Smic will increase by a net 24 euros on January 1
PHILIPPE HUGUEN/AFP via Getty Images
On January 1, 2023, the minimum wage will increase by 24 euros per month due to inflation (illustrative photo taken in June 2012 in Lille).
PRICE – 1353 euros net. This will be the amount of the minimum wage from January 1, which means an increase of 24 euros for this automatic revaluation at the beginning of the year, taking into account inflation, and the latest figures were published this Thursday, December 15.
This means an increase of 1.8%, which will take place after three automatic revaluations in 2022 (5.6% for the year) to maintain purchasing power.
For a general, full-time 35-hour week, the monthly Smic will increase to €1,709 and the hourly Smic will increase to €11.27. The Ministry of Labor confirmed the increase, noting that the monthly Smic of 1,353.07 euros will earn 84 euros compared to January 1, 2022 (so due to these successive revaluations).
Two exceptional increases in 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
Due to the reassessment of the minimum wage 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. The increase in one year is 6.6%.
The government may choose to opt out of the automatic increase” helping hand but not since 2012.
Economists are against strengthening the government
And like every year, a panel of economists weighed in on that possibility before each hike in a report they released a few days ago. According to these experts, automatic revaluation “ allows for the preservation of the purchasing power of wages of people who earn wages at the legal minimum wage “. Their reasoning: A very strong minimum wage dynamic can have a negative impact on the employment of the most vulnerable workers. »
These experts also judge useless “the minimum wage will be reduced” poverty at work, the first two factors of which are the number of hours worked (mandatory part-time) and household configuration. “.
A group of economists recommends changes to the formula for raising the minimum wage. Among the prospectuses, he offers his idea “ automatically indexes the Smic on the average of the minimum wage evolution of a panel of affiliates ” representative. Force Ouvrière judged it in a press release ” an especially unwelcome recommendation at a time when branches are struggling to comply with the minimum conditional minimum wage ”, that is, to ensure that the minimum wage in their networks is equal to or higher than the minimum wage. The CGT claims the minimum wage is €2,000.
According to DARES, on January 1, 2022, 2.5 million workers in the non-agricultural private sector benefited from the Smic revaluation. The proportion of beneficiaries of the Smic revaluation is higher among part-time workers (29.5% compared to 11.1%). %) for full-time employees and very small enterprises (24.5% for those with 1 to 9 employees, 12.2% for others). While women make up 55% of minimum wage workers, they make up 45% of non-agricultural private sector workers.
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