SMIC: a revaluation greater than 0.6% on January 1?

SMIC 2021. The Minister of Labor, Elisabeth Borne, estimates that the revaluation of the minimum wage will be greater than 0.6%, as suggested by the panel of economists.

[Mis à jour le 02 décembre 2021 à 10h18] Good news for the poorest? Interviewed at the microphone of BFM Business, Elisabeth Borne indicated that the revaluation of the minimum wage January 1st 2022 is expected to be above 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 greater 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. We will have the December 15 the final inflation figures at the end of November and the social partners will be consulted “.

This declaration comes just days after the publication of the report of the panel of economists consulted before each increase in the minimum wage. He recommended to refrain from any additional help. The automatic revaluation of the minimum wage should reach between 0.5% and 0.6% at the start of 2022, they said. As a reminder, the minimum wage benefits each year from a mechanical increase, assessed 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).

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. 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.

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.