The French government is considering a proposal to freeze the index point used to calculate the salaries of public sector employees in 2027, as part of efforts to achieve budget savings. Prime Minister Sébastien Lecornu described this as a "white year" for civil servants, which would prevent their gross salaries from increasing. This measure, according to Lecornu, could free up two billion euros for the state. The idea was outlined in an interview with the newspaper Le Figaro on September 17.
However, the Ministry of Economy has expressed caution, referring to the proposal as "billions of euros of non-spending." It clarified that the government has not committed to reindexing the index point, which determines salary adjustments based on inflation. The Ministry of Finance had previously ruled out a general increase for public sector workers in 2026, citing the high cost of a 1% revaluation, which would have required 2.4 billion euros—considered too expensive.
Public sector employees would face their fourth consecutive year of a frozen index point, marking the eighth such freeze in the past decade. Since 2017, their total salary revaluation has been about 5%, while inflation over the same period is expected to reach 24.17%, according to INSEE, France’s national statistics office. This has led to a significant erosion of purchasing power, with the general secretary of the CGT union, Sophie Binet, describing the situation as a "pauperization" of public sector workers. She noted that civil servants have already lost more than 16% of their purchasing power since 2017, and the freeze is expected to cause an additional 3% loss due to inflation.
The index point has been frozen since 2010, with only brief increases in 2016 and 2017. It was revalued twice in 2022 and 2023 by 3.5% and 1.5%, respectively, during a period of high inflation. While the 2027 freeze would prevent most public sector workers from receiving inflation-linked raises, some employees whose salaries are below the minimum wage will still receive a "differential allowance." This allowance, which affects 862,000 people, is paid annually by the state to ensure their wages meet the minimum wage level.
Critics, including trade unions, argue that this system creates inequalities depending on which ministry an employee works in and that the differential allowance is not taken into account when calculating pensions. The freeze is also being seen as a challenge in attracting young professionals to public sector roles, as starting salaries are often close to the minimum wage. The issue is expected to be discussed in a meeting between trade unions and the government in October. The CGT has called for a "black day" of protest on September 29, mobilizing both public and private sector workers to demonstrate against the proposed freeze.
French Government Proposes Salary Freeze for Public Sector Employees in 2027 Budget
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