minimum wage. Given the evolution of inflation, the government could be forced to revalue the minimum wage before the end of the year.
[Mise à jour du vendredi 24 juin 2022 à 09h] Will the acceleration of inflation result in a new revaluation of the minimum wage in 2022? At this stage, the government has made no announcement to this effect. However, he may not have a choice, because the revaluation of the Smic is framed. In article L3231-5 of the Labor Code, in force since 2008, the legislator specifies: “when the national consumer price index reaches a level corresponding to an increase of at least 2% compared to the index observed when establishing the immediately preceding minimum growth wage, the minimum growth wage is increased in the same proportion from the first day of the month following the publication of the index leading to this increase”.
After a 4.8% increase in April, consumer prices increased by 5.2% in May 2022 over one year, noted INSEE. They are expected to increase further 5.4% in June, driven in particular by food prices, expected to rise by 6.3% in June, and still by energy prices, even if their increase should slow down somewhat (+26% in June after +29.2% in March), anticipated INSEE in its latest economic update. Since May 1, the gross hourly minimum wage now stands at 10.85 euros, or 1,645.58 euros gross per month on the basis of 35 hours, and 1,302.64 euros net. Over one year (from May 2021 to May 2022), the minimum wage increased by 5.9%, or 72 euros net.
Does this mean that the minimum wage will soon reach 1,500 euros net as desired by the left? “Given the automatic indexation to inflation, we should probably have at least a further increase in the minimum wage by the end of the year, observes a source at the Ministry of the Economy, with the daily Les Echos . And if we add the activity bonus, the level of 1,500 euros net is probably almost reached.
The net monthly minimum wage increased by 2.65% on May 1, 2022, now reaching 1,302 euros net per month on the basis of 35 hours.
|Date||Net monthly minimum wage|
|January 2019||1204 €|
In May 2022, the gross amount of the Smic now exceeds 1,600 euros gross per month.
|Year||Gross hourly minimum wage in euros||Gross monthly minimum wage for 151.67 hours of work in euros||Publication in the OJ|
|2022 – May||€10.85||€1,645.58||04/19/2022|
|2021 – October||€10.48||€1589.47||09/27/2021|
|Source: Ministry of Labour, Employment, Vocational Training and Social Dialogue.|
The net monthly minimum wage is around 1,269 euros on January 1, 2022 (1,258 euros in October 2021, 1,231 euros since January 2021). The gross monthly minimum wage is 1,603.12 euros on January 1, 2022 (1,589.47 euros from October 2021, 1,554.58 euros since January 2021). To change the gross salary to net, you must deduct the amount of employee contributions. These amounts relate to a full-time employee. Part-time employees are paid according to the hourly rate of the minimum wage, i.e. 10.57 euros on January 1, 2022 (10.48 euros gross in October 2021, 10.25 euros since January 2021).
Collective agreements and company agreements can also define a minimum remuneration depending on the job held. In this case, it is the conventional minimum wage (higher than the minimum wage) that must be respected. For example, we talk about the hotel minimum wage, to evoke the minimum wage practiced in this sector. But if the conventional minimum wage is lower than the Smic, then it is the latter that must be applied.
The amount of the annual minimum wage can be obtained by multiplying the amount of the monthly minimum wage by 12. Thus, taking into account the amounts valid from January 2022, the amount of the net annual minimum wage would amount to 15,228 euros (1,269 X 12 ). The amount of the gross annual minimum wage would reach 19,237 euros (1,603.12 X 12).