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FRANCE – 2015 Minimum Salary Increases

The French government has announced an increase in the minimum legal monthly salary requirement (SMIC), with effect from 1 January 2015, bringing it up to 1457.52EUR per month (up by 8%, from 1445.38EUR per month in 2014).

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.

Salary Requirements 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. The new application forms for work permits (see our alert here) make this very clear.

Employees on assignment to France should be also be paid according to their level of expertise and experience, and 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.

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 26,236EUR per year. However, note that again, the salary must be relevant for the actual position and experience of the applicant.

Background

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. 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 news alert was prepared using information provided by Apro Consulting.

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.