Insufficient Salary Increase and its Impact on Purchasing Power in France: Findings from INSEE and Dares

2023-10-15 10:33:42

According to figures from INSEE, in 2021, the median net salary stood at 2,012 euros for full-time work. This threshold increased a year and a half later, without reaching a level that would ensure the employee has decent purchasing power.

An insufficient salary increase, according to Dares

Between the end of 2021 and the 2nd quarter of 2023, the monthly salary in France increased on average by 6.9%, according to figures from the statistical service of the Ministry of Labor (Dares). However, due to inflation, which has reached peaks in France, this increase is proving insufficient to maintain the standard of living of employees. Moreover, most say that their purchasing power has deteriorated significantly since the rise in prices, estimated at 9% during this same period.

However, employees paid the minimum wage were entitled to a more or less significant increase, which amounts to 10% over 18 months, given the automatic indexation of the minimum wage to inflation. A development which will probably be discussed during the social conference on October 16.

Low wages are most affected by inflation

After the recent salary increases provided by employers in the private sector, the median salary increased from 2,012 euros in 2021 to 2,100, or even 2,150 euros in 2023. A minimal increase which allowed only half of employees to have higher income. However, it is important to note that low wages are the most impacted by the price increase, particularly those who do not reach the minimum wage.

This question will also be addressed during the next social conference which will be led by Prime Minister Elisabeth Borne. The government’s objective is to put pressure on sectors which refuse to review their salary scale, thus preventing the upgrading of low salaries. According to a report carried out at the end of September, no less than 64 branches continued to pay their employees with a salary below the minimum wage. In other words, these employees receive a salary equivalent to the minimum wage and risk not benefiting from an increase in the coming years.

Related Articles:  here is why it is not yet noticeable on the receipt

This salary issue is all the more worrying as the salary increases applied between 2021 and 2023 present disparities. Indeed, if some were able to benefit from an increase of 6.9%, or more, for others, the increase was simply insignificant.

1697372449
#French #people #earn #average

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.