According to the Salary Budget Planning survey conducted by the WTW group, a median salary increase of 3.5% is expected in 2025 in France. This figure, slightly lower than the real increase of 3.8% recorded in 2024, reflects the efforts of companies to maintain their competitiveness in a tense economic context.
An uneven increase depending on the country
France is slightly below major global economies with this forecast of 3.5%, while countries like Canada (3.6%), Germany and the United States (3.7%) are showing slightly higher increases. However, emerging economies like Brazil (5.9%) and China (4.6%) stand out, although they are seen as anomalies in a general trend of slowing global wage increases.
This dynamic reflects varied economic realities, influenced by economic performance and social pressures. In France, these increases reflect employers’ efforts to meet employees’ expectations while adjusting to budgetary constraints.
Wage increases will be above inflation
The median salary increase in 2025 is well above forecast inflation, estimated at 1% by INSEE. This differential shows a desire by companies to protect the purchasing power of employees despite financial challenges. According to Khalil Ait-Mouloud, director of the remuneration survey activity at WTW France, “these budgets reflect the desire of companies to maintain their competitiveness in a tense job market. »
Still, nearly 46% of companies surveyed acknowledge that actual increases will be lower than the previous year, due to weaker financial results and high costs in other areas.
Recruitment and retention: ever-present issues
Despite a slight improvement compared to previous years, 37% of companies report still encountering difficulties in attracting the talent they need (compared to 42% in 2023 and 44% in 2022). This situation is pushing employers to review their compensation policies, with 66% of companies opting for global reviews of their salary scales.
Beyond salary increases, employers are relying on other levers to attract and retain talent:
– Employee experience: priority for 80% of companies.
– Diversity, equity and inclusion (DEI): integrated into 73% of strategies.
These initiatives aim to strengthen employee engagement and stand out in an ever-competitive job market.
A trend to watch
Despite these efforts, the drop in planned increases compared to 2024 shows the limits of companies’ capacities in a still uncertain economic context. If priority seems to be given to maintaining purchasing power and attracting talent, companies will have to face complex trade-offs between competitiveness and profitability.
The survey, carried out in October 2024 among 1,000 companies operating in France, shows that, although imperfect, the 2025 salary increases remain a positive signal for employees. However, regional and sectoral disparities as well as real inflation will influence the concrete impact of these increases on the daily lives of the French.
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