The government is maintaining the freeze on employer tax exemptions despite the increase in the minimum wage on June 1st.

Minister of Public Action and Accounts David Amiel confirmed on Friday that the budget for employer social security contribution reductions would remain unchanged on June 1st, despite the automatic increase in the minimum wage (SMIC) linked to inflation. Appearing on TF1, the minister defended the decision as "targeted" and "funded," in a budgetary context deemed particularly constrained by the government.

From June 1st, the minimum wage (SMIC) will increase by 2,41%, a consequence of the rise in inflation observed in recent months. This increase represents approximately €35 net per month for an employee paid the minimum wage. However, unlike previous increases, the government has chosen not to simultaneously increase the payroll tax exemptions that benefit businesses on low wages.

Employers denounce an increase in labor costs

This decision has sparked serious concern among employers' organizations. The president of the CPME (Confederation of Small and Medium-Sized Enterprises), Amir Reza-Tofighi, describes it as a "double whammy" for businesses, which he says are forced to increase both wages and employer contributions in an already fragile economic climate. He estimates that freezing the tax breaks could represent an additional burden of up to two billion euros for employers.

Several business leaders fear direct consequences for employment and wage increases. Carrefour CEO Alexandre Bompard, in particular, warned that a tightening of labor costs could force some companies to delay recruitment or reduce their hiring plans.

On the union side, the CFDT's general secretary, Marylise Léon, is calling for a resumption of wage negotiations in several professional sectors. The government, however, maintains its commitment to preserving public finances, while the executive branch cites a growing budgetary burden linked to international tensions and soaring energy prices.