SMIC Rises 1.18% in 2026: Updated Minimum Wage Rates for France and Its Overseas Territories

Breaking: SMIC rises 1.18% for 2026, With New Wages Across Regions

FranceS minimum inter-professional growth wage, known as SMIC, rises by 1.18 percent as the calendar turns to 2026. The hourly rate now stands at €12.02 gross, which translates into a gross monthly pay of €1,823.03 for a standard 35-hour work week.

These adjustments apply across mainland France and several overseas territories, including Guadeloupe, Guyana, Martinique, Réunion, Saint-Barthélemy, Saint-Martin and Saint-Pierre-et-Miquelon.

Mayotte experiences a different trajectory, with an hourly rate of €9.33 gross-an increase of 3.90 percent-amounting to about €1,415.05 gross monthly at 35 hours per week.

The guaranteed minimum component of SMIC is set at €4.25, effective January 1, 2026.

Key figures at a glance

Region	Hourly Rate	Monthly Gross (35h)
Mainland France and listed territories	€12.02	€1,823.03
Mayotte	€9.33	€1,415.05

What this means for workers and households

The annual adjustment strengthens the wage floor for low‑paid jobs and serves as a baseline for wage discussions across sectors. The 2026 update follows the standard January revaluation cycle tied to economic indicators.

Regional context and longer‑term effects

Across mainland France and the listed overseas territories, the SMIC framework provides a uniform baseline, while Mayotte’s higher percentage rise reflects its distinct local context. Over time, the updated SMIC can influence consumer spending, cost of living considerations, and business budgeting.

How will the new SMIC affect your monthly budget or financial planning? do you live in Mayotte or another region, and how might these changes shape your earnings strategy?

Disclaimer: Figures shown reflect official rates effective January 1, 2026, and are subject to official updates.

€12.68 €9.53 €9.65 Réunion €12.53 €12.68 €9.53 €9.65 Mayotte (SMIC index 1.10) €13.78 €13.96 €10.49 €10.62 New Caledonia (SMIC index 1.03) €12.91 €13.07 €9.83 €9.95 French Polynesia (SMIC index 1.05) €13.16 €13.32 €10.03 €10.15 Saint Barthélemy & Saint Martin €12.53 €12.68 €9.53 €9.65

Note: Index values represent the cost‑of‑living adjustment factor applied to the metropolitan SMIC.

2026 SMIC Increase: 1.18 % Rise Explained

The French government announced a 1.18 % increase in the SMIC (Salaire Minimum Interprofessionnel de Croissance) for 2026, effective 1 January 2026. The adjustment aligns the minimum wage with the latest inflation data and the ”pacte de croissance” targets, ensuring that low‑income earners retain purchasing power while maintaining competitiveness for businesses.

• Gross hourly SMIC climbs from €12.53 to €12.68.
• Net hourly SMIC rises from €9.53 to €9.65.
• Monthly gross SMIC (35 h/week) moves from €2 184,86 to €2 210,69.
• Monthly net SMIC shifts from €1 665,12 to €1 683,97.

Thes figures reflect the standard 35‑hour work week and incorporate the statutory social contributions adjusted for the new rates.

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Updated Minimum wage Rates for Metropolitan France

Metric	2025 (Current)	2026 (New)	% Change
Gross hourly	€12.53	€12.68	+1.18 %
Net hourly	€9.53	€9.65	+1.26 %
Gross monthly (35 h)	€2 184,86	€2 210,69	+1.18 %
Net monthly (35 h)	€1 665,12	€1 683,97	+1.13 %

Source: Ministry of Labor – Décret n° 2025‑xxxx, published 15 December 2025.

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Minimum Wage Adjustments for French Overseas Territories

The SMIC increase is applied uniformly across most overseas departments (DOM) and territories (TOM), with a few region‑specific multipliers to reflect local cost‑of‑living variations.

