France raises the minimum wage by €24 a month; unions say it's not enough

French Prime Minister Sébastien Lecornu announced on Monday, November 9, that France's minimum wage, known as the SMIC, will rise by about 24 euros a month, starting December 1. Unions say it is not nearly enough, employers are worried about the costs, and protests over the cost of living are continuing.

What was announced

• Minimum wage: up about 1.6 percent, to roughly 1,502 euros a month after payroll deductions. That is an extra 24 euros a month, or a little under 300 euros a year.
• Earlier than usual: the raise takes effect December 1 instead of the usual January 1.
• A rare government boost: most of the increase (about 1 percent) is the automatic adjustment that French law requires to keep up with prices. The other 0.6 percent is an extra raise chosen by the government. That kind of discretionary boost, known in France as a "coup de pouce," has not happened since 2012.

The announcement came after a "social conference" at the prime minister's office with unions and employer groups, called in response to weeks of protests and strikes.

How France's minimum wage works

France's minimum wage is set by law and applies across the whole country. Each January it rises automatically by a formula based on inflation for lower-income households and part of the growth in average wages. On top of that, the government can decide to add an extra boost, which is what Lecornu has now done. In January 2026, the gross minimum wage was 12.02 euros an hour, before payroll deductions.

France is one of several European countries with a national minimum wage. Neighboring Germany raised its own minimum to 13.90 euros an hour at the start of 2026, while some countries, such as Italy and the Nordic states, rely instead on wages agreed between unions and employers in each industry.

Who earns the minimum wage

According to France's labor ministry statistics office (Dares), about 2.1 million private-sector workers, roughly 12 percent of employees, benefited directly from the last automatic raise in January 2026. The share is much higher in very small businesses: about 22 percent of employees in firms with fewer than 10 workers, compared with under 10 percent in bigger companies. Restaurants, retail, cleaning and care work are among the sectors with the most minimum-wage jobs.

What it means for businesses

The government is using tax rules to push companies to raise pay:

• Payroll-tax relief tied to wage talks. In France, employers pay lower social charges on low wages. The government says industries whose agreed minimum pay is still below the SMIC will get less favorable relief, to push them to negotiate raises. A decree is expected within days.
• Overtime. Overtime pay is to be free of income tax up to 10,000 euros a year.
• Other perks. Some employer-paid bonuses and employer-paid public transport costs are to become tax-free.
• A wider reform. The government says it will also work on a broader reform of payroll charges, with the goal of increasing workers' take-home pay.

Reactions

Unions called the raise too small. The CFDT union had asked for 100 euros a month and the CGT for about 150 euros. Some unions say they will keep up their protests.

Employers are uneasy. Patrick Martin, head of the main business group, Medef, said companies would have to "negotiate blind," without knowing what the future payroll-tax rules will be. Small businesses in particular worry about higher labor costs at a time of weak growth.

Why it matters

The cost of living is the biggest political issue in France right now. The government is trying to calm public anger without raising costs so much that businesses cut jobs or raise prices further. Many European countries face the same balancing act: when minimum wages rise faster than productivity, some firms hire less, but when they rise too slowly, low-paid workers fall behind rising prices.

What 24 euros buys

For a full-time minimum-wage worker, 24 euros a month is roughly the cost of one weekly grocery trip for a single person, or part of a monthly public transport pass in many French cities. Unions say that is far below what households have lost to higher prices over the past few years. The government says it is a meaningful first step.

What to watch next

• Whether unions call new strikes after the announcement.
• The decree on payroll-tax relief and how industries respond.
• Whether the raise shows up in prices at restaurants and shops in early 2027.