Changes to minimum social wage

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Changes to minimum social wage
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Date:
23 Jan 2019

ILO, Employment & Benefits

By:
Guy Castegnaro, Ariane Claverie

The Law of 21 December 2018 amending Article L 222-9 of the Labour Code was published in Memorial A 1166 on 21 December 2018 (for further details please see "Minimum social wage rates set to increase"). The law took effect on 1 January 2019.

New monthly wage rates

Article L 222-9 of the Labour Code, as amended, provides that the monthly minimum social wage for a non-qualified employee paid per month is fixed – as of 1 January 2019 until the next adjustment is made pursuant to Article L 222-2 of the Labour Code – at €254.31 (with the index value of 100 weighted for the cost of living as of 1 January 1948).

Thus, as of 1 January 2019 the new gross amounts of the monthly minimum social wage and the applicable legal thresholds and ceilings are as follows.

Wages, legal thresholds and ceilings Gross amount as of 1 January 2019 (814.40 index)
Monthly minimum social wage (Articles L 222-9 and L 223-1 of the Labour Code).
  • Non-qualified employees – €2,071.10
  • Qualified employees – €2,485.32
  • Employees aged 17 to 18 years old – €1,656.88
  • Employees aged 15 to 17 years old – €1,553.33

Transactional indemnity for the improper termination of an employment contract.

Damages and interest for unfair dismissal as set out by the labour courts.

Voluntary indemnity for resignation or termination by mutual agreement (Section 115(9) of the Income Tax Act).

  • Exempt from tax up to €24,853.20 (12 times the minimum social salary)
Minimum starting monthly salary for a seven to 12-month trial period (Article L 121-5(2) of the Labour Code).
  • €4,365.18 (no change)
Minimum gross annual salary required to be paid on completion of a contract to apply a non-compete clause (Article L 125-8(3) of the Labour Code).
  • €55,518.22 (no change)