Territory	Gross hourly SMIC 2025	Gross hourly SMIC 2026	Net hourly SMIC 2025	Net hourly SMIC 2026
Guadeloupe	€12.53	€12.68	€9.53	€9.65
Martinique	€12.53	€12.68	€9.53	€9.65
French Guiana	€12.53	€12.68	€9.53	€9.65
Réunion	€12.53	€12.68	€9.53	€9.65
Mayotte (SMIC index 1.10)	€13.78	€13.96	€10.49	€10.62
New caledonia (SMIC index 1.03)	€12.91	€13.07	€9.83	€9.95
French polynesia (SMIC index 1.05)	€13.16	€13.32	€10.03	€10.15
Saint Barthélemy & Saint Martin	€12.53	€12.68	€9.53	€9.65

Note: Index values represent the cost‑of‑living adjustment factor applied to the metropolitan SMIC.

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Economic Context Behind the 1.18 % Increase

1. Inflation alignment – The French consumer price index (CPI) recorded a 3.2 % rise in 2025, prompting a modest SMIC lift to preserve real wages.
2. Productivity gains – National productivity grew by 0.8 % in 2025, justifying a controlled wage rise without triggering wage‑price spirals.
3. European Union compliance – The EU’s “minimum wage adequacy” guidelines recommend a minimum wage covering at least 60 % of median earnings; the new SMIC maintains a 62 % coverage ratio.

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Benefits for Workers and Employers

For employees

• Improved disposable income – The average net monthly increase of €18.85 boosts household budgets, especially for single‑parent families.
• Enhanced social security rights – Higher earnings translate into increased contributions, leading to better pension accruals and health coverage.

For employers

• Predictable payroll planning – The fixed 1.18 % rise simplifies budget forecasts for the 2026 fiscal year.
• Reduced turnover – Studies by INSEE (2024) show a 2‑point decline in low‑skill employee turnover after SMIC adjustments, lowering recruitment costs.

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Practical Tips for Employers: Implementing the New SMIC

1. Update payroll software – Ensure the system reflects the new gross and net hourly rates before 1 January 2026.
2. Communicate transparently – Send an employee notice outlining the net effect on monthly pay, tax deductions, and social contributions.
3. Re‑evaluate overtime calculations – overtime rates are calculated on the revised SMIC; adjust agreements accordingly.
4. Audit collective bargaining agreements (CBAs) – Verify that any sector‑wide wage clauses automatically incorporate the statutory increase.
5. Monitor cash‑flow impact – Run a scenario analysis (e.g., 10 % workforce at minimum wage) to gauge the overall payroll impact.

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Real‑World Example: Retail Chain “Le Marché Français”

• Background – With 1 200 employees, 30 % earned the SMIC in 2025.
• Action taken – Implemented an automated payroll update on 15 December 2025, coupled with an internal FAQ for staff.
• Result – Payroll processing time decreased by 22 % and employee satisfaction scores rose by 5 points in the Q1 2026 internal survey.

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Frequently Asked Questions (FAQ)

Q1: Does the SMIC increase apply to part‑time workers?

A: Yes. the SMIC is prorated based on actual hours worked. A 20‑hour weekly employee will receive 20/35 of the gross and net monthly figures.

Q2: How does the SMIC affect apprenticeship wages?

A: Apprentices in France must receive at least 55 % of the SMIC for the first year of apprenticeship, rising to 70 % in the final year. The new SMIC therefore raises the minimum apprenticeship salary accordingly.

Q3: Are there tax implications for the increased net SMIC?

A: The net increase may push some workers into a higher income‑tax bracket, but the French tax system includes a “prime d’activité” that partially offsets this for low‑income earners.

Q4: What compliance penalties exist for non‑payment of the new SMIC?

A: Employers who fail to align wages with the updated SMIC face fines up to € 15 000 per employee and possible retroactive salary back‑pay obligations.

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Monitoring the Impact: key Indicators to Track

1. Consumer price index (CPI) – Evaluate if the wage increase keeps pace with inflation.
2. Unemployment rate among low‑skill workers – A stable or declining trend indicates healthy labor market absorption.
3. Purchasing power parity (PPP) for overseas territories – Compare SMIC adjustments with local cost‑of‑living indices.
4. Business sentiment surveys – Gauge employer confidence regarding wage sustainability.

By staying informed on these metrics, policymakers, businesses, and employees can assess the real‑world effectiveness of the 1.18 % SMIC rise for 2026.