France: New Minimum Wage Levels Announced

January 7, 2021 Lucy Halse

Key Points

  • New minimum wages are effective as of January 1, 2021
  • The new national minimum wage is EUR 1,554 per month
  • Employees must be compensated at the peer salary rate, minimum wage, or rate comparable to a local worker in a similar position; whichever is higher
  • Talent Passport holders must be paid at 1.8 times the minimum wage
  • The requirement applies to all current, new, and pending applications as of January 1, 2021
  • Employers must compensate workers in EUR

Overview

The French government has announced new minimum wages, effective January 1, 2021.

What are the Changes?

The new minimum wage in France will increase to EUR 1,554 per month.

Who is Affected?

The new minimum wage requirements apply to all applications, including current, pending, and new applications as of January 1, 2021. A separate salary threshold applies for EU Blue Cards.

What Should Employers and Applicants Know?

Many French work authorization types require individuals to receive the highest of either the peer salary rate for the applicable French bargaining agreement, the minimum wage, or a rate comparable to a local worker in a similar position. Talent Passport holders must receive compensation at 1.8 times the minimum wage.

Benefits and allowances may count towards the minimum wage if they are taxable, a fixed amount, subject to social security, and documented on the employee’s pay stubs. Reimbursement for relocation expenses such as transportation, housing, and food does not qualify. Assignment premiums and economic adjustments may qualify if they are paid by the home employer and outlined on the employee’s pay slip.

Employees must be compensated in EUR regardless of exchange rate fluctuations and payroll location.

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Content in this publication is not intended as legal advice, nor should it be relied on as such. For additional information on the issues discussed, consult an Envoy-affiliated attorney or another qualified professional.

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