Minimum Wage Increased

The situation

Effective January 1, 2018, the national minimum wage has increased to EUR 1,498.47 per month, up 1 percent from last year.

Determining the minimum salary 

A foreign worker’s minimum salary is determined by considering the below criteria:

• The peer salary rate per the applicable French collective bargaining agreement for the proposed position;
• The market salary rate for the host position; and
• The minimum wage.

 

If no collective bargaining agreement is applicable, or if the collective bargaining agreement does not specify a peer salary rate, the market salary rate applies as the minimum salary level.

If no collective bargaining rate or market salary rate is available, the minimum wage applies as the minimum salary level.

Affected permit types

• Permit types affected by the increase.
  • ICT Secondment – Détaché; Introduction de Salarié Work Permit;
  • Service Provider Work Permit (Salariés détachés (hors mobilité intragroupe)
• Permit types with a separate threshold.
  • Talent Passport SEM: EUR  32,366.95 per year
  • EU Blue Card: EUR 53,836.50 gross per year (unchanged)
  • Talent Passport – Salarié qualifié : EUR 35,963.88 per year

 

A closer look

• Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew a work permit on or after January 1, 2018 must increase the foreign national’s minimum salary to comply with the new rule.
• Pending applications. Employers of foreign nationals with pending work permit applications as of January 1, 2018 must increase the foreign national’s minimum salary to comply with the new rule. 
• Immigration applications that do not meet the minimum salary will be rejected.

 

Reminders on other requirements

• Benefits and allowances. As before, benefits and allowances may only be included if they are a fixed amount, 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.

 

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].