What's the Minimum Wage in France in 2024? Master Guide

What's the Minimum Wage in France in 2024? Master Guide

What's the Minimum Wage in France in 2024? Master Guide

January 5, 2024

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Key Takeaways

  1. The minimum wage in France is called the SMIC (Salaire Minimum Interprofessionnel de Croissance)
  2. It’s determined at the national level and provided as both hourly and monthly minimums
  3. Minimum wages may go above the SMIC in some cases but never below
Summary

 

When embarking on international expansion, understanding the salary standards in a new market is crucial for a successful start and long-term success. Comprehending the minimum wage in France is vital for effective workforce management and avoiding severe employer penalties while ensuring good job performance, retention, and overall employee satisfaction.

 

How the Minimum Wage Operates in France

 

The minimum wage in France is determined at the national level, providing a level of uniformity across the country. The government sets the hourly and monthly minimum wage based on factors such as the cost of living, economic conditions, and other relevant considerations.

Global companies operating in France must be attentive to minimum worker benefits regulations, including adhering to the correct minimum wage. Failure to comply may lead to significant penalties, as witnessed in various cases in 2023, where both local and foreign companies faced substantial fines and penalties for improper workplace practices.

To navigate these challenges, INS Global provides comprehensive support to help businesses comprehend local best practices and benchmarks in France.

 

 

Determining the Minimum Wage in France

 

Adjustments to minimum wage rates can occur annually or less frequently, with updates typically reflecting economic conditions, inflation rates, and the average salary levels in the country. The new minimum wage in France, which began on January 1st, 2024, is the 8th such rise in 3 years.

The government constantly examines the minimum wage in France, called the SMIC (Salaire Minimum Interprofessionnel de Croissance), to meet cost-of-living rises. In 2024, this resulted in a 1.13% increase in the SMIC from 2023.

 

The Minimum Wage in France for 2024

 

As of January 2024, the minimum wage in France is set at a national level and applies uniformly across the country to all labor hours employees perform. In 2024, the new minimum wage in France is:

 

Monthly minimum wage: €1 766.92 gross

Hourly minimum wage: €11,65 gross

 

Exceptions and Adjustments to the SMIC in France

 

Specific considerations apply to certain situations and areas across the world in terms of the SMIC. This is also true of the minimum wage in France in some cases:

 

Industry-Specific Adjustments

Some industries or sectors may negotiate different minimum wage levels through collective bargaining agreements (CBAs) or similar arrangements. In all cases, though, these cannot go below the national minimum wage.

 

Employee Experience and Skill Levels

SMIC levels may vary based on an employee’s experience or skill level in specific regions.

 

However, the SMIC remains consistent in other situations, which may be different in other countries:

 

Probation Period

During the probation period, workers may receive up to 20% less than the wage agreed upon in their employment contract, but this amount must not fall below the SMIC in France.

 

Special Economic Zones

France does not designate special economic zones with differing regulations on minimum wages.

 

The Minimum Wage in France and Special Work Hours

 

Overtime

 

Overtime must be compensated at a rate of 1.5X standard salary for work hours exceeding France’s 35-hour workweek.

 

Rest Days and Public Holidays

 

Employees who work on weekends are entitled to 2X their standard pay. Those working on national holidays receive a minimum of 3X their standard pay.

 

Untaken Holiday Leave

 

If employees cannot use paid annual leave, employers must compensate them with the standard wage plus 2X their regular salary for each untaken day.

 

Tools for Determining Minimum Salaries in France

 

Labor Authorities

 

National labor authorities determine and announce minimum wage levels each year, and are also responsible for investigating potential wage theft.

 

Public Announcements

 

As the SMIC in France remains mostly consistent across the labor landscape, there are no specific tests for determining an individual’s minimum wage. Minimum wage rates are officially announced and made publicly available for employers and employees.

 

minimum wage in france

 

Ensuring Compliance in France with INS Global

 

Non-compliance with the minimum wage in France may result in serious fines, warnings, or legal action. That’s why INS Global offers compliance and global expansion services that can help you navigate these challenges and support your businesses during its most vulnerable periods of transition.

With expertise in HR operations and employment law compliance worldwide, INS Global facilitates a smooth entry into the French market. Whether it’s recruiting, payroll, compliance, or HR streamlining services, our local Employer of Record (EOR) in France provides tailored solutions to meet your specific business needs.

For more information on how to enjoy a seamless transition into the French market, contact our expert global expansion advisors today.

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