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FRANCE – 2016 Minimum Salary Increases

The French government has announced an increase in the minimum legal monthly salary requirement (SMIC), with effect from 1 January 2016, bringing it up to 1466.62 EUR per month (up from 1457.52 EUR per month in 2015).

The SMIC is the minimum legal salary for all workers in France. A change to the SMIC affects minimum salary thresholds for some types of work permit.

Note that the French bargaining agreement’s specifications on the salary also have to be taken into consideration.

Intra Company Transferees

The increase to the SMIC particularly affects employees coming to France as intra company transferees (i.e. using the Salarié en Mission route) as the minimum salary level for this route is set at SMIC x 1.5; i.e. at least 2199.93 EUR per month. Again, the collective bargaining agreement also has to be taken into consideration.

Salary Requirements for Foreign National Employees in France

It is important to note that foreign nationals locally hired in France must be paid salaries comparable to what a French national in the same position at the same company would expect to receive.

Salaries in all cases should meet minimum requirements as stated in the applicable French conventional labour regulation (i.e. collective bargaining agreement) applicable to the parent French company.

Background

The SMIC increases every year in France. It is calculated as an hourly rate, with the monthly rate being worked out assuming a 35 hour week (which is the general working week in France, although depending on the employment contract and category of employment this may vary). More information on historical SMIC rates is available here.

Action Items

  • Review the salaries of applicants for upcoming transfers to France, particularly those following the intra company transfer route, to ensure compliance.

This alert was drafted using information provided by Apro Consulting, Expat Partners and Itama Mobility.

DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2017 Peregrine Immigration Management Ltd.