France considers early minimum wage increase amid social unrest

The French government is considering an early increase to the SMIC (minimum wage) before the automatic adjustment scheduled for January 1, 2027. Economy Minister Roland Lescure indicated that a hike could be discussed with social partners if inflation persists, aiming to address growing public anger regarding purchasing power.

While the government may consider an increase of approximately 1%, which would equate to roughly 15 euros net per month, labor unions are demanding much higher adjustments. For instance, CFDT representative Marylise Léon has called for a 100 euro net increase.

Small business representatives have expressed strong opposition. Michel Picon, president of the Union des entreprises de proximité (U2P), warned that increasing the minimum wage is not a solution for social peace and could lead to further business failures. He noted that the cost of such measures is already significant, with the Medef and U2P raising concerns about the economic burden on companies already facing high failure rates.