Business

a second raise! How much and why?


SMIC 2022. After a first increase in January, the minimum growth wage will be increased for the second time in May. What amount? Why ? We make an inventory.

[Mis à jour le 5 avril 2022 à 12h02] From 2.4% Bee 2.6%† This is the increase from which the Minimum Growth Wage (Smic) should benefit on May 1, 2022. Indeed, as announced by the Ministry of Labor, will the Smic undergo a second increase in 2022? subsequently observed at January 1st+0.9%† With currently 1,269 euros net per month, the minimum wage could therefore exceed the symbolic bar €1,300 net. In other words, with this new revaluation, an employee who pays the minimum wage will have to go down 30 Bee 35 euros every additional month. The objective is clear to limit the negative impact of rising inflation on consumers’ purchasing power. Inflation rises sharply this month (+4.5% more than a year in March), limiting opportunities for the most modest households who find it increasingly difficult to get by at the end of the month.

In 2020, the Smic experienced a fairly unprecedented revaluation of 2.2% to offset 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 its employees below the statutory minimum wage, the latter could be fined €1,500† He can also be ordered to pay damage and interests to the employee. In 2022, the second impulse of the year is intended for a category of the French population that is all the more subject to the successive increases in the price per barrel of oil and therefore from fuelfrom gas or foodstuffs. the food control could also make its big comeback in 2022.

After an increase of 0.9% at the beginning of 2022, the minimum wage will now be raised to €1,603.12 gross per month, compared to 1,589.47 euros gross per month last year. In 2020, the Smic experienced a fairly unprecedented revaluation of 2.2% to offset 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 its employees below the statutory minimum wage, the latter could be fined €1,500† He can also be ordered to pay damage and interests to the employee.

The Smic will undergo a second revaluation from 1 May in 2022. In fact, to take into account the rise in inflation (+4.5% in March over a year), the minimum growth wage will be increased from 2.4% to 2.6 %, or a net increase of 30 to 35 euros per month. In other words, the net minimum wage will fall from 1,269 euros to 1,299 euros net on May 1, 2022.

The minimum wage is re-established every year. ll reaches 1,603 euros gross per month based on 35 hours per week† This increase is the result of both the evolution of inflation and the increase in the wages of blue-collar and white-collar workers. As an indication, here is the evolution of the amount of the minimum wage since 2010:

Evolution of the minimum wage since 2010
Year Amount of the minimum hourly wage (gross) Level of the monthly minimum wage (gross)
January 2010 €8.86 €1,343.77
January 2011 9 euros €1,365
Dec 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

The monthly net minimum wage was 1,269 euros, compared to 1,231 euros earlier. 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
Year Amount 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

“The amount of the net minimum wage that the employee receives depends on the company involved and on certain contributions related to the sector of activity,” the public service recalled on the dedicated page.

The amount of the Smic per hour (gross) is 10.57, compared to 10.25 euros before. As a reminder: the level of the minimum hourly wage in recent years has been:

Amount of the minimum hourly wage (gross)
Year Amount of the minimum hourly 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

The amount of the Smic per hour is highly variable. Keep in mind that the amount per pay slip may differ due to the amount of social security contributions that are deducted from the gross minimum hourly wage. In January 2022, the amount of the Net minimum hourly wage was about €8.37† For example, it was weaker between January and September 2021, measured at 8.11 euros.

The minimum growth wage corresponds to the statutory minimum hourly wage that the employee must receive. In certain cases, deductions do apply (pupils and employees under the age of 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 based on 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, so 12. Please note, if you are benefiting 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 . is €15,233.40 (1269.45×12). For its part, the gross annual minimum wage increases to €19,236 (1603×12).

The Smic in France is 10.57 euros gross per hour with a working time of 35 hours. Not all member states of the European Union have one, but for those that do, 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 located in Luxembourg (2,257 euros).

Some Member States such as Austria, Cyprus, Denmark, Finland, Italy and Sweden have a minimum wage per establishment. The minimum wage can also be determined for these countries through 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
  • Neuchatel : 3,370 euros
  • Jura : 3,370 euros
  • Ticino : 2,960 euros

Outside of that of the cantons, there is no minimum wage in Switzerland at the country level for various 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, there is a legal minimum wage in Germany. From now on, a minimum wage will be re-established and reached every two years € 9.82 of the hour since January 1, 2022. A subsequent revaluation should occur on July 1, 2022 and would german minimum wage up 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 minimum increase of 0.9% at the start of the year. As a result, the monthly net minimum wage fell from 1,231 euros in 2021 to € 1,269.45 in 2022† The monthly gross minimum wage increases from 1,554.58 euros to 1,603 euros on January 1, 2022

The Smic is revalued every year on the 1er 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 purchasing power gain of the average hourly wage of blue-collar workers.

Employees who exercise a professional activity in the catering industry have a different minimum wage than the legal Smic, called minimum wage† At first glance, the hotel minimum wage may seem more advantageous than the statutory minimum wage, but it is worth taking a closer look. The hotel minimum wage is calculated on 39 hours a week, and no more than 35 hours. Another important difference is that when an employee receives the hotel’s minimum wage, he automatically enjoys a 10% more overtime performed between the 36th and 39th hour. This is why the net monthly salary for the hotel €1,430† Above the compensation of the classic minimum wage (1,269.45 euros) due to the increase in overtime. The gross monthly salary hotel minimum is €1,804.65

The applicable collective labor agreement usually 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 arranged in the collective labor agreement.