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French Minimum Wage Panel Recommends Only Automatic 1.4% Rise for January 2026

The government will set the final figure after mid-December inflation data are confirmed.

Overview

  • The expert group advises against any discretionary “coup de pouce,” limiting the 1 January adjustment to the inflation-linked formula estimated at about 1.4%.
  • If the recommendation is adopted by the prime minister, full-time Smic earners would see an increase of just under €20 net per month.
  • The panel cites a slowing labor market, a minimum wage near the median, and the high fiscal cost of low‑wage payroll tax exemptions as key reasons.
  • About 2.2 million private‑sector employees—roughly 12.4%—are paid at the Smic, according to Labor Ministry data.
  • The report proposes moving future announcement dates to September to give companies and unions more time to prepare wage talks.