Higher minimum salaries set for 2018

IMPACT – MEDIUM

What is the change? France has adjusted its minimum salary requirements for foreign workers.

What does the change mean? Employers must be sure to meet the required minimum salary for their employees. In doing so, they must take into account (1) minimum salary rates as set by law (detailed below), (2) obligations under applicable collective bargaining agreements and (3) the salaries of other employees who are doing the same work (i.e., “peer salary”).

• Implementation time frame: Immediate and ongoing. The new salary minimums took effect Jan. 1.
• Visas/permits affect: Work permits.
• Who is affected: Employers and foreign employees working in France.
• Business impact: Businesses may need to adjust their budgets to meet the new wage minimums.  

Additional information: The new annual minimum salary requirement of €17,981.64 applies directly to some workers. In other cases, it is used as the baseline to set salary minimums that are specific to particular permit types. New salary minimums are as follows:

BAL Analysis: Employers should make sure they are in compliance with all salary requirements, including compliance with statutory salary minimums, the market salary rate for specific positions and obligations under collective bargaining agreements.

This alert has been provided by the BAL Global Practice group and our network provider located in France. For additional information, please contact your BAL attorney.

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