To what extent will wages increase in 2026?
A report suggests that wage increases in French companies for 2026 are expected to outpace inflation, with a median increase budgeted at 2%.
A recent report by LHH, highlighted by Le Figaro, indicates an anticipated increase in wages for the year 2026 in France. Although companies faced a challenging 2025, they are entering 2026 with a modest optimism for economic recovery, which is hoped to lead to a rise in employment levels. This cautious optimism is reflected in their planned salary budgets, which will remain above the inflation rate.
The report reveals that the median budget allocation for wage increases in 2026 is forecasted to be around 2%. This figure, while a positive sign for employees, is slightly lower than previous expectations. It suggests that businesses are still prioritizing financial prudence, likely due to lingering uncertainties in the economic landscape despite the expected uptick in activity. Companies seem to be carefully balancing the need to attract talent and retain employees with their overall fiscal responsibilities.
Looking ahead, the situation is set against a backdrop of fluctuating economic conditions and inflationary pressures. While the anticipated wage increase is a potential positive development for workers, it also highlights the challenging environment in which French employers operate. The findings may influence employee negotiations in the coming year and will be critical as companies navigate this gradual recovery phase while keeping a cautious eye on their financial health.