Due to inflation, the minimum wage will rise by 2.65% on May 1st

For a full-time job, the minimum monthly wage will drop from € 1,269 to € 1,302.64.

Due to inflation, the SMIC will be revalued to 1is May for the third time in seven months and will exceed the monthly bar of 1,300 euros net, but neither Emmanuel Macron nor Marine Le Pen want to go beyond this automatic increase. This increase, which will directly benefit just over two million employees, will be 2.65% according to the Ministry of Labor. For a full-time job, the minimum monthly wage will be € 1,645.58 gross. Net, will reach 1302.64 euros, with an increase of 34 euros. The minimum gross hourly wage will drop from € 10.57 to € 10.85. In January, the SMIC had grown by 0.9% after the exceptional 2.2% increase in October, already due to inflation. In one year – from May 2021 to May 2022 – the Smic will be increased by 5.9%, or 72 euros net.

In France, the purchasing power of minimum wage workers is protected by an automatic adjustment mechanism that ensures that the minimum wage increases at least as fast as prices for the most modest households. According to data published on Friday by INSEE, inflation excluding tobacco between November 2021 and March 2022, driven by the increase in energy prices, stands at 2.65% for 20% of households with more modest income. The minimum wage will therefore be increased in the same proportion.

This mechanism is all the more protective because, as Julien Pouget, head of the business cycle department at INSEE pointed out in mid-March, the price index for low-income households is rising faster than the general index.given the weight of energy and food in its composition“. “Of the 30 OECD countries with minimum wages, only three foresee an automatic adjustment linked to inflation and only one – France – which foresees a repetition during the year“, Underlines the economist Gilbert Cette, president of the group of experts on Smic which must be consulted by the government before any increase.

SEE ALSO – «Inflation out of control, VAT drop, TICPE …”: Marine Le Pen details her measures for purchasing power

This, the inflation trend in the coming months remains unpredictable due to the war in Ukraine, even if it should be affected by the entry into force of the government discount from 15 to 18 cents per liter of fuel. “Then there is the unknown factor of the transmission of the increase in commodity prices to production prices, therefore to sales prices and wages.explains Gilbert This.

Minimum of branches exceeded by the minimum wage

If several unions – but not the CFDT – ask for a much higher increase in the minimum wage – 10% for example for Unsa – the two finalists in the presidential elections are against a “increasewhich has not intervened since the election of François Hollande in 2012 and would penalize, according to them, the hiring of the least qualified. Marine Le Pen wants to encourage companies to raise wages, exempting from contributions those who increase their employees by 10% by earning the equivalent of less than three Smic. For his part, Emmanuel Macron wants to triple the bonus ceiling without social security contributions or taxes that companies can pay to their employees.

SEE ALSO – Presidential 2022: Macron promises to raise the ceiling of the “Macron bonus” to 6,000 euros

Another consequence of this increase in the SMIC, many branches will find themselves with minimum wages defined by their collective agreements once again exceeded by the SMIC. Of the 171 branches that cover more than 5,000 employees, 67 had at the end of March, even before this revaluation, a grid composed of at least a coefficient lower than the Smic, according to the Ministry of Labor. The CFDT argues that the branches involved in the rise of the SMIC are forced to open negotiations within three months to continue to benefit from the exemptions from social security contributions for salaries of less than 1.6 SMIC. The CGT proposes that every increase in the Smic gives rise to an automatic revaluation of the minimums of the branch, in order to avoid a “crushingSalary at the bottom of the grid.

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