Net minimum wage increase in France (2022)
Smic (Minimum Incremental Wage) corresponds to the legal minimum hourly wage that an employee must receive. However, deductions apply in certain cases (students and workers under 18). Growth is predicted at the beginning of the year.
Algerian citizens: the monthly minimum wage increases from 1er january
The minimum net wage increase will increase by 24 euros on January 1 due to inflation
1,353 euros net: this will be the amount of the minimum wage increase from 1 January 2023, which means that there will be a 24 euro increase for this automatic revaluation at the beginning of the year, taking into account inflation, the latest figures have been released. published this Thursday, December 15th.
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Automatic increase on January 1, 2023.
According to AFP estimates based on inflation figures published by INSEE on Thursday, December 15, 2022, the minimum wage increase will mechanically increase by 1.8% on January 1, 2023, bringing the amount of the minimum wage to €1,353 per month. .
An increase of 24 euros per month
For a general, full-time 35-hour week, the minimum monthly wage increase will increase to €1,709, and the hourly minimum wage will increase to €11.27. The Ministry of Labor confirmed this increase and noted that the net, 1,353.07 euros per month, the minimum wage will gain 84 euros compared to January 1, 2022.
The minimum wage benefits from a mechanical increase each year on January 1, which takes into account weighted price increases for the 20% of households with the lowest income.
Revaluations also occur once inflation exceeds 2% for the year, leading to two exceptional increases this year (2.6% on May 1 and 2% on August 1) after an automatic 0.9% in January 2022 has been
The last increase in the minimum wage took place on 1 August 2022 and increased from €1,302 to €1,329 net per month (for a full-time 35-hour week), an increase of 2.01%.
The last five months were taken into account
Due to the minimum wage revaluation on August 1, the price increase considered for the automatic increase in January applies only to the months of July, August, September, October and November.
According to figures released by INSEE on Thursday morning, this price index for “households in the first quintile” (the poorest 20%) increased by 0.4% in November and by 1.8% from June. In one year it is 6.6%
.
Minimum Wage Increase Since 2012 ‘Excessive’
Every year the government can choose to deviate from the automatic increase with a “fall”, but there has been no such increase since 2012. As every year, before each hike, a panel of economists argued against this possibility.
According to these experts, automatic revaluation “enables to preserve the purchasing power of the wages of people who earn wages at the legal minimum wage.”
Their reasoning: “Smic’s very strong dynamics can have a negative impact on the employment of the most vulnerable workers. »
These experts also consider the minimum wage to be “inappropriate” for reducing working poverty, the first two factors being the number of hours worked (mandatory part-time) and household configuration.
Smic: recommendations of a group of economists
A panel of economists recommends changes to the minimum wage revaluation formula. Among the prospectuses, he proposes the idea of ”automatic indexation of Smic on the average of the evolution of the minimum wage of a panel of representative branches”.
In a press release, the Force Ouvrière said that this “recommendation is particularly undesirable at a time when branches are facing difficulties regarding the compatibility of the contractual minimum with the minimum wage for growth”, meaning that in their networks, the minimum wage is equal to or higher than the minimum growth wage.
Minimum wage: On January 1, 2022, 2.5 million workers benefited from the revaluation of the minimum wage.
According to Dares, on January 1, 2022, 2.5 million workers in the non-agricultural private sector benefited from the revaluation of the minimum wage increase.
The proportion of those benefiting from the revaluation of the minimum wage is higher among part-time workers (29.5%, 11.1% for full-time workers) and very small enterprises (24.5% between 1-9 employees). in others 12.2%).
Women make up 55% of minimum wage earners, while they make up 45% of non-agricultural private sector wage earners.
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