French wage deals point to pay hikes close to 3.5%, says central bank

Wage growth in France depends in large part on annual negotiations at a sector or company level that take place between October and April. Sector-level deals so far suggest wage gains would average 3.3%, down from 5% seen in early 2023, while company-level deals were seen at 3.4% after slightly more than 4% a year ago, the Bank of France said in a study on recent wage agreements.

Annual wage negotiations in France suggest the pace of pay hikes will ease this year, but will exceed the expected inflation rate, France's central bank said on Wednesday. Wage growth in France depends in large part on annual negotiations at a sector or company level that take place between October and April.

Sector-level deals so far suggest wage gains would average 3.3%, down from 5% seen in early 2023, while company-level deals were seen at 3.4% after slightly more than 4% a year ago, the Bank of France said in a study on recent wage agreements. Though wage gains would exceed inflation, the fact they are lower than in previous years supported the central bank's forecast that inflation will slow to around 2% by year end, it said.

The study analysed 117 sector-level deals for 2024 covering six million private-sector workers and 1,500 company-level deals covering a further 600,000 workers.

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