According to an annual study by the firm RH Alixio, companies are planning salary increases of 2.3% for 2027. However, these figures are still intentions and not yet confirmed actual raises. In 2026, employers had initially planned for a 2.1% increase, but the final result was 1.9%. This year, more companies are focusing on individual salary increases, with 50% of employers planning such measures, compared to only 20% in 2026. The Alixio firm notes that this shift reflects a move from collective salary policies to more personalized approaches. Despite this, the rise in inflation in 2026—reaching 2.4% in August, according to INSEE, France’s national statistics institute—could give unions leverage to push for collective raises during the NAO (Négociation Annuelle Obligatoire), which are mandatory annual negotiations between employers and employees. The study also indicates that employees have largely recovered from the inflation shock of 2022 and 2023. Since 2020, cumulative salary increases have either matched or surpassed inflation, especially for those with lower wages. However, workers earning above the minimum wage may have experienced different purchasing power trends. For 2027, employers are more optimistic about inflation, expecting it to range between 1.5% and 2%, with nearly one in seven companies believing the inflationary trend is temporary. Certain sectors are planning higher salary increases than others. Technology, energy, metallurgy, and transport, tourism, and leisure industries are among those with the highest planned raises. In contrast, industry and commerce/distribution sectors are expected to offer smaller increases. The study highlights that salary transparency is becoming a key factor in negotiations. A new bill has been submitted to the Council of Ministers to align with a European directive requiring greater transparency in how companies determine compensation. Employees will be able to request average salary levels for comparable roles, and larger companies must publish data on gender pay gaps for equal work. If a gap of 5% or more is found to be unjustified, companies must take corrective action. Although the bill has not yet passed through Parliament, many companies are already adjusting their policies in anticipation. According to Alixio, companies are preparing for these changes by increasing budgets for promotions and addressing pay gaps. The budget for cadre (managerial) promotions is expected to rise significantly, from 0.13% to 0.88%. Additionally, 55% of employers now plan specific salary catch-up budgets for both men and women, up from 45% last year. These changes reflect a growing emphasis on fairness and transparency in compensation practices.