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COST OF LIVING

How would a €1,600 minimum wage in France compare to the rest of Europe?

France's left-wing alliance Nouveau Front Populaire has made headlines with its economic policies, especially a pledge to raise minimum wage to €1,600 a month - but is that actually that high? Here's how France’s minimum wage stacks up against European neighbours.

A woman empties her trolley at the till of a supermarket in Hazebrouck, northern France
A woman empties her trolley at the till of a supermarket in Hazebrouck, northern France. (Photo by PHILIPPE HUGUEN / AFP)

Part of the election manifesto of the Nouveau Front Populaire – an alliance of France’s four biggest left-wing parties – is an increase in the take home minimum wage to €1,600 per month.

Now it’s still far from certain that the group will get itself into a position to implement this or any of its other policies as France’s political deadlock continues but let’s take a look at how the proposals stack up.

The current minimum wage in France (known as the Smic) for an employee working full-time hours, is €1,766.92 a month (€11.65 per hour) before taxes and social charges – or €1,398.70 (€9.22/hr) take home.

Explained: The left alliance’s programme for government

In total, 22 of 27 member nations of the European Union have a statutory minimum wage, as does former member the United Kingdom of Great Britain and Northern Ireland. 

Austria, Denmark, Sweden, Italy and Finland do not have a national minimum wage. Instead, wage levels are set on a sector-by-sector basis via collective bargaining between employers and trades unions, and may include additional benefits depending on the laws of each country.

Similarly, European Free Trade Association (EFTA) countries Norway, Switzerland and Iceland do not have a national minimum wage.

What about the countries that do have a minimum wage?

Germany’s minimum wage increased on January 1st from €12 to €12.41 per hour. It is expected to rise again, to €12.82/hr on January 1st, 2025, assuming the government acts on recommendations (which it usually does).

That translates to a full-time minimum monthly wage before tax of €2,085. Germany is one of four EU countries – along with Luxembourg (€2,571), Ireland (€2,146) and Netherlands (€2,070) – where the minimum gross monthly wage is above €2,000, according to OECD figures.

Minimum wages in Spain, meanwhile, were revised upwards five percent on January 1st to €1,134 per month for general workers working full-time hours. 

In other European Union countries, the minimum monthly wage ranges from a high of €2,571 per month in Luxembourg, down to €477 in Bulgaria. EU candidate country North Macedonia’s minimum wage, meanwhile, is €360.

In fact, the minimum wage is €1,000 or lower in 14 EU member states that have a nationally mandated minimum wage. 

Here’s a list of the eight EU member states with monthly minimum wage levels before tax above €1,000:

  • Luxembourg – €2,571
  • Ireland  – €2,146
  • Germany – €2,085
  • Netherlands – €2,070
  • Belgium – €1,994
  • France – €1,767
  • Spain – €1,323
  • Slovenia – €1,254

Non-EU nations

For workers over 21, the minimum wage in the UK rose from £10.41 per hour to £11.44 on April 1st – equivalent to £1,735 per month before tax for anyone working full-time hours.

In USA, the federal minimum wage is $7.25/hr. However numerous states have their own minimum wage laws, which usually set a higher rate – in cases where employees are subject to both the state and federal minimum wage laws, they are entitled to the higher of the two minimum wages.

Meanwhile, in Australia, the National Minimum Wage was set at AUS$24.10 per hour on July 1st, or AU$915.90 per 38-hour week (before tax).

The minimum federal monthly wage in Canada was set at CAD$2,035 per month on April 1st, 2024, but workers there are subject to minimum wage levels set by their respective province or territory.

All of which is to say that while the Nouveau Front Populaire’s proposed minimum wage increase is generous, it is not insanely so and would not make France a European outlier on minimum wages.

But…

Comparing minimum wage levels between nations is not just a matter of quoting figures. Differences in the cost of living and taxation, not to mention different currencies and exchange rates for those nations outside the eurozone, render the exercise more complicated than a simple number comparison.

Which brings us to…

EU Minimum Wage Directive

In November 2024, the European Union’s Adequate Minimum Wage Directive comes into effect.

It says: “Member states may use indicative reference values commonly used at international level such as 60 percent of the gross median wage and 50 percent of the gross average wage, and/or indicative reference values used at national level.”

France’s current minimum wage of €1,766.92 per month for full-time workers is, according to recent estimates, 60.9 percent of the country’s monthly median wage before tax, meaning that – even before the EU directive comes into effect – it is meeting its expected obligations without having to increase minimum wage levels.

Portugal (€957 per month minimum wage) and Slovenia are the only other EU nations to pass the 60 percent median bar for their minimum wage levels, along with long-standing EU candidate country Turkey.

Germany’s minimum wage, despite appearing to be relatively high in straight euro terms, is only 52.6 percent of the median level, according to OECD calculations, while Luxembourg’s was 54.2 percent, and Ireland’s 47.5 percent.

Here’s another look at that list of the eight EU member states with monthly minimum wages above €1,000, with the ratio to that country’s median wage:

  • Slovenia – €1,254 (61.7 percent of the median wage)
  • France – €1,767 (60.9 percent)
  • Luxembourg – €2,571 (54.2 percent)
  • Germany – €2,085 (52.6 percent)
  • Spain – €1,323 (49.5 percent)
  • Ireland  – €2,146 (47.5 percent)
  • Netherlands – €2,070 (46.1 percent)
  • Belgium – €1,994 (40.9 percent)

The UK’s minimum wage, for the record, comes in at 58 percent.

