In France, compulsory annual salary negotiations are being disrupted by the growing number of redundancy plans. As inflation returns to normal levels, mind RH sought to ascertain the impact of the economic backdrop on the pay rises negotiated at major groups, according to sector. Between 2024 and 2025, both the amounts negotiated and the proportion of companies granting them have fallen sharply, even before Donald Trump's announcement of tariffs.
In 2022, according to the Banque de France, the country’s central bank, companies were granting 5% pay rises on average as part of agreements resulting from compulsory annual negotiations (NAO), driven by a context of high inflation and industrial unrest. Three years on, the labour market is no longer marked by widespread manpower shortages, but by redundancy plans. Michel Houdebine, director of the research, studies and statistics office (DARES) at the French labour ministry, told the
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Article authors
Antoine Piel
Section Head at Mind HR