Private sector employees lost 1% of purchasing power in 2022

2023-11-08 16:00:10

This has not happened in a quarter of a century, if we put aside the two exceptional years of 2020 and 2021. In 2022, the purchasing power of salaries in the private sector fell by 1%, according to the data published Wednesday November 8 by the National Institute of Statistics and Economic Studies (Insee). In absolute value, private sector employees received 2,630 euros net on average per month, for a full-time equivalent; at the lowest of the scale, one employee in ten earned less than 1,436 euros, losing 0.1% of purchasing power. The 10% of best-off employees received on average more than 4,162 euros net, but showed a 1.4% drop in their purchasing power.

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Only the purchasing power of the lowest salaries was maintained in 2022, due to the revaluations of the minimum wage that occurred during the year to follow the rise in consumer prices, specifies INSEE. Managers lost on average a little more than workers (–1.2% compared to –0.9%), since their remuneration fell more sharply in relation to inflation than low salaries.

However, indicates the organization, the remuneration of some 20 million private sector employees, out of 25 million employees in total, increased by 4.4% for gross, and 4.2% for net, increases “particularly high compared to the last thirty years”. But these salary renegotiations and the payment of the exceptional purchasing power bonus, which has become a value sharing bonus, were not enough to compensate for the increase in prices, which reached 5.2% over the year 2022. More than one in four employees benefited from this bonus in 2022, according to INSEE, for an average amount of 803 euros per beneficiary.

Salary disparities at their lowest

The decline in the purchasing power of net wages does not mean, however, that households have suffered an equivalent decline in their purchasing power, once all of their income is taken into account, transfers and social benefits included. “Net salary is not equivalent to disposable income”recalls Vladimir Passeron, head of the employment and earned income department at INSEE.

In his economic report of March 15the institute details that the purchasing power of gross disposable income of households increased by 0.2% in 2022, following 2.3% in 2021. The dynamism of property income, in particular, partly offset the decline in wages in constant euros for households owning one or more rental properties.

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