SMIC increase. Growth minimum wages will see reassessment for the third time in 2022 starting August 1. What is the new amount? What increase? What is the gain? We are evaluating.
[Mis à jour le 26 juillet 2022 08h06] On August 1, 2022, the minimum wage will be increased by 2.01% to account for inflation. In other words, the minimum net growth wage will rise from €1302 to €1329.06, a gain of €27 per month for the employee paying the minimum wage. This is already the third increase in minimum wage growth in 2022 after those observed last January (+0.9%) and May (+2.65%). Over the year as a whole, the minimum wage increased by €60 in less than seven months. This increase is part of the rationale for the reassessment of social benefits and the social minimum that the government wants, in the same way for RSA (+4%), APL (+3.5%) or AAH (+4%).
As a reminder, the minimum growth wage corresponds to the legal minimum hourly wage an employee must be paid. It applies to all adult employees, regardless of their pay form (time, performance, assignment, piecework, commission or tip). The employer can be sentenced to a fine of 1,500 euros if it pays the employee less than the minimum wage, plus compensation. Smic is reevaluated every year at 1Verse January, indicative of inflation that was measured for 20% of lower-income households. Smic’s revaluation is made on the basis of half the gain in purchasing power of the average hourly wage of workers and employees. Finally, if inflation increases by at least 2% compared to the indicator observed when determining the last amount of the minimum wage, it automatically increases in the same proportions. This is the case for the reassessment on August 1, 2022.
After seeing a 0.9% increase at the start of 2022, the minimum wage has now been raised to 1645.58 € The total per month, compared to a total of 1,589.47 euros per month last year. In 2021, Smic already experienced a somewhat unprecedented revaluation of 2.2% to compensate for the more than 2% price increase between November 2020 and August 2021. This was the first time since 2011 that there had been an automatic increase outside of January 1. As a reminder, if an employer has to pay one of its employees less than the legal minimum wage amount, the latter is subject to a fine of 1500 EUR. He may also be required to pay compensation to the employee.
Thus, the minimum wage sees a second increase on May 1, 2022. Indeed, to take into account rising inflation (+4.5% in March over one year), the minimum wage has been increased by 2.65%, a net increase of €34 per month. In other words, the net minimum wage rises from 1,269 euros to 1,302.64 euros, an increase recorded on Sunday 1 May. The minimum wage amount will be increased again from August 1, 2022 by 2.01%.
Every year, the amount of the minimum wage is reassessed. Effective January 1, 2022 Totaling €1,603 per month based on 35 hours per week. This increase is attributed to both the development of inflation and the increase in the wages of workers and employees. On May 1, 2022, a new post-inflation increase came into effect, raising the total minimum wage to €1645.58. As an indication, here’s the evolution of the minimum wage amount since 2010:
|year||Minimum hourly wage amount (gross)||Amount of minimum monthly wage (gross)|
|January 2010||8.86 EUR||1,343.77 €|
|January 2011||9 euro||1,365 euros|
|January 2012||9.22 €||1398.37 €|
|July 2012||€9.40||1425.67 EUR|
|January 2013||€9.43||1430.22 EUR|
|January 2014||9.53 €||1445.38 €|
|January 2015||€9.61||1,457.52 EUR|
|January 2016||€9.67||1466.62 EUR|
|January 2017||9.76 EUR||1480.27 €|
|January 2018||9.88 €||1498.47 €|
|January 2019||10.03 EUR||1521.22 EUR|
|January 2020||10.15 EUR||1539.42 €|
|January 2021||10.25 €||1554.58 €|
|January 2022||10.57 €||1,603 euros|
|May 2022||10.85 €||1645 EUR|
The amount of the minimum net monthly wage 1,302.64 For 1269 euros on January 1, and 1231 euros in 2021. As a reminder, here is the evolution of the amount of the net minimum wage, in recent years, amounting to:
|year||The amount of the minimum net monthly wage|
|January 2016||1143 EUR|
|January 2017||1149.07 €|
|January 2018||1174.93 €|
|January 2019||1,204 euros|
|January 2020||1219 EUR|
|January 2021||1,231 euros|
|January 2022||1269.45 €|
|May 2022||1302 EUR|
The minimum hourly wage (gross) is €10.85, compared to €10.57 on January 1, 2022 and €10.25 previously. As a reminder, the minimum hourly wage amount in recent years has been as follows:
|year||Minimum hourly wage amount (gross)|
|January 2017||9.76 EUR|
|January 2018||9.88 €|
|January 2019||10.03 EUR|
|January 2020||10.15 EUR|
|January 2021||10.25 €|
|January 2022||10.57 €|
|May 2022||10.85 €|
The amount of Smic per hour is very variable. Keep in mind that the amount may vary from one pay slip to another, due to the amount of Social Security contributions deducted from the total minimum hourly wage. In January 2022, an amount of net minimum hourly wage it was almost 8.37 EUR. For example, it was weakest between January and September 2021, measured at €8.11.
