France to cap labour costs in early 2027 if wages rise
By the AFREEQUE newsroom, based on BFMTV
French Labour Minister Jean-Pierre Farandou has promised employers’ organisations that the rise in labour costs will be limited by decree in early 2027 if a wage recovery takes hold. He spoke to Ouest-France after a wage monitoring committee held on Thursday 12 November, three days after a minimum wage increase was announced, according to BFMTV.
French Labour Minister Jean-Pierre Farandou has pledged to limit the rise in labour costs in early 2027 if wage increases become widespread. The scale of reductions in employers’ social security contributions could then be adjusted by decree, Jean-Pierre Farandou said in an interview published on Saturday by Ouest-France.
The minister said the government will spend more than €70 billion a year on reductions in social security contributions, the main public mechanism supporting employment. The 2027 Social Security budget bill provides for maintaining the freeze applied to general reductions and broadening the base of remuneration taken into account.
Jean-Pierre Farandou expects to make proposals to the prime minister within three months. He also announced a reform of reductions in employers’ social security contributions in early 2027, following the wage monitoring committee held on Thursday to encourage companies to raise pay above sector minimums.
