Written by: Fatima Younes
The French government has announced an increase in the minimum wage (SMIC) by 1.6% effective December 1, 2026, while the reference gas price will rise by 5.8% on the same date, marking the fourth consecutive monthly increase following increases of 6.6% in November, 6.3% in October, and 5.6% in September. These increases affect six million French families.
Minimum Wage Increase
Sébastien Lecornu announced, following a social conference in Matignon, a raise in the SMIC of approximately 23 euros to reach 1,502 euros per month, benefiting about 2.2 million workers in the non-agricultural private sector. However, unions considered the increase "crumbs" and insufficient, warning that the cost will be borne by small and medium-sized enterprises, which could expose them to financial difficulties.
Continued Rise in Gas Prices
The reference gas price continues its ascent for the fourth consecutive month, burdening six million subscribers. These increases come in the context of geopolitical tensions, most notably the wars in Ukraine and Iran, which exacerbate energy price pressures on consumers.
Impact on Heating Bills
According to "Selectra," a company specializing in energy contracts, the estimated annual bill for a home heated by gas (with an annual consumption of 11,200 kWh) jumped from approximately 1,175 euros in July 2023 to nearly 1,789 euros in July 2026, an increase of 52%. Heating has become a heavy burden on more than six million French families.
Exacerbation of Poverty Among Workers
Data from the National Institute of Statistics (INSEE) indicate that 9.8 million people live below the poverty line in France. "Secours Catholique" pointed to the existence of 2.3 million "working poor," the majority of whom are women. The "Living Standard Index" from the Jean Jaurès Foundation revealed that one in two French people faces difficulties living with dignity, while some are forced to eat only one meal a day.
Grim Outlook Before Elections
With five months remaining until the presidential elections, France faces a rare existential crisis, punctuated by continuous strikes and protests for the past five weeks in defense of purchasing power, at a time when housing, fuel, and food prices are escalating, with diesel reaching 2.20 euros per liter, gasoline 2.05 euros, and LPG 1.07 euros.
