Evolution of negotiated wage - 2026-Q1
Published on 3rd of June 2026
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Negotiated wages continue to slow at the start of 2026
In the first quarter of 2026, sectoral minimum wages increased by 1.1% year-on-year, compared with 1.4% in the fourth quarter of 2025, while the average negotiated increase in company-level agreements stood at 1.6%, down from 1.8% in the fourth quarter of 2025 (Table 1). Most wage agreements were signed before the outbreak of the conflict in Iran, in a context of contained inflation (0.9% in 2025) and a slowing rise in the minimum wage, which increased by 1.2% on January 1, 2026. This moderation also follows a period (since late 2023) of overall catch-up in purchasing power losses resulting from the inflation surge (Figure 1). The CPE indicator (which measures actual compensation paid and includes bonuses and composition effects) also grew at a more moderate pace at the beginning of 2026: year-on-year, it rose by 1.9% in the first quarter of 2026, compared with 2.0% at the beginning of 2025.
Table 1 - Year-on-year change in negotiated wages in sectors and companies![]()
(changes over four quarters - in %)
| Q22025 | Q32025 | Q42025 | Q12026 | |
| Sector-level agreements | 1.7 | 1.6 | 1.4 | 1.1 |
| Company-level agreements | 2.0 | 1.8 | 1.8 | 1.6 |
| Minimum wage (Insee) | 2.0 | 2.0 | 0.7 | 1.2 |
| Compensation per employee (CPE) (Insee) | 2.0 | 2.1 | 2.0 | 1.9 |
| CPI inflation (Insee) | 0.8 | 1.0 | 0.9 | 1.0 |
Figure 1: Year-on-year change in negotiated wages in sectors and companies![]()
(changes over four quarters - in %)
Distribution of negotiated wage increases
Within sectors, in the first quarter of 2026, negotiated increases were stronger for minimum wage levels closest to the statutory minimum wage (1.2% for minima below 1.2 times the minimum wage) than for higher minimum levels (0.8% for minima above 1.6 times the minimum wage) (Figure 2), whereas differences in wage growth by minimum level had tended to narrow during the disinflation period.
However, differences in negotiated increases across sectors have recently narrowed around 2%: 60% of sector-level agreements provide for increases between 1% and 2% (compared with 41% a year earlier, Figure 3). The proportion of agreements providing for increases of less than or equal to 1% is rising: 20% of agreements include such increases in the first quarter of 2026, compared with 5% a year earlier.
However, differences in negotiated increases across sectors have recently narrowed around 2%: 60% of sector-level agreements provide for increases between 1% and 2% (compared with 41% a year earlier, Figure 3). The proportion of agreements providing for increases of less than or equal to 1% is rising: 20% of agreements include such increases in the first quarter of 2026, compared with 5% a year earlier.
Figure 2: One-year change in wages negotiated in sector-level agreements by wage level (%)
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Figure 3: Distribution of negotiated wage increases in sector-level agreements (%)
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Among agreements signed at company level, the distribution of wage increases shows, as with sector-level agreements, a tightening and appears more concentrated around 2% in the first quarter of 2026 (Figure 4).
62% of agreements provide for increases between 1% and 2% in the first quarter of 2026, compared with 52% in the fourth quarter of 2025. 21% of agreements mention wage increases of less than or equal to 1%, compared with 8% one year earlier.
62% of agreements provide for increases between 1% and 2% in the first quarter of 2026, compared with 52% in the fourth quarter of 2025. 21% of agreements mention wage increases of less than or equal to 1%, compared with 8% one year earlier.
Figure 4: Distribution of negotiated wage increases in company-level agreements (%)
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Methodology
The negotiated wage indicators are constructed using wage agreements published on the Légifrance.fr website, which lists all agreements signed at both sector and company levels covering private-sector employees.
In the case of sectors, the average increase is calculated using data from agreements signed in more than 300 sectors over the period 2006-2025 (together covering nearly 15 million private-sector employees). It is obtained as follows. For a given sector, the average of the year-on-year changes in all minimum wages in that sector's pay scale is first calculated (weighted by the distribution of employees across wage levels within the sector). Minimum wages are those in force at the effective dates of the various sector agreements (for example, if an agreement is signed in January of year t providing for a new pay scale in July of the same year, the latter date is taken as the effective date for the new scale and for calculating changes). In the absence of a revision of minimum wages after one year, the year-on-year change is zero. The aggregate indicator for all sectors is then calculated as the average of these year-on-year changes across all sectors in the sample, weighted by their annual workforce. This aggregate indicator is also the one used for France in the ECB wage tracker and in the ECB negotiated wages series.
In the case of companies, the base wage increase (excluding bonuses) is that mentioned in the company agreement and measured at its effective date. Only what is explicitly stated in the agreement as a general increase and/or an envelope for individual increases is retained (these individual increases generally provide differentiated base wage increases at employee level based on annual evaluations). Changes in remuneration outside base wages, such as bonuses (attendance, seniority, etc.), are not taken into account. The increase considered in an agreement is the total base wage increase envelope (i.e. general increases plus individual increases). When the agreement provides for increases by employee category within the company, an average of these category-based increases is first calculated for that agreement. The aggregate indicator is then computed as a simple average of wage increases across all company agreements taking effect in a given quarter (in 2025, nearly 5,000 agreements signed by private-sector companies-covering around 2 million employees-were used to calculate the average and the distribution).
