2026 is shaping up to be the year of wage normalization for French companies. After two years marked by inflation and broader increases, salary hikes are expected to stabilize at a median level of 3,1%. This represents real, but now targeted, growth, which will not affect all employees equally. According to a recent survey by the consulting firm WTW, only 29% of companies operating in France are still planning general increases this year, compared to more than six out of ten last year. This decline signals a shift in policy. The goal is no longer to uniformly offset rising prices, but to focus budgets on individual increases based on performance, skills, and the strategic contribution of employees. This individualized approach is becoming the dominant one, in an economic context considered more constrained and uncertain.
The gradual end of general increases
The survey, conducted among more than 900 companies operating in France, reveals a clear shift. Merit-based raises are now replacing collective increases, which are perceived as less effective in supporting organizational transformations. Human resources departments are favoring more nuanced decisions, seeking to retain key employees rather than distributing a global budget evenly. This trend is occurring within a climate of caution. Growth remains moderate, costs are still high, and margins are under pressure. In this context, companies are increasingly weighing salary recognition against budgetary control. Groups headquartered in France appear particularly reserved, with average increases limited to 2%, down from the previous year. Conversely, subsidiaries of foreign groups operating in France are slightly more generous, reflecting sometimes more aggressive salary strategies internationally. At the sector level, differences remain small. Services, transportation, and distribution are expected to see increases of around 3%, while industry and the technology, media, and telecommunications sectors are projected to reach approximately 3,2%. This relative uniformity confirms a kind of ceiling on wage policies, regardless of the specific dynamics of each sector.
Pay equity and regulatory pressure
Alongside this increasing individualization, another factor is impacting compensation policies. The European directive on pay transparency, which must be transposed into French law by June, is pushing companies to review their internal practices. Nearly 46% of them plan to allocate part of their payroll budget to equity adjustments, particularly to correct unjustified disparities between women and men. This proportion is higher than last year, a sign of increased awareness of compliance and reputational issues. Internationally, France lags slightly behind. The median increase of 3,1% remains lower than the European average, estimated at 3,2%, as well as the levels observed in Germany, Canada, and the United States. This gap reflects both the caution of French companies and a less dynamic macroeconomic context than in some comparable economies. Ultimately, 2026 confirms a turning point. Salary increases are not disappearing, but they are changing in nature. More selective and conditional, these measures reflect a shift in the debate, which no longer focuses on the overall volume of increases, but on their distribution. For employees, salary progression will now depend less on the general context than on their individual position within the organization.
