2023-10-15 14:16:21
For the OECD as for INSEE, a low salary is defined as being less than two thirds of the median salary (as many French people earn more, as many earn less). Nearly one in ten employees are affected.
According to the latest data from the National Institute of Statistics, in 2021, the median net monthly salary in Full-Time Equivalent (EQTP) was 2,012 euros in the private sector, placing the low salary threshold below 1,341 euros. , a little above the minimum wage (1,258 euros at the end of 2021).
The minimum wage/inflation pair
In France, the minimum wage is the only salary indexed to inflation. It is reevaluated every January 1, and each time prices have increased by more than 2%. Given the level of inflation, the minimum wage has been increased in recent years, three times in 2022 and twice in 2023. The last increase dates back to May 1, to 1,383 euros net. The number of employees affected was 2.5 million as of January 1, 2022.
As the minimum wage increases faster than the rest of wages, certain sector minimums are caught up. Others, rarer, are below the minimum wage for a longer period of time.
The last revaluation on May 1 thus brought the number of branches with minimum wages below the minimum wage to 147 out of 171 with more than 5,000 employees. Since then, this figure has been reduced to 60 branches, recently indicated the Minister of Labor Olivier Dussopt, noting that “ 60 is too much ”, but welcoming the fact that more than 80 branches “ have done this upgrade work ».
A lower minimum does not mean that employees are paid below the minimum wage: the employer must fill the gap. But when several levels of seniority are caught up by the minimum wage, this generates a “ settlement ” salaries.
Trapdoor effect
To promote employment, workers paid around the minimum wage, but also above, are the target of exemptions from company contributions: general reduction in employer contributions on low salaries (less than 1.6 minimum wage), reductions in health insurance contributions (up to 2.5 SMIC) and family allowances (up to 3.5 SMIC).
The unions believe that these measures act as a “ low-wage trap » since the closer the salaries are to the minimum wage, the greater the exemptions. They are calling for certain exemptions to be conditional on companies that do not play the game of salary negotiation.
1697417682
#wages #talking #affected