This comparison of minimum wages is still open to interpretation and criticism. The International Labour Organisation said: “These ratios can be misleading when they are interpreted too literally.”

Meanwhile, the OECD has said that minimum wages must be revised regularly to cope with inflation and protect standards of living among those lower-paid workers. 

Salary conditions

According to European statistics agency Eurostat, the highest median gross hourly earnings in 2018 – the last available year for earnings – were recorded in Denmark (€27.2), Luxembourg (€19.6) and Sweden (€18.2).

By contrast, the lowest median gross hourly earnings were registered in Hungary (€4.4), Romania (€3.7) and Bulgaria (€2.4). 

In other words, across EU Member States, the highest national median gross hourly earnings were 11 times as high as the lowest expressed in euros.

In total, across the EU, some 15.3 percent of employees in 2018 were classed as low-wage earners – that is to say employees who earn two-thirds or less of national median gross hourly earnings, according to Eurostat. Again, there were huge nation-by-nation ranges involved. Latvia (23.5 percent), Lithuania (22.3 percent) and Estonia (22.0 percent) saw the highest proportion of low-wage earners. 

By contrast, less than 10 percent of employees were low wage earners in Denmark (8.7 percent), France (8.6 percent), Italy (8.5 percent), Finland (5.0 percent), Portugal (4.0 percent) and Sweden (3.6 percent), according to Eurostat figures.

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LIVING IN FRANCE

Explained: What is the law in France on prostitution

As the European court of human rights upholds France's laws on prostitution, here's a look at what the law says on the buying and selling of sex.

Explained: What is the law in France on prostitution

On Thursday the European Court of Human Rights ruled in favour of a French law from 2016 that radically overhauled the country’s laws on prostitution.

So what is the position now in the country that became famous for its legalised brothels, immortalised in the works of painters including Toulouse-Lautrec, Ingrès and Manet? 

History

It was Napoleon who laid out France’s long-standing legal code on lawful but regulated prostitution which saw state-sanctioned brothels known as maisons de tolérance or maisons close opening up in French towns and cities.

The legal position in France remained for a long time that prostitution was legal – albeit under tightly controlled conditions; registered brothels which were ‘discreet’ in appearance, prostitutes who were also registered and subject to regular medical inspections.

However in the period after World War II a series of laws were passed that first outlawed brothels and then criminalised behaviour including soliciting for sex, pimping and sex tourism.

The 2016 law

In 2016 a radical shakeup of the law was proposed, aimed at shifting the balance of power in favour of the people (mostly women) who sell sex.

It first repealed some older laws including the ‘Sarkozy law’ introduced in 2003 that made it a criminal offence to “be present wearing revealing clothing at a location known to be used for prostitution”.

But the main thrust of the law was to make it illegal to buy sex – but not illegal to sell sex, or to solicit it.

The idea was to remove the fear of criminalisation for people selling sex and therefore remove some of the barriers to people seeking help – for example to report a crime. The bill also came with a package of measures designed to help people working as prostitutes to leave the profession, if they want to, and enable them to leave exploitative or dangerous situations. 

It also included measures to give residency cards to the estimated 30,000 foreign people working as prostitutes in France – it is estimated that around 80 percent of sex workers in France are foreigners, the majority from eastern Europe or Africa.

Has it worked?

The intention was undoubtedly good, but many argue it has not worked – including the group of 20 sex workers who took France to the European Court of Human Rights over the law.

They say that criminalising customers means that sex workers are forced to work in more isolated and therefore dangerous places and that the drop in custom means that sex workers are being forced to accept customers that they might in the past have turned away.

The continuing ban on brothels means that sex workers must work alone, which raises their level of risk.

The main French prostitutes union Strass says: “It’s been a catastrophic law for our security and our health.”

However, the European judges rules that there is no evidence that the law itself was making sex work unsafe.

Judges said they were “fully aware of the undeniable difficulties and risks to which prostituted people are exposed while exercising their activity”, including their health and safety.

But they added that these were “already present and observed before the adoption of the law” in 2016, being attributed at the time to the since-repealed law against soliciting.

“There is no consensus on the question of whether the negative effects described by the claimants are directly caused by the… criminalisation of buying sexual acts, or their sale, or are inherent or intrinsic to the phenomenon of prostitution… or a whole array of social and behavioural factors,” the judges said.

So what exactly does the law say now?

Buying sex is illegal, punishable by a fine of up to €1,500, rising to €3,750 for repeat offenders. This applies whatever the situation – street prostitution, in a brothel or massage parlour or via an online transaction. 

Clubs including fetish clubs and swingers clubs are legal.

How strictly this law is enforced varies widely according to both place and time.

Selling sex is legal, as is soliciting for sex, however owning or operating a brothel is illegal. It is illegal to live off the earnings of a prostitute or to help or pressure someone to prostitute themselves.

Prostitutes are required to pay tax on their earnings and make an annual tax declaration in the same way as all other self-employed workers in France.

Prostitutes have a union and during the Covid pandemic qualified for furlough payments when they could not work.

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