Salary Increases in 2027: How Much Can You Expect?
13 August 2026 · 4 min reading time
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Salary surveys by Mercer and WTW indicate that French companies are planning salary increase budgets of 2.5% to 3% for 2027. However, this does not mean every employee will receive the same raise: these budgets will be allocated differently across companies and individual employees.
How much could salaries increase in France in 2027?
The first estimates available in summer 2026 are broadly consistent. Mercer surveyed 277 companies operating in France for its annual salary negotiations study and estimated a median budget of 2.5% for 2027. WTW forecasts 3% in its Salary Budget Planning survey.
| Survey | Projected budget for 2027 | Indicator |
|---|---|---|
| Mercer, salary negotiations survey | 2.5% | Estimated median budget. |
| WTW, Salary Budget Planning | 3% | Projected median budget in France. |
These are projected budgets, not an official increase applicable to all salaries in France. A company with a 3% budget could, for example, grant a modest general increase and allocate the remainder to promotions, hard-to-fill positions or salaries considered below market rates. Two employees at the same company could therefore receive very different raises.
These budgets are not final. Company performance, inflation and economic conditions could still influence decisions before 2027.
Will salary increases be mandatory for all employees?
In the private sector, no legal provision requires employers to grant every employee an annual raise. Employers can introduce a general increase, focus on specific roles or grant individual raises only.
However, companies must adjust salaries when they fall below an applicable mandatory threshold:
- The French minimum wage, known as the SMIC.
- The minimum salary established by the applicable collective bargaining agreement.
- A salary level required under a collective agreement applicable within the company.
Only employees whose pay falls below the new minimum must receive an adjustment. Employees already earning above that threshold are not automatically entitled to the same increase.
Mandatory annual negotiations may also result in a salary agreement at companies subject to those requirements. However, opening negotiations does not guarantee that a general raise will be approved.
Who could receive an above-average raise?
The announced budgets suggest companies will prioritize targeted increases. A promotion, a change in role, additional responsibilities or clearly demonstrable results could justify an above-average raise. Employers will also seek to retain workers with scarce skills and employees in positions that are difficult to fill.
A salary adjustment may also be granted when an employee’s pay no longer reflects market rates or the salaries of colleagues in comparable situations. Equal pay requirements must still be respected, even when raises are awarded individually.
What rules apply to temporary agency workers in 2027?
Temporary agency workers are not entitled to a specific annual salary increase. However, their pay must be adjusted if the French minimum wage, the applicable minimum under a collective bargaining agreement or the salary for an equivalent position at the client company increases.
When qualifications and duties are equivalent, a temporary worker cannot be paid less than an employee of the client company would receive after completing their probationary period. This comparison covers basic salary as well as job-related bonuses and benefits included in the reference compensation.
An increase in gross pay also affects the end-of-assignment allowance and compensation for paid leave. Both are calculated based on the gross earnings received during the assignment. More details are available in our guide to calculating temporary workers’ pay.
Will the French minimum wage and public-sector salaries increase in 2027?
The French minimum wage will be adjusted on January 1, 2027, but it is too early to determine the new amount. The adjustment depends on legally defined indicators and is unrelated to the 2.5% to 3% salary budgets announced by private companies.
Another automatic increase remains possible during the year if the relevant price index rises by at least 2% compared with the level used for the previous adjustment. The government may also decide to grant an additional discretionary increase. Until year-end figures become available, current rates remain those presented in our article on the French minimum wage in 2026.
For public-sector employees, no general salary increase for 2027 has been approved as of this article’s latest update. However, an employee’s pay may still rise following progression to a higher pay step or grade, a promotion or measures specific to their professional category. Any increase in the public-sector salary index would require a government decision.
The 2.5% to 3% range discussed above applies to private-sector salary budgets and cannot be extended to public-sector employees.
How do you calculate a salary increase?
To calculate the monthly gross increase, multiply the current salary by the percentage increase, then divide the result by 100:
Salary increase = current salary × percentage increase ÷ 100
For a gross monthly salary of €2,500 and a 3% raise, the calculation is:
2,500 × 3 ÷ 100 = €75New salary: 2,500 + 75 = €2,575 gross per month.
Examples of 2.5% and 3% salary increases
| Current gross monthly salary | Increase at 2.5% | New salary | Increase at 3% | New salary |
|---|---|---|---|---|
| €1,900 | €47.50 | €1,947.50 | €57 | €1,957 |
| €2,000 | €50 | €2,050 | €60 | €2,060 |
| €2,500 | €62.50 | €2,562.50 | €75 | €2,575 |
| €3,000 | €75 | €3,075 | €90 | €3,090 |
| €4,000 | €100 | €4,100 | €120 | €4,120 |
These examples illustrate individual salary increases. They do not show how a company will distribute its overall salary budget among employees.
Will a salary increase actually improve purchasing power?
That depends on inflation. Purchasing power improves only when salaries rise faster than prices. Otherwise, the increase shown on a payslip may be partially or entirely offset.
For example, a 2.5% salary increase combined with 2% inflation would result in a real gain of approximately 0.49%:
(1.025 ÷ 1.02 − 1) × 100 = approximately 0.49%
The 2% inflation rate is used solely to illustrate the calculation. It is not an inflation forecast for 2027.
How should you ask for a raise in 2027?
Inflation alone rarely persuades an employer. A stronger approach is to focus on what has changed since the last salary discussion: results achieved, new duties, additional responsibilities or a pay gap compared with similar positions.
Before the meeting, prepare three things:
- Specific achievements, supported by figures where possible.
- The requested amount or salary range.
- Clear, practical reasons supporting the request.
Timing also matters. At many companies, budgets are finalized before annual performance reviews. If the request is submitted after the budget has already been allocated, there may be little room for negotiation.
If an immediate increase in basic salary is not possible, the discussion can cover a bonus, training, career progression or another benefit. In every case, aim to leave with a clear answer about what can be offered, under what conditions and within what timeframe.
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