The indicators presented in this note relate to wages negotiated in sector-level and company-level agreements. Additional statistics on actual wage developments are published by the Ministry of Labour and INSEE (see Insee for a detailed presentation of the indicators available in France). In Table 1 and Figure 1, inflation is calculated as the average quarterly year-on-year change in the consumer price index (INSEE), and changes in the minimum wage (SMIC) are calculated as its average quarterly year-on-year change.
In the case of sectors, the average increase is calculated using data from agreements signed in more than 300 sectors over the period 2006-2025 (together covering nearly 15 million private-sector employees). It is obtained as follows. For a given sector, the average of the year-on-year changes in all minimum wages in that sector's pay scale is first calculated (weighted by the distribution of employees across wage levels within the sector). Minimum wages are those in force at the effective dates of the various sector agreements (for example, if an agreement is signed in January of year t providing for a new pay scale in July of the same year, the latter date is taken as the effective date for the new scale and for calculating changes). In the absence of a revision of minimum wages after one year, the year-on-year change is zero. The aggregate indicator for all sectors is then calculated as the average of these year-on-year changes across all sectors in the sample, weighted by their annual workforce. This aggregate indicator is also the one used for France in the ECB wage tracker and in the ECB negotiated wages series.
In the case of companies, the base wage increase (excluding bonuses) is that mentioned in the company agreement and measured at its effective date. Only what is explicitly stated in the agreement as a general increase and/or an envelope for individual increases is retained (these individual increases generally provide differentiated base wage increases at employee level based on annual evaluations). Changes in remuneration outside base wages, such as bonuses (attendance, seniority, etc.), are not taken into account. The increase considered in an agreement is the total base wage increase envelope (i.e. general increases plus individual increases). When the agreement provides for increases by employee category within the company, an average of these category-based increases is first calculated for that agreement. The aggregate indicator is then computed as a simple average of wage increases across all company agreements taking effect in a given quarter (in 2025, nearly 5,000 agreements signed by private-sector companies-covering around 2 million employees-were used to calculate the average and the distribution).
The indicators presented in this note relate to wages negotiated in sector-level and company-level agreements. Additional statistics on actual wage developments are published by the Ministry of Labour and INSEE (see Insee for a detailed presentation of the indicators available in France). In Table 1 and Figure 1, inflation is calculated as the average quarterly year-on-year change in the consumer price index (INSEE), and changes in the minimum wage (SMIC) are calculated as its average quarterly year-on-year change.
Definitions of wage indicators
- Statutory minimum wage (SMIC): the legal hourly minimum wage below which an employee cannot be paid. As of 1 January 2026, the gross hourly SMIC is set at €12.02.
- Wages negotiated in sector-level agreements: sector agreements most often concern revisions to grids of collectively agreed minimum wages. A collectively agreed minimum is the wage below which an employee cannot be paid, given their position in the job classification grid defined by the relevant collective agreement. These minima are set through collective agreements signed by social partners at sector level. If a collectively agreed minimum is below the SMIC, the SMIC applies to the corresponding positions (source: Directorate-General for Labour).
- Wages negotiated in company agreements: agreements negotiated at company level are mostly concluded during mandatory annual negotiations (NAO). They generally include increases in base wages (as well as some variable compensation elements, which are not included in the indicators presented here).
- Base monthly wage (SMB): gross wage before deduction of employee social contributions and before payment of social benefits. It excludes bonuses and overtime. Its amount generally corresponds to the first line on an employee's payslip (source: INSEE). It is freely set between employer and employee (usually via the employment contract), subject to the SMIC, collectively agreed minima, and any applicable company agreement.
- Average compensation per employee (CPE): measured by INSEE in national accounts as the ratio of the total gross wage bill paid by all employers to the total number of employees. The wage bill includes all elements of total gross remuneration (base wage, variable components such as bonuses and 13th-month payments, overtime, profit-sharing, and other elements that are not strictly wages, such as short-time work compensation). The SMPT therefore reflects changes in base wages, bonuses, overtime, and also changes in the structure of remuneration (linked to hiring and separations, job creation and destruction, career progression, etc.)
- Wages negotiated in sector-level agreements: sector agreements most often concern revisions to grids of collectively agreed minimum wages. A collectively agreed minimum is the wage below which an employee cannot be paid, given their position in the job classification grid defined by the relevant collective agreement. These minima are set through collective agreements signed by social partners at sector level. If a collectively agreed minimum is below the SMIC, the SMIC applies to the corresponding positions (source: Directorate-General for Labour).
- Wages negotiated in company agreements: agreements negotiated at company level are mostly concluded during mandatory annual negotiations (NAO). They generally include increases in base wages (as well as some variable compensation elements, which are not included in the indicators presented here).
- Base monthly wage (SMB): gross wage before deduction of employee social contributions and before payment of social benefits. It excludes bonuses and overtime. Its amount generally corresponds to the first line on an employee's payslip (source: INSEE). It is freely set between employer and employee (usually via the employment contract), subject to the SMIC, collectively agreed minima, and any applicable company agreement.
- Average compensation per employee (CPE): measured by INSEE in national accounts as the ratio of the total gross wage bill paid by all employers to the total number of employees. The wage bill includes all elements of total gross remuneration (base wage, variable components such as bonuses and 13th-month payments, overtime, profit-sharing, and other elements that are not strictly wages, such as short-time work compensation). The SMPT therefore reflects changes in base wages, bonuses, overtime, and also changes in the structure of remuneration (linked to hiring and separations, job creation and destruction, career progression, etc.)
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Updated on the 3rd of June 2026