France’s Minimum Hourly Wage Rises in 2024

The legal minimum hourly wage in France (SMIC) has risen by 1.13% to €11.65 (US$12.80), up from €11.52 (US$12.40) in 2023, effective January 1, 2024, as outlined in a decree (Decree n° 2023-1216 of 20 December, 2023) published in the country’s gazette on December 21 and reported by Bloomberg Tax.

As per the change, the gross monthly minimum wage in France stands currently at €1,766.92 (US$1895.40) for 35 hours worked per month.

This statutory rate is evaluated and established annually by law, and it is applicable to all employees in France, including those in the overseas departments of French Guiana, Guadeloupe, Martinique, and Réunion, as well as the overseas collectivities of St. Barthélemy, St. Martin, and St. Pierre and Miquelon. Mayotte, as an overseas department, has a lower minimum wage, which has also risen to €8.80 (US$9.44) per hour from €8.70 (US$9.33), as stipulated in the same decree.

Additional Impact of Raise:

• Individuals holding various types of French immigration permits are also impacted by the rise since the SMIC serves as the basis for determining the minimum gross salary required for certain French immigration permits sought by third-country nationals (those from countries outside the EU and EEA), as reported by Ernst & Young.
• The monthly social security ceiling increased by 5.4% to €3,864 (from €3,666 in 2023). The annual ceiling is now €46,368. This upper limit is crucial for calculating social security entitlements, contributions, and daily allowances for various situations including retirement pensions, maternity leave, and disability pensions, and it is revalued annually on January 1 in line with wage trends.
• In conjunction with the social security ceiling revaluation, the minimum hourly stipend for internships has risen to €4.35 (up from €4.05 in 2023). This applies to internships lasting at least 2 months, whether consecutive or not.

Other Key Changes:

• Additional responsibility is imposed on employers to provide written “key information relating to the employment relationship” to both new hires and existing employees. While not legally required for indefinite-term employees, written employment agreements are strongly recommended.
• Elimination of the waiting period for the disbursement of social security benefits in instances of miscarriage or medically justified abortion.
• Restrictions on sick leave related to videoconference medical appointments.
• New obligations for foreign corporations to register with the French Company Formalities Office.