France | Minimum wage increased

The French government announced an increase of 1.13% to the interprofessional minimum wage for growth (SMIC).

Key Points:

• The new monthly base minimum wage will rise to €1,766.92 (about US$1,931), which is an increase from the previous monthly base minimum wage of €1,747.20.
• The following immigration categories use the SMIC as a determining factor and will increase as follows
  • Talent passport — employee on mission: €38,165.47 per year (up from €37,739.52 per year)
  • Talent passport — young graduate: €42,406.08 per year (up from €41, 933 per year)
  • Talent passport — legal representative: €63,609.12 per year (up from €62,899.20 per year)

Additional Information: Additional details on the minimum wage determination can be found here. EU Blue Cards are subject to a separate salary threshold. Additionally, the compensation for internships is increasing to €4.35 per hour, compared to the previous hourly rate of €4.05.

BAL Analysis: Businesses may see an increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account when planning their 2024 budgets.

This alert has been provided by the BAL Global Practice Group.

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