The French Government will increase the minimum wage by 1.6% starting in December, a month ahead of schedule, to try to contain social unrest. The measure will raise the minimum income to 1,502 euros net per month, but the unions consider the increase insufficient and called for new mobilizations for November 17.

First modification: 11/09/2026 - 22:53

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The Government of France will bring forward to December the increase in the minimum wage that was scheduled for January 2027, in an attempt to contain the social protests that have spread throughout the country since September and whose main demands are the loss of purchasing power, the deterioration of public services and the increase in the cost of living.

The French Prime Minister, Sébastien Lecornu, announced this Monday, November 9, that the minimum wage will increase by 1.6%, which will allow it to be raised to 1,502 euros net per month, about 24 euros more compared to the current 1,478 euros. The decision was communicated after a meeting with union representatives and business organizations, amid growing pressure on the Executive.

The measure seeks to offer an immediate response to the workers' unrest, but has not managed to defuse the conflict. The main union organizations consider that the increase is insufficient compared to the increase in prices and maintain their demands for a more significant salary improvement. The General Confederation of Labor (CGT) even announced new days of protest for next November 17.

The decision comes after weeks of demonstrations that began in September with student mobilizations over the lack of funding for schools and which later transformed into a broader movement against economic difficulties and government policies. The protests included riots in several French cities on October 17, which surprised security forces, and a general strike that unions said brought together 1.6 million people.

Read alsoStudent unions claim that 250,000 people participated in protests this Saturday in France

An early rise to contain social discontent

In France, the national minimum wage is usually updated automatically every January 1 to compensate for inflation and, in certain circumstances, may receive additional increases during the year. However, given the increase in social tensions, the Government decided to bring forward the planned update and apply a 1.6% increase in December.

The Minister of Labor, Jean-Pierre Farandou, explained that the increase will raise the minimum monthly wage to 1,502 euros net. This is the third increase recorded during the year, which accumulates a progression of 5.3%.

The prime minister defended the decision and recalled that it is one of the largest salary improvements in recent decades.

"This is the second largest increase in 20 years, so it should not be a reason for contempt," Lecornu said after meeting with unions and business representatives.

The Executive also announced that it will reduce employers' burdens, making part of that relief conditional on companies committing to negotiate salary increases in collective agreements.

The initiative aims to balance two objectives: improve workers' income and prevent the increase in labor costs from further affecting small and medium-sized companies.

However, the Government has limited budgetary space due to the high level of public debt and the difficulties in approving economic measures in a deeply divided Parliament.

Lecornu acknowledged that "social tensions are strong" and that there are "political concerns about the future." He also warned about the difficulties of reaching agreements in a pre-electoral context and with public accounts under pressure.

Read alsoProtests in France: mobilization is reduced, but there is a new call for demonstrations on Tuesday

The unions demand increases of up to 150 euros

The union organizations rejected the Executive's proposal and maintain that the increase does not respond to the needs of workers who earn the minimum wage.

The French Democratic Confederation of Labor (CFDT), the largest union organization in the country, demands an increase of 100 euros per month. For its part, the CGT demands an increase of 150 euros net, equivalent to approximately 10% of the current minimum wage.

The general secretary of the CGT, Sophie Binet, questioned the ability of the measure to stop the mobilizations and called for a broader response to social demands.

"The anger is not going to disappear because the Government announces a few additional euros on the minimum wage," he said in an interview with the 'France Inter' radio station.

The union leader also criticized the real scope of the increase. According to their calculations, if the Government had limited itself to raising the minimum wage to 1,500 euros, the additional improvement compared to the automatic increase planned for January would have been just five euros, given that this update would have meant about 18 euros per month.

After the final announcement, Binet described the increase as "crumbs" and assured that the increase is not enough "not even for a kilo of tomatoes." "We have not come here to beg," he added after the meeting with the prime minister.

The president of the CFDT, Marylise Leon, also considered the proposal "insufficient."

For the CGT, a more significant wage increase would improve the purchasing power of workers, contribute to stimulating consumption and favoring economic growth. The union also proposes to review the distribution of added value in production chains, increase taxation of large companies and establish support mechanisms for small companies.

Another point of disagreement is the situation of public employees. The public service unions were not invited to the first meeting with the Government and will be received by Lecornu at a later meeting. According to Binet, some 850,000 public workers earn below the minimum wage.

Given the lack of satisfactory responses, the union organizations called a new day of general strike for November 17.

Read alsoUnions consider the French government's response to social protests insufficient

Employers warn about the impact on small businesses

From the business sector, the salary increase also generates concern about its possible consequences on production costs and hiring.

Michel Picon, president of the Union of Proximity Companies (U2P), considered it "viable" to establish a minimum salary of 1,500 euros net, as long as the Government accompanies the measure with economic compensation.

Among the alternatives, he mentioned adjustments in social contributions and employer exemptions, with the aim of preventing the increase from falling exclusively on employers.

In an interview with the 'TF1' network, Picon warned that transferring the cost of salary increases entirely to companies could put thousands of small businesses in danger.

The employers' association also questioned the lack of details on the tax reductions announced by the Executive and pointed out that companies will have to negotiate collective agreements without sufficient visibility on future tax measures.

The Government, for its part, rejected the possibility of applying much higher increases in the minimum wage because it believes that they could cause job destruction. Lecornu defended that the increase must be accompanied by measures that protect both workers' income and business activity.

Along these lines, he recalled other initiatives aimed at sustaining purchasing power, such as the extension until 2027 of aid for the purchase of fuel aimed at certain sectors.

France tries to avoid recession amid uncertainty

The social tension coincides with a delicate moment for the French economy, which is trying to avoid a technical recession after registering a contraction of 0.1% during the third quarter.

According to estimates by the Bank of France, the eurozone's second-largest economy could experience moderate growth during the last three months of the year.

The organization avoided offering a specific forecast due to the uncertainty generated by the protests, riots and the country's political and budgetary situation.

The estimates are based on a monthly survey of 8,500 companies. The results show that economic activity rebounded in October in the industrial and services sectors, while construction remained practically stable.

The manufacturing industry found support in demand from the aerospace, technology and defense sectors, as well as the construction of data centers. In contrast, automobile manufacturers and other industrial branches continued to face difficulties.

The companies consulted expect industrial production to accelerate during November, driven by a recovery in pharmaceutical and automotive activities and by the dynamism of the aerospace and technology industries.

Growth is also expected in services, although more moderate, while construction could continue to stagnate due to weak demand.

Despite these prospects, the Bank of France identified a significant increase in uncertainty, especially in the construction and services sectors. Companies pointed to political and budgetary instability, social unrest and rising fuel prices as some of their main concerns.

They also warned that clients are delaying projects and investment decisions, which reduces visibility into economic activity in the coming months.

Read alsoFrench unions consider the Government's measures insufficient

With EFE and Reuters

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