SMIC INCREASE. The amount of the Smic is revalued by 2.01% from August 1, 2022. What profit on your payslip? We explain everything to you.
[Mis à jour le 22 juillet 2022 08h18] Minimum growth wage levels are being reassessed August 1, 2022 ! An automatic increase enshrined in the texts of the Labor Code once the level of inflation is exceeded 2%. For several months, the consumer price index has been rising and reached 5.8% in June over a year. The first extrapolations even bring it to that 6.8% in September over twelve rolling months, pending the official figures that INSEE will publish in the coming weeks. This will further reduce the purchasing power of the poorest households. In this uncertain and more than delicate economic environment, the minimum wage will rise 2.01%, but will not offset inflation. This is already the third increase in the minimum growth wage in 2022 after those observed in January (+0.9%) and May (+2.65%). The Smic therefore rose over the course of the year 1,269.45 euros to €1,329.06 within seven months for a net gain of 60 euro for those affected.
But how much will that 2.01% increase bring in, exactly? What gain is noted on the payslip at the end of the month? The level of the minimum growth wage (minimum wage), the wage level below which an employer may not pay a full-time worker on a 35-hour-week basis, has a net gain of 26 euros a month. The net smic rises from 1,302.64 euros €1,329.06. The amount of the minimum gross growth wage is 1,645 euros €1,678. For its part, the gross hourly minimum wage rose by EUR 8.58 €8.76. An increase that is part of a logic of upgrading social benefits and social minima wanted by the government, as well as the RSA (+4%), the APL (+3.5%) or the AAH (+4%).
After the minimum wage increased by 0.9% in early 2022, it will now be increased to €1645.58 gross per month compared to EUR 1,589.47 gross per month in the previous year. In 2021, the Smic had already experienced a fairly unprecedented 2.2% appreciation to offset the more than 2% price increase between November 2020 and August 2021. It was the first time since 2011 that an automatic increase occurred outside of January 1st. As a reminder, if an employer pays one of its employees less than the statutory minimum wage, they face a fine of €1,500. He can also be sentenced to pay compensation to the employee.
The minimum wage will therefore experience a second increase on May 1, 2022. To account for the increase in inflation (+4.5% in March over a year), the minimum growth wage is increased by 2.65%, a net increase of 34 euros per month. In other words, the net minimum wage increases from 1,269 euros to 1,302.64 euros net, an increase recorded on Sunday May 1st. The minimum wage will be increased again from August 1, 2022 2.01%.
The minimum wage is reset every year. As of January 1, 2022 it is 1,603 euros gross per month at 35 hours per week. This increase is the result of both the development of inflation and the increase in the wages of workers and employees. On May 1, 2022, a new increase in inflation came into effect, bringing the gross minimum wage to 1,645.58 euros. As an indication, here is the development of the minimum wage since 2010:
|Year||Hourly minimum wage (gross)||Amount of the monthly minimum wage (gross)|
|January 2011||9 euros||€1,365|
The amount of the monthly net minimum wage achieved 1,302.64 euros, compared to 1,269 euros on January 1 and 1,231 euros in 2021. As a reminder, here is the development of the level of the net minimum wage in recent years:
|Year||Amount of the monthly net minimum wage|
The minimum hourly wage (gross) is EUR 10.85 compared to EUR 10.57 on January 1, 2022 and EUR 10.25 previously. As a reminder, the minimum hourly wage in recent years has been:
|Year||Hourly minimum wage (gross)|
The level of the hourly smic is extremely variable. Note that the amount may vary from paycheck to paycheck due to the amount of Social Security contributions deducted from the gross hourly minimum wage. In January 2022, the amount of Minimum wage per hour net was about €8.37. For example, it was weaker between January and September 2021, measured at EUR 8.11.
The minimum growth wage corresponds to the statutory minimum hourly wage that the worker must receive. However, deductions are possible in certain cases (apprentices and employees under the age of 18). the hourly rate is of €10.85 since May 2022 this is the amount paid for one hour worked. As opposed to the monthly smic which is modeled on a 35 hour per week basis.
The annual Smic amount is calculated by multiplying the monthly Smic amount (above) by the number of months in the year, ie 12. Please note if you are benefiting from a 13th month paid to your employer this is this is not part of the annual minimum wage calculation. Based on the new level of the Smic 2022 that has been in effect since May 1, 2022, the annual net Smic is €15,631.68 (1302.64×12). The gross annual minimum wage, for its part, is increasing €19,746 (1645.58×12).
The Smic in France is 10.85 euros gross per hour for a working time of 35 hours. Not all European Union member states have one, but for those that do, the differences are quite large. 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 in Luxembourg (2,257 euros).
For some member countries such as Austria, Cyprus, Denmark, Finland, Italy and Sweden there is a minimum wage per branch. The minimum wage can also be set for these countries through negotiations between the social partners.
The case of Switzerland is a bit special as only 5 cantons have a minimum wage. Geneva, Neuchâtel, Jura, Ticino and Basel-Stadt. It is not the same between the different cantons.
- Geneva : 3,870 euros
- Neuchâtel : 3,370 euros
- law : 3,370 euros
- Ticino : 2,960 euros
Apart from that of the cantons, there is no minimum wage in Switzerland at the state level for a number of reasons. First, Switzerland is a federal state and each canton remains sovereign. Remember that the Swiss smic is on average 60% higher than the smic in France.
There has been a statutory minimum wage in Germany since January 1, 2018. A minimum wage that will henceforth be redefined and achieved every two years €9.82 the hour since January 1, 2022. A next re-evaluation is scheduled to take place on July 1, 2022 and bring that German minimum wage up to the amount of €10.45 gross of the hour.
In France, the Smic was repriced on January 1, 2022 to reflect price changes between August and November 2021. Employees were entitled to a minimum increase of 0.9% at the beginning of the year. The monthly net minimum wage fell from 1,231 euros in 2021 €1,269.45 in 2022. The monthly gross minimum wage increased from 1,554.58 euros 1,603 euros on January 1, 2022.
It was then upgraded a second time off 2.65% until May 1, 2022. Enough to achieve it €1,302 Monthly net.
The Smic is re-evaluated on the 1st of each yearah January. It is indexed to inflation, which is measured for the 20% of households with the lowest incomes. The Smic is re-evaluated on the basis of half the gain in purchasing power of the average hourly wage of blue- and white-collar workers. An increase also occurs as soon as the inflation level exceeds 2%.
Employees who pursue a professional activity in the hotel and catering industry have a minimum wage that differs from the statutory minimum wage, called Smic minimum wage. At first glance, the hotel minimum wage seems more advantageous than the statutory minimum wage, but it is worth taking a closer look. However, the calculation is based on the hotel minimum wage 39 hours per week, and no more than 35 hours. Another key difference: if an employee earns the hotel minimum wage, they automatically benefit from one 10% more overtime performed between the 36th and 39th hour. Therefore, the monthly net hotel minimum wage is €1,430. In addition, the payment of the classic minimum wage (1,269.45 euros) through the increase in overtime. The gross monthly hotel minimum wage is €1,804.65.
The applicable collective agreement usually provides for a standard minimum wage. If the agreed minimum is below the Smic, the employer pays a wage supplement up to the amount of the Smic. If the collectively agreed minimum is above the Smic, the employer pays what the collective agreement stipulates.