Compensation is expected to continue rising in France in 2026, but in a much more selective manner. According to a survey conducted by the consulting firm WTW among more than 900 companies, the median salary increase is expected to be around 3,1%, a level close to that observed last year, but now driven primarily by individual decisions.
In reality, only 29% of companies still plan a collective pay increase, compared to more than six out of ten the previous year. The trend is towards individualization, with increases granted primarily based on performance, key skills, or internal transformation challenges, rather than a generalized compensation for inflation.
Salary transparency and more nuanced decision-making
The study also highlights the anticipated impact of the upcoming European directive on pay transparency. Nearly half of the companies surveyed plan to allocate a portion of their budget to equity adjustments, particularly to correct unjustified pay gaps between women and men. This internal adjustment strategy is gaining traction in a context of heightened regulatory scrutiny.
French companies, however, are more cautious than subsidiaries of foreign groups operating in France, with more limited average increases. Internationally, France is slightly below the European and North American average, while differences between sectors remain small.
