The French government announced an increase of 1.13% to the interprofessional minimum wage for growth (SMIC).

Key Points:

• The new monthly base minimum wage will rise to €1,766.92 (about US$1,931), which is an increase from the previous monthly base minimum wage of €1,747.20.
• The following immigration categories use the SMIC as a determining factor and will increase as follows
  • Talent passport — employee on mission: €38,165.47 per year (up from €37,739.52 per year)
  • Talent passport — young graduate: €42,406.08 per year (up from €41, 933 per year)
  • Talent passport — legal representative: €63,609.12 per year (up from €62,899.20 per year)

Additional Information: Additional details on the minimum wage determination can be found here. EU Blue Cards are subject to a separate salary threshold. Additionally, the compensation for internships is increasing to €4.35 per hour, compared to the previous hourly rate of €4.05.

BAL Analysis: Businesses may see an increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account when planning their 2024 budgets.