Minimum wage: what increase on January 1?

Minimum wage. At present, the minimum wage is 1,589.47 euros gross monthly, on the basis of 35 hours. However, it should be subject to a traditional revaluation due to inflation on January 1.

[Mis à jour le 15 décembre 2021 à 14h11] The minimum wage benefits each year from a mechanical increase, evaluated according to the inflation observed for the 20% of households with the lowest incomes and half of the gain in purchasing power of the basic hourly wage of workers and employees (SHBOE) . At January 1st 2022 therefore, the amount of the minimum wage will be revised upwards given the evolution of prices. INSEE has already unveiled its forecasts: the minimum wage should increase by 0.9%, to 1,603 euros gross on the basis of 35 hours per week, i.e. an increase of at least 14 euros gross – in the absence of additional support from the executive, according to his latest conjuncture note. In the end, the minimum wage will have increased by 50 euros gross in one year, note The echoes. In November 2021, consumer prices increased by 0.4% over one month and 2.8% over one year, let INSEE know in detail this Wednesday.

“The prices of services are on the rise (+ 0.2% after + 0.0%) and those of food are rebounding (+ 0.4% after −0.2%)”, details the statistical institute. “The prices of manufactured products increased, over one month, at the same pace as in October (+ 0.2%). Tobacco prices are stable and those of energy are slowing (+ 1.5% after +4, 8%) “.

Interviewed at the microphone of BFM Business a few days ago, Elisabeth Borne had indicated that the revaluation of the minimum wage on January 1, 2022 would be greater than 0.6%. “Today we had the first estimates from INSEE on inflation in November,” explained the Minister of Labor. “They show that it, at 2.8% over one year, is higher than what was expected. The new increase in the minimum wage on January 1 should be greater than the 0.6% announced by the experts”. It remains to be seen whether the government will announce an additional boost to this automatic revaluation.

In a press release, the CGT, FO and Solidaires demand a “real debate on the level of the minimum wage”. “The bonuses and the small advantages are not sufficient. What is authentic is the salary,” said Philippe Martinez. The National Collective Bargaining Commission which is meeting this Wednesday afternoon. Friday morning, unions and employers will be received by the Minister of Labor, in order to take stock of the salary grids of branches whose minimum wages are below the minimum wage.

The Smic is the legal minimum wage that an employee must receive in France. An employee cannot therefore be remunerated below this threshold, but there are however exceptions with reductions in certain cases, such as employees under the age of 18 and apprentices. An employer who does not respect the legal minimum wage is liable to a fine of 1,500 euros and may be ordered to pay damages to his employee. He is currently reaching 1,589.47 euros gross monthly, on the basis of 35 hours. Last October, the minimum wage was exceptionally increased by 2.2%, due to a price increase of more than 2% between November 2020 and August 2021. It was the first time since 2011 that an automatic increase occurred outside January 1st.

What amount for the net minimum wage?

The amount of the monthly net minimum wage reached 1,231 euros, against 1,219 euros previously. As a reminder, the amount of the net minimum wage in recent years has amounted to:

“The amount of the net minimum wage received by the employee depends on the company concerned and on certain contributions related to the sector of activity”, recalls the public service on its dedicated page.

The amount of the hourly minimum wage (gross) amounts to 10.25, against 10.15 euros in previously. As a reminder, the amount of the hourly minimum wage in recent years has been:

Each year, the amount of the minimum wage is reassessed. Il reaches 1,554.58 euros gross per month on the basis of 35 hours per week, against 1,539.42 euros previously. This increase is the result of both the trend in inflation and the rise in the wages of workers and employees. As an indication, here is the evolution of the amount of the minimum wage since 2010:

The annual minimum wage amounts to 18,654 euros gross. The net annual amount stands at 14,772 euros this year.