French PM Sébastien Lecornu Announces Minimum Wage Increase and Business Tax Breaks

PARIS, Nov 9 (OPA) — French Prime Minister Sébastien Lecornu unveiled the purchasing power measures on Monday at Matignon following discussions with employee and employer representatives. The minimum wage hike, representing a 24-euro net monthly increase, will take effect on December 1 instead of January 1, 2027. Lecornu described the adjustment as the second-largest minimum wage increase recorded over the past two decades.

To balance higher labor costs for businesses, the government introduced parallel tax measures. These include income tax exemptions for overtime earnings up to 10,000 euros, exemptions for employers' contributions to public transport costs, and tax-free status for value-sharing bonuses. Lecornu also announced plans for a broader reform of social security contributions aimed at bolstering net salaries.

Trade unions responded cautiously to the announcements, arguing that the measures fall short of addressing ongoing economic pressures. The CFDT had previously demanded an additional 100 euros net per month, while the CGT pressed for a 150-euro increase. CGT General Secretary Sophie Binet reiterated a call for widespread strikes and demonstrations scheduled for November 17.

Lecornu defended his administration's measured approach, rejecting rapid announcements in favor of structural solutions. Sector-wide negotiations across roughly 100 professional branches will determine specific implementation frameworks for future wage agreements, with the state acting as guarantor for mutual commitments between labor and management.