SMIC 2022: revalued by 2.65%! When and why?

SMIC 2022. It is now official, the minimum growth wage will once again increase this year. What amount? When ? For what reasons ? We take stock.

[Mis à jour le 21 avril 2022 à 07h37] The Smic will increase! After an initial automatic increase noted in January 1st last (+0.9%), the minimum growth wage will experience a second increase to compensate for the harmful effects of inflation on the purchasing power of the most modest French people. How much ? 2.65% from May 1, 2022. Remember that such an increase is included in the Labor Code, as soon as inflation exceeds the threshold of 2% increase. In March, consumer prices rose by 4.5% over one year, enough to justify this new rise in the minimum wage.

In terms of numbers, the minimum wage will drop from 1,269 euros to 1,302 euros. Enough to pocket an additional 35 euros net per month, and per employee paid at minimum wage. Over a period of one year (between May 2021 and May 2022), the minimum growth wage will have increased by 5.9%, i.e. a net gain of 72 euros per month for an employee paid the minimum wage. Figures made official last week, after the publication of new inflation rates by INSEE.

After experiencing a 0.9% increase at the start of 2022, the minimum wage is now raised to €1,603.12 gross per month, compared to 1,589.47 euros gross monthly last year. In 2020, the Smic experienced a fairly unprecedented revaluation of 2.2% to compensate for the price increase of more than 2% between November 2020 and August 2021. It was the first time since 2011 that an automatic increase took place outside January 1. As a reminder, if an employer were to pay one of his employees below the legal amount of the minimum wage, the latter is liable to a fine of €1,500. He may also be ordered to pay damages and interests to the employee.

The Smic will experience a second revaluation in 2022, from May 1st. Indeed, to take into account the rise in inflation (+4.5% in March over one year), the minimum growth wage will be raised from 2.4% to 2.6%, i.e. a net increase of 30 at 35 euros per month. In other words, the net minimum wage will drop from 1,269 euros to 1,299 euros net on May 1, 2022.

Each year, the amount of the minimum wage is reassessed. Il reaches 1,603 euros gross per month on the basis of 35 hours per week. This increase is the result of both the evolution of inflation and the increase in the wages of workers and employees. As an indication, here is the evolution of the amount of the minimum wage since 2010:

The amount of the monthly net minimum wage reached 1,269 euros, against 1,231 euros previously. As a reminder, here is the evolution of the amount of the net minimum wage, in recent years, amounted to:

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

The amount of the hourly Smic (gross) amounts to 10.57, against 10.25 euros previously. As a reminder, the amount of the hourly minimum wage, in recent years, was:

The amount of the hourly Smic is extremely variable. Keep in mind that the amount may vary from one payslip to another, due to the amount of social security contributions deducted from the gross hourly minimum wage. In January 2022, the amount of the Net hourly minimum wage was approximately €8.37. For example, it was weaker between January and September 2021, measured at 8.11 euros.

The minimum growth wage corresponds to the legal minimum hourly wage that the employee must receive. Deductions are however applicable, in certain cases (apprentices and employees under 18). the hourly rate is of €10.57 since January 2022, this is the amount paid for one hour of work. Unlike the monthly Smic, which is modeled on the basis of 35 hours per week.

The amount of the annual Smic is obtained by multiplying the amount of the monthly Smic (above) by the number of months of the year, i.e. 12. Please note, if you benefit from a 13th month paid to your employer, this is not part of the calculation of the annual minimum wage. Referring to the new amount of the Smic 2022, the net annual Smic amounts to €15,233.40 (1269.45×12). For its part, the gross annual minimum wage climbs to €19,236 (1603×12).

The Smic in France is 10.57 euros gross per hour for a working time of 35 hours. Not all member states of the European Union have one, but for those that have it, the differences are quite significant. According to Eurostat data, the lowest Smic in Europe is the Smic in Bulgaria (332 euros per month). The highest minimum wage in Europe is in Luxembourg (2,257 euros).

For some member countries such as Austria, Cyprus, Denmark, Finland, Italy and Sweden, a minimum wage per branch applies. The minimum wage can also, for these countries, be determined by negotiations between the social partners.

The case of Switzerland is a bit special because only 5 cantons have a minimum wage. Geneva, Neuchâtel, Jura, Ticino and Basel-City. It is not the same between the different cantons.

• Geneva : 3,870 euros
• Neuchâtel : 3,370 euros
• Jura : 3,370 euros
• Ticino : 2,960 euros

Beyond that of the cantons, there is no minimum wage in Switzerland at the country level for several reasons. The first is that Switzerland is a federal state, and each canton remains sovereign. Keep in mind that the Swiss Smic remains, on average, 60% higher than the Smic in France.

Since January 1, 2018, in Germany, a legal minimum amount of wages exists. A minimum wage redefined every two years, henceforth, and reached €9.82 of the hour since January 1, 2022. A next revaluation should take place on July 1, 2022 and should bring the german minimum wage to the height of €10.45 gross of the hour.

In France, the Smic was revalued on January 1, 2022 to take into account price changes between August and November 2021. Employees were entitled to a minimal increase of 0.9% at the start of the year. The monthly net minimum wage therefore fell from 1,231 euros in 2021 to €1,269.45 in 2022. The monthly gross minimum wage increased from 1,554.58 euros to 1,603 euros on January 1, 2022.

The Smic is revalued each year on the 1^er january. It is indexed to inflation measured for the 20% of households with the lowest incomes. The revaluation of the Smic is carried out on the basis of half of the gain in purchasing power of the average hourly wage of workers and employees.

Employees who carry out a professional activity in the hotel and catering sector have a different minimum wage from the legal Smic, called minimum wage. At first glance, the hotel minimum wage seems more advantageous than the legal minimum wage, but it is worth taking a closer look. Indeed, the hotel minimum wage is calculated on 39 hours per week, and not over 35 hours. Another significant difference, when an employee is paid the hotel minimum wage, he automatically benefits from a 10% increase in overtime performed between the 36th and 39th hour. This is why the net monthly hotel minimum wage amounts to €1,430. Beyond the remuneration of the classic minimum wage (1,269.45 euros) due to the increase in overtime. The gross monthly hotel minimum wage amounts to €1,804.65.

The applicable collective agreement generally provides for a conventional minimum wage. If the agreed minimum is lower than the Smic, the employer pays a salary supplement to reach the amount of the Smic. If the conventional minimum is higher than the Smic, the employer pays what is provided for by the collective agreement.