Minimum Wage to Increase
December 23, 2019
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At a Glance
- Effective January 1, 2020, the minimum wage in France will increase to EUR 10.15 per hour (EUR 1,539.42 per month or EUR 18,473.04 per year), a .91 percent increase from last year’s minimum wage.
- The increase in the minimum wage does not directly affect most French work authorization types, but does impact some Talent Passport categories, as the minimum salary requirements for those categories are linked to the minimum wage.
The situation
Effective January 1, 2020, the minimum wage in France will increase to EUR 10.15 per hour (EUR 1,539.42 per month or EUR 18,473.04 per year), a .91 percent increase from last year’s minimum wage. This will result in the below minimum salary changes:
Category |
Current minimum salary level |
New minimum salary level |
|
Posted workers for up to 90 days per 180-day period |
|
|
|
EU Intracompany Transfer (ICT) Permit (Salarié Détaché ICT) |
||
|
Introduction de Salarié |
||
|
Service Provider Work Permit (Prestataire de Service) |
||
|
Talent Passport – Salarié en Mission (Employee on Assignment) |
EUR 32,858.35 per year (1.8 times annual minimum wage) |
EUR 33,251.47 per year (1.8 times annual minimum wage) |
|
Talent Passport – Salarié Qualifié (Young Graduate) |
EUR 36,509.28 per year (2 times annual minimum wage) |
EUR 36,946.08 per year (2 times annual minimum wage) |
|
Talent Passport – Mandataire Social (Legal Representative) |
EUR 54,763.92 per year (3 times annual minimum wage) |
EUR 55,419.12 per year (3 times annual minimum wage) |
A closer look
- Existing employees. Employers of foreign nationals must increase foreign nationals' minimum salaries to comply with the new rule.
- Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew a permit on or after January 1, 2020 must increase foreign nationals' minimum salaries to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused.
- Pending applications. Employers of foreign nationals with pending work permit applications as of January 1, 2020 must increase foreign nationals' minimum salaries to comply with the new rule.
Reminders on other requirements
- Benefits and allowances. As before, benefits and allowances may only be included in the minimum salary calculation if they are fixed, taxable, subject to social security and visible on the pay slip. Reimbursement of relocation expenses such as allowances for food / transportation / housing / per diem cannot be included. An economic adjustment or assignment premium may be included if paid by the home employer and visible on the pay slip.
- Currency. As before, employers are required to guarantee the salary in EUR regardless of payroll location and/or exchange rate fluctuations.
Background
The minimum wage was increased by 1.5 percent in 2019 and one percent for 2018. Since the salary thresholds for some Talent Passport types are linked to the minimum wage, they are indexed at the same time and at the same limited percentage.
Looking ahead
The government is expected to publish the new threshold for the EU Blue Card between April and May 2020. Fragomen will report relevant developments on other countries’ increases and other updates in France as they occur.
Fragomen in France is Fragomen France AARPI., operating as an immigration consultancy/law firm in France. This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
