Minimum salary increases with start of new year

10 Jan 20

FRANCE

IMPACT – MEDIUM

What is the change? France has increased its minimum wage to €10.15 per hour (€1,539.42 per month).

What does the change mean? The new wage represents an increase of about 1 percent over last year’s level. The minimum wage applies to all workers in France; it is also used as the basis to calculate Talent Passport wage minimums.

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

Additional Information: The new minimum wages will be as follows:

Wage requirement Monthly minimum
Minimum gross salary €1,539.42 per month
Passport Talent – Employee on Assignment €2,770.96 per month (monthly minimum gross salary X 1.8)
Passport Talent – Salarié qualifié €3,078.84 per month (monthly minimum gross salary X 2)

When calculating the salaries employees must be paid, employers should take into account (1) minimum salary rates as set by law (detailed above), (2) obligations under applicable collective bargaining agreements and (3) the salaries of other employees who are doing the same work (i.e., “peer salary”).

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

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