French minimum wage and purchasing power measures, Digi Mart USA News (France): French Prime Minister Sébastien Lecornu announced several measures aimed at supporting purchasing power on Monday, November 9. The minimum wage, or SMIC, is set to rise by 24 euros net starting December 1, bringing it from 1,478 euros to about 1,502 euros net per month, an increase of 1.6 percent.
The increase falls well short of union demands. The CFDT had called for an additional 100 euros, while the CGT requested a 10 percent rise, roughly 150 euros.
The government also announced that the fuel allowance, whose ceiling was raised to 1,000 euros at the start of the school year, will be extended into 2027. Economy Minister Roland Lescure said the government will propose an amendment to keep this ceiling next year.
The allowance is optional and allows employers to cover part of employees’ travel costs when they use personal vehicles.
Another change concerns the annual tax exemption cap on overtime pay, which will rise from 7,500 euros to 10,000 euros. The government also plans to extend through 2027 employer coverage of up to 75 percent of public transport subscriptions.
Finally, the profit-sharing bonus, known as the prime de partage de la valeur, could be opened to more employees, particularly in companies with more than 50 staff. Trade Minister Serge Papin said nearly four million employees could be affected, compared with 2.5 million at present.
