France 2026 NAO Salary Increases Hit Four-Year Low

The 14th edition of Mercer’s NAO survey shows the median budget for base‑salary raises in France fell to 2 % for 2026, the lowest level since the pandemic. While 66 % of employees—mostly executives—receive individual increases, the amounts continue to shrink, down from a 1.80 % median in 2025. Non‑executives largely rely on general raises that now sit between 0.35 % and 0.38 %.

In anticipation of the EU’s salary‑transparency directive slated for early 2028, French companies are shifting part of their compensation budgets toward narrowing internal pay gaps. The average real annual salary in France in 2025 was €44,304, positioning the country in the middle of the European rankings.

Rebecca Adams, Chief People Officer at Cohesity, highlighted the shift from mere compliance to cultural change, noting that her company has applied California’s pay‑transparency law since 2023 as a model for French firms preparing for the 2028 deadline.