Minimum salary increases

IMPACT – MEDIUM

What is the change? France has increased its minimum salary to €1,521.22 per month, which represents a 1.2-percent increase from 2018.

• 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: 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”).

The new annual minimum salary requirement of €18,254.64 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:

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

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.