France: The Minimum Wage will be Increased by 2,4% Effective June 1st

Due namely to the anticipated rise in energy prices and inflation, the French government has decided to increase the minimum wage by 2,4%. This follows a previous increase in January of 1,18%.

This will have a significant impact on the more than 2 million workers in France who are paid the minimum wage.

It may also require companies to review their internal pay scales as it can lead to a reduction of the gap between workers earning the minimum wage and those earning slightly above the minimum wage namely in accordance with the minimum salaries set out under the applicable collective bargaining agreement.

This increase will also impact on the level of social security contributions and any other benefits or variable remuneration calculated based on the minimum wage.

Key Action Points for Human Resources and In-House Counsel

Check with your payroll that the new minimum wage has been integrated before the June pay cycle and what impact this increase can have on your pay scales.