SMIC 2023: the new amount unveiled. More than 1,700 euros?

SMIC 2023 the new amount unveiled More than 1700 euros

minimum wage. The amount of the minimum growth wage will be increased by 1.8% on January 1, 2023. That is a net increase of 24 euros per month.

[Mis à jour le 15 décembre 2022 à 11h50] The amount of the minimum wage will increase January 1st 2023. In fact, to take inflation into account (6.2% in November 2022), the minimum growth wage will be increased by 1.8%, according to the latest figures published by INSEE on Thursday 15 December. The new amount is €1,353s, a net monthly gain of 24 euros. The gross minimum wage will pass the symbolic bar of 1,700 euros for the first time: €1,709s.

The minimum growth wage corresponds to the legal minimum hourly wage that the employee must receive. It applies to all adult employees, regardless of the form of their remuneration (time, output, task, piece, commission or tip). The employer can be sentenced to a fine of 1,500 euros if he pays the employee a remuneration lower than the minimum wage, as well as damages. The Smic is revalued each year on the 1er January, it is indexed to inflation measured for the 20% of households with the lowest incomes. This 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.

For the third time this year, the gross hourly minimum wage increased, rising on August 1 from 10.85 euros to 11.06 euros. Thus, on the basis of a full-time job, 35 hours per week, an employee earning the minimum wage will receive 1,678.95 euros raw and €1,329.05 net (after mandatory deductions), for a net gain of 27 euros each month. Remember that if inflation increases by at least 2% compared to the index observed when the last amount of the minimum wage was established, it is automatically increased in the same proportions. Here are all the minimum wage amounts to know from Monday August 1, 2022, and the new amount from January 1, 2023:

  • Net minimum wage as of August 1, 2022: €1,329.05
  • Gross minimum wage on August 1, 2022: €1,678.95
  • Net hourly minimum wage on August 1, 2022: €8.77
  • Gross hourly minimum wage on August 1, 2022: €11.06

Starting the January 1, 2023the increase in the minimum wage will reach 1.8%, according to the panel of independent experts chaired by Gilbert Cette. Enough to consider a monthly gain of approximately 24 euros. With this revaluation, it would climb to €1,353.

The amount of the monthly net minimum wage reached 1,329.05 euros since August 1, compared to 1,302 euros at the beginning of May and 1,269 euros on January 1. As a reminder, here is the evolution of the amount of the net minimum wage, in recent years, amounted to:

Amount of net minimum wage
YearAmount of the net monthly minimum wage
January 2016€1,143
January 2017€1,149.07
January 2018€1,174.93
January 2019 €1,204
January 2020€1,219
January 2021€1,231
January 2022€1,269.45
May 2022€1,302
August 2022€1,329.05
January 2023€1,353

Each year, the amount of the minimum wage is reassessed. As of August 1, 2022, it reached 1,678.95 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. On May 1, 2022, a new increase had entered into force, bringing the gross minimum wage to 1645.58 euros. As an indication, here is the evolution of the amount of the minimum wage since 2010:

Evolution of the minimum wage since 2010
YearAmount of the hourly minimum wage (gross)Amount of the monthly minimum wage (gross)
January 2010€8.86€1,343.77
January 20119 euros€1,365
December 2011€9.19€1,393.82
January 2012€9.22€1,398.37
July 2012€9.40€1,425.67
January 2013€9.43€1,430.22
January 2014€9.53€1,445.38
January 2015€9.61€1,457.52
January 2016€9.67€1,466.62
January 2017€9.76€1,480.27
January 2018€9.88€1,498.47
January 2019€10.03€1,521.22
January 2020€10.15€1,539.42
January 2021€10.25€1,554.58
January 2022€10.57€1,603
May 2022€10.85€1,645
August 2022€11.07€1,678.95
January 2023€11.27€1,709

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. Since August 1, 2022, the amount of the Net hourly minimum wage was approximately €8.76.

The amount of the hourly minimum wage (gross) amounts to 10.85 euros, compared to 10.57 euros on January 1, 2022 and 10.25 euros previously. As a reminder, the amount of the hourly minimum wage, in recent years, was:

Amount of the hourly minimum wage (gross)
YearAmount of the hourly minimum wage (gross)
January 2016€9.67
January 2017€9.76
January 2018€9.88
January 2019€10.03
January 2020€10.15
January 2021€10.25
January 2022€10.57
May 2022€10.85
August 2022€11.07
January 2023€11.27

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 €11.07 since August 1, 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 valid since August 1, 2022, the net annual Smic amounts to 15,948.71 euros (1329.05×12). For its part, the gross annual minimum wage climbs to €20,147.40 (1678.95×12).

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