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Small SMIC Hike Exposes Pay Shortfall in 164 Branches, Unions Demand Faster Fixes

A government decree that gives branches procedural leeway before penalties risks leaving millions legally below the minimum wage.

Overview

  • The government announced on Monday that the statutory minimum wage will rise by 1.6% to about €1,502 net and take effect on December 1.
  • The CGT says 164 professional branches covering more than 14 million workers will have contractual minima below the new SMIC, while the Ministry of Labour counts 69 already non‑compliant and expects 64 more to be affected.
  • Labour Minister Jean‑Pierre Farandou convened an accelerated salary monitoring committee and will send letters asking branches to open immediate negotiations to raise branch minima.
  • Unions condemn a recently published decree that they say allows up to a year and multiple procedural options before sanctions, and public‑sector unions have held talks at Matignon and plan industrial action on November 17.
  • Officials warn the issue will strain public finances because many civil servants will need a compensatory differential and the government is considering tying employer contribution relief to negotiation outcomes.