The minimum growth wage corresponds to the legal minimum hourly wage an employee must be paid. However, discounts apply, in some cases (interns and employees under 18). The hour rate who is he 10.85 € Since May 2022, this is the amount paid for one hour of work. Unlike Smic Monthly, which is designed based on 35 hours per week.
The annual Smic amount is obtained by multiplying the monthly Smic amount (above) by the number of months of the year, i.e. 12. Please note, if you are benefiting from the thirteenth month paid to your employer, this is not part of the calculation of the annual minimum wage. Referring to the new amount of Smic 2022 in effect since May 1, 2022, the annual net Smic amounts to 156,631.68 € (1302.64 x 12). For its part, the total annual minimum wage rises to €19.746 (1645.58 x 12).
The total price of Smic in France is €10.85 per hour for a working time of 35 hours. Not all EU member states have one, but for those who do, the differences are very significant. According to Eurostat data, the lowest Smic in Europe is Smic in Bulgaria (332 € per month). The highest minimum wage in Europe is found in Luxembourg (€2,257).
For some member countries such as Austria, Cyprus, Denmark, Finland, Italy and Sweden, a minimum wage is applied for each branch. Minimum wages, for these countries, can also be determined 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
- Neuchâtel : 3370 EUR
- Jura : 3370 EUR
- Ticino : 2960 EUR
Unlike the cantons, there is no minimum wage in Switzerland at the state level for several reasons. The first is that Switzerland is a federal state, and each canton remains sovereign. Keep in mind that Swiss Smic remains, on average, 60% higher than Smic in France.
Since January 1, 2018, there is a legal minimum wage in Germany. A minimum wage to be re-established every two years, from now on, and amounted to €9.82 From the time since January 1, 2022. The next reassessment must take place on July 1, 2022 and must bring German minimum wage to high 10.45 € Total hour.
In France, the Smic was revalued on January 1, 2022 to take into account price changes between August and November 2021. Employees are entitled to a minimum increase 0.9% at the beginning of the year. Thus, the net minimum monthly wage has decreased from €1231 in 2021 to 1269.45 euros in 2022. The minimum gross monthly wage has increased from € 1554.58 to 1,603 euros on January 1, 2022.
Then he was promoted again from 2.65% To May 1, 2022. Enough to bring it 1302 EUR net monthly.
Smic is reevaluated every year at 1Verse January. It is an indicator of the inflation measured for the 20% of families with the lowest income. Smic is revalued on the basis of half the gain in purchasing power of the average hourly wage of workers and employees. An increase is also made once the inflation level exceeds 2%.
Employees who carry out professional activity in the hotel and restaurant sector have a different minimum wage than the legal Smic, called lowest wages. At first glance, the hotel’s minimum wage seems more advantageous than the legal minimum wage, but it’s worth taking a closer look at it. In fact, the hotel’s minimum wage is calculated 39 hours a week, not more than 35 hours. Another important difference, when an employee is paid the minimum wage in a hotel, he automatically benefits from a 10% increase in overtime Conducted between 36 and 39 o’clock. This is why the hotel’s minimum net monthly wages reach 1430 EUR. In addition to the classic minimum wage (€1,269.45) due to increased overtime. The minimum gross monthly wage for hotels is 1,804.65 €.
The generally applicable collective agreement provides for a traditional minimum wage. If the agreed-upon minimum is less than Smic, the employer pays a salary supplement to reach the Smic amount. If the conventional minimum is higher than the Smic, the employer pays what the collective agreement states.