France advances minimum wage increase and prepares tax relief
The 1.6 per cent increase takes effect on 1 December, adding €24 net a month. Unions had demanded larger increases.
French Prime Minister Sébastien Lecornu has announced that the minimum wage increase scheduled for 1 January 2027 will instead take effect on 1 December. Monthly net earnings will reach around €1,502. The announcement followed a conference at Matignon attended by employer and employee representatives.
An implementing decree is expected shortly. Lecornu said the increase should open the way for broader pay talks, and announced plans to reform general reductions in social security contributions to raise take-home earnings. Negotiations are to continue across around a hundred professional sectors, with each discussing its own pay arrangements.
To address employers’ concerns over labour costs, the government also plans to exempt up to €10,000 in overtime earnings from income tax. Other proposals would exempt employer contributions towards public transport costs and make value-sharing bonuses tax-free. These bonuses let companies distribute some of the value they create through one-off payments to employees. Lecornu wants the state to act as guarantor of reciprocal commitments by employers and staff.
Trade unions responded cautiously. The CFDT had requested a net monthly increase of €100, while the CGT sought around €150. Before the announcement, CFTC president Cyril Chabanier had said the measures being considered did not match the level of public discontent. CGT general secretary Sophie Binet is calling for another major mobilisation involving strikes and demonstrations on 17 November.
