[France] Wages increase by around 3% in 2026, collective increases decline

In France, according to new research, 2026 is set to be the year of wage normalisation. Following two years dominated by inflation and broader increases, salary bumps are expected to stabilise at a median level of 3.1 per cent, Entrevue.fr reports. 

This real, but now targeted, growth will not affect all employees equally. A recent survey by the consulting firm WTW found that only 29 per cent of companies operating in France are still planning general increases this year, compared to more than six out of ten last year. 

This decline reportedly signals a shift in policy, with the goal changing from uniformly offsetting rising prices to focusing budgets on individual increases based on performance, skills, and the strategic contribution of employees. 

Entrevue.fr says that this individualised approach is becoming the dominant one in an economic context considered more constrained and uncertain.

WTW surveyed more than 900 companies operating in France, and its findings reveal a clear shift. Merit-based raises are now replacing collective increases, which are perceived as less effective in supporting organisational transformations. HR departments are favouring more nuanced decisions, seeking to retain key employees rather than distributing a global budget evenly. 

This trend is reportedly happening in a climate of caution where growth remains moderate, costs are still high, and margins are under pressure. In this context, companies are increasingly weighing salary recognition against budgetary control. Groups headquartered in France seem particularly reserved, with average increases limited to 2 per cent, down from the previous year, while subsidiaries of foreign groups operating in France are slightly more generous, reflecting sometimes more aggressive salary strategies internationally. 

At the sector level, differences are still small. Services, transportation, and distribution are expected to see increases of around 3 per cent, while industry and the technology, media, and telecommunications sectors are projected to reach approximately 3.2 per cent. According to Entrevue.fr, this comparative uniformity highlights a ceiling on wage policies, regardless of the specific dynamics of each sector.

Source: Entrevue.fr

In France, according to new research, 2026 is set to be the year of wage normalisation. Following two years dominated by inflation and broader increases, salary bumps are expected to stabilise at a median level of 3.1 per cent, Entrevue.fr reports. 

This real, but now targeted, growth will not affect all employees equally. A recent survey by the consulting firm WTW found that only 29 per cent of companies operating in France are still planning general increases this year, compared to more than six out of ten last year. 

This decline reportedly signals a shift in policy, with the goal changing from uniformly offsetting rising prices to focusing budgets on individual increases based on performance, skills, and the strategic contribution of employees. 

Entrevue.fr says that this individualised approach is becoming the dominant one in an economic context considered more constrained and uncertain.

WTW surveyed more than 900 companies operating in France, and its findings reveal a clear shift. Merit-based raises are now replacing collective increases, which are perceived as less effective in supporting organisational transformations. HR departments are favouring more nuanced decisions, seeking to retain key employees rather than distributing a global budget evenly. 

This trend is reportedly happening in a climate of caution where growth remains moderate, costs are still high, and margins are under pressure. In this context, companies are increasingly weighing salary recognition against budgetary control. Groups headquartered in France seem particularly reserved, with average increases limited to 2 per cent, down from the previous year, while subsidiaries of foreign groups operating in France are slightly more generous, reflecting sometimes more aggressive salary strategies internationally. 

At the sector level, differences are still small. Services, transportation, and distribution are expected to see increases of around 3 per cent, while industry and the technology, media, and telecommunications sectors are projected to reach approximately 3.2 per cent. According to Entrevue.fr, this comparative uniformity highlights a ceiling on wage policies, regardless of the specific dynamics of each sector.

Source: Entrevue.fr