SMIC INCREASE. D-4 before minimum wage reassessment. What amount? What increase? We tell you everything.
[Mis à jour le 27 juillet 2022 08h07] The minimum wage will see its third increase in less than a year. In fact, every employee who is paid the minimum growth wage benefits from a reassessment of 2.01% starting with the August 1, 2022. In reality, the Smic increases automatically when the level of inflation exceeds 2% (between March and June for the 20% of the poorest households). This is why the automatic increase for the month of August 2022 was triggered. This rule is enshrined in the texts of the Labor Code. Thanks to this increase, the net minimum wage has risen from 1,302 euros €1,329a net profit of 27 euros. Thanks to three consecutive increases in 2022, +0.9% in January, +2.65% in May and now +2.01% in August, the minimum wage will have increased by 60 euros net in less than a year.
- Net minimum wage from August 1, 2022: €1,329
- Gross minimum wage on August 1, 2022: €1,678
- Gross hourly minimum wage on August 1, 2022: €11.06
As a reminder, the growth minimum wage corresponds to the statutory minimum hourly wage that the employee must receive. It applies to all adult employees, regardless of the form of their remuneration (time, performance, task, piecework, commission or tip). The employer can be fined 1,500 euros if he pays the employee less than the minimum wage and damages. The Smic is re-evaluated on the 1st of each yearah As of January 1, it is indexed to inflation, which is measured for the 20% of households with the lowest incomes. This re-evaluation of the Smic is based on half the gain in purchasing power of the average hourly wage of manual and white-collar workers. Finally, if inflation increases by at least 2% compared to the index observed when the minimum wage was last set, it is automatically increased by the same proportion. This is the case for the August 1, 2022 revaluation.
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 due both to the development of inflation and to the increase in wages for 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. 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 Smic 2022 level 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).