The health crisis, rising raw material and energy prices and the war in Ukraine have made the prices of basic necessities and fuel unaffordable† Millions of French people are in trouble because of the rising cost of living.
The revaluation of the SMIC will therefore an important contribution† That’s good, because the revaluation of the minimum interprofessional growth wage (SMIC) should come into effect on May 1, 2022. According to information collected by AFP from the Ministry of Labor, this increase would be around 2.4 to 2.6%.
the upgradeization of the SMIC
Even though the exact amount will not be announced until April 15, 2022, the amount of € 40 is becoming more and more persistent. It is only a matter of days, the Ministry of Labor is waiting for the publication of its final estimate of the price increase for the month of March. It is after this publication that the exact amount of the revaluation will be officially announced.
The reappraisal of the RSA
The RSA is also being revalued. This will undoubtedly help the most modest households. The government is also considering better to increase the RSA than the activity bonus. The activity bonus has increased by 1.8% since April 1, 2022. The lump sum is now €563.68 while it was €553.71 before April.
It should be noted that more than 4.5 million people live on in France this fee issued by the CAF. For people living alone, the RSA went from € 565.34 to € 575.52. This corresponds to an increase of ten euros extra.
What is inflation?
Inflation is the increase in the price of goods and services that occurs over a period of time. We then say that purchasing power is falling or that the cost of living is rising. In France inflation is measured by INSEE. For example, the variation of specific consumer products is calculated and measured over a specific period. When the organization notices a price increase, it is called inflation.
There is no inflation when the cost of certain products rise while being offset by the decline of other products. On the other hand, if the average consumer price falls, it is called deflation. Each year, the SMIC is calculated in proportion to inflation.
In the month of March 2022, it was noted that in France the cost of living has increased by 4.5% in one year. These preliminary figures from INSEE confirm the 3.6% increase observed in February 2022. This trend has further deteriorated since 2017.
The second upgrade of the year
The continuing rise in living standards prompted the Ministry of Labor to intervene. Although it is only April, there is already a double increase in the minimum growth wage (SMIC).
This increase in the minimum wage by about 2.5% should offset the effects of inflation, measured by INSEE at 4.5% in a year. In fact, the monthly minimum wage should therefore increase from 1,269 to 1,304 euros. Please note that these are only estimates. The exact amount of this revaluation will not be announced until April 15.
The Labor Code recognizes the need to upgrade of the minimum wage at an inflation rate of more than 2%. We are therefore impatiently waiting for the date of April 15 to see the final report of INSEE. The last time the SMIC rose was on January 1, 2022. It was an automatic 0.9% increase.
Note that if an employer came to an employee pays less than the statutory minimum wage, he risks a fine of € 1,500. And this, in addition to an order for payment of damages to the person he employed.
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