Workplace Report (September 2003)

Features: News Europe

French hourly minimum wage goes up by 5.3%

The French national minimum wage, known as the SMIC, has been increased by 5.3%.

This increase applies to the hourly minimum wage which went up on 1 July from €6.83 to €7.19. This produces a monthly figure of €1,090.48, based on a working week of 35 hours.

The relatively high increase, at a time when prices are rising by 1.8%, is largely explained by the need to bring hourly and monthly SMIC levels back into line.

Because of the move from a 39 to a 35-hour week in France and the fact that previous monthly pay at SMIC levels has been protected there were already some employees whose national minimum pay was above €1,090.48 before the increases. Their monthly increases have been lower, ranging from 1.6% to 3.2%.

The government has agreed to harmonise the two rates by July 2003, which means higher than normal increases in the hourly SMIC rate in each of the next two years.

Figures published last month by the government show that average agreed weekly working time in France is now 35.6 hours and that average pay increased by 2.4% in the 12 months to June 2003.

The euro was worth 69p on 28 August.


This information is copyright to the Labour Research Department (LRD) and may not be reproduced without the permission of the LRD.