Business groups oppose 2027 labor cost measures

Business organizations in France, including Medef, Les Entrepreneurs, and U2P, have urged the government to drop parts of the 2027 social security financing bill (PLFSS) that they believe will significantly raise labor costs. They argue these measures could make it harder for companies to afford salary increases and may lead to financial strain.

Minimum wage already rising

The groups pointed out that the minimum wage in France had already been raised by 2.41% as of June 1, 2026. They also mentioned that inflation forecasts could lead to another increase as early as January 1, 2027, or even December 1, adding to the pressure on businesses.

Proposed changes to employer contributions

The PLFSS bill includes plans to extend the freeze on reductions in employer contributions and to include profit-sharing and participation in their calculation. This would be similar to how the value-sharing bonus is currently treated, increasing the financial burden on companies.

Estimated cost of proposed measures

According to the business groups, the proposed changes would add about 550 euros per employee per year in costs, totaling more than 11 billion euros annually. They warned that these charges could complicate salary negotiations and lead to social tensions, especially in an already challenging economic environment.

Call for alternative fiscal strategy

The organizations urged the government and lawmakers to abandon the provisions, arguing that public finances should be stabilized through spending control rather than increasing labor costs. Medef president Patrick Martin also warned on France Info about the risk of "chaos in companies" if the minimum wage and rising labor costs were implemented at the same time.