As of January 1, 2023, the minimum growth wage (SMIC) will rise once more. On Thursday, December 15, the Ministry of Labor confirmed that it would be reassessed by 1.8%. This is a net amount of 1,353 euros and a significant gain of 24 euros. For the first time, the gross minimum wage exceeded 1,700 euros. All these changes should get the unions talking. Other changes might also arrive during the year. A possible boost to match this one was also discussed. We take stock in this article.
A 1.8% increase in the SMIC on January 1, 2023
On December 15, the Ministry of Labor affirmed that the minimum wage will experience a revaluation from January 1, 2023. Excellent news for employees who receive this salary. According to the calculation of the ACP, the revaluation in 2023, is estimated at 1.8%.
As a reminder, the minimum growth wage (SMIC) corresponds to the legal minimum wage that an employee must receive. She is the subject ofan automatic increase every year. This increase considers two criteria, namely:
- L’inflation observed in the 20% of households with the lowest incomes.
- Half the gain of purchasing power of worker and employee basic hourly wages (SHBOE).
The gross monthly minimum wage for a full-time job of 35 hours, now amounts to 1,700 euros (1,709.28 euros). After the withdrawal of compulsory deductions, the net monthly minimum wage will be equal to 1,353 euros. It is therefore a question ofan increase of 24 euros net. The gross hourly minimum wage, meanwhile, will rise to 11.27 euros, or 20 cents more than its current amount. The gross annual minimum wage in 2023 is therefore estimated at 20,511.36 euros. On his side, the net annual minimum wage is estimated at 16,236 euros.
According to a group of independent government economists, other revaluations of the SMIC might very well occur In progress :
“It cannot be ruled out that the SMIC will still experience, in 2023, one or more infra-annual revaluations”.
An automatic revaluation of the minimum wage in the face of the loss of purchasing power
Every January 1 of each year, the SMIC obtains a revaluation. But depending on the economic situation, revaluations of the minimum wage may occur throughout the year when inflation exceeds the 2% mark.
This year, INSEE affirmed that inflation reached an alarming 6.1%. This is the reason why the SMIC was revalued 3 times in 2022. The first increase of 0.9% took place on 1 January. A first exceptional increase of 2.6% occurred on May 1. The last increase was 2.01%, as of August 1.
Since the beginning of the year, the SMIC increased by 120 euros gross, i.e. 84 euros net. These successive increases are welcomed with open arms by the employees. After all, it has to be to cope with soaring prices for energy, food, etc. The employers, on the other hand, is more reluctant, because the charges also increase.
Given the last revaluation in August, the automatic increase in the SMIC in January 2023 will be a little different. Selon BFM Business :
“Because of the revaluation of the minimum wage on August 1, the price increase taken into account for the automatic increase in January relates only to the months of July, August, September, October and November. »
No boost in 2023
Since 2008, before the wage increases, the government always consult a panel of economists. In fact, the executive can give a “boost” in addition to this automatic increase.
However, the last boost dates back to 2012. Once once more, this group of experts under the chairmanship of Gilbert Cette, showed himself once morest this measure.
Their decision is explained in a recent report. These experts asserted that an automatic revaluation “allows protection of the wage purchasing power of persons remunerated at the legal minimum wage”.
But according to these economists, going beyond this increase might be detrimental to the employment of vulnerable people.
“A too strong dynamic of the minimum wage might have negative effects on the employment of the most vulnerable workers,” they underlined.
The government followed their recommendations. He there will therefore be no additional hit to the SMICat the beginning of the year.
A method of calculation to change?
It is the same group of economists who proposed an improvement to the calculation of the SMIC. According to these economists, the current formula was not enough to fix “working poverty”. Yet they claimed that the two causes of this phenomenon “are the number of hours worked (forced part-time) and the configuration of the household”.
Also, these economists claim that the current system was “unsuitable” to achieve this goal. They therefore considered a solution to avoid successive increases in the amount of the SMIC as soon as the economic situation changes.
Experts then suggest a change in the calculation of the revaluation of the minimum wage. They recommend no longer basing this increase on inflation. According to them, it would rather “automatically index the SMIC on the average of the evolutions of the minimum wages of a panel of professional branches”.
From that moment, the SMIC would change with wages. However, it is very likely that the trade unions will oppose such a measure. As a reminder, the latter are still fighting for the indexation of wages to inflation. An ambitious project discontinued since 1980s.
Moreover, Force Ouvrière has already responded to this proposal in a press release. This finds the “recommendation particularly unwelcome at a time when the branches encounter difficulties in complying with the compliance of the conventional minima with the SMIC”.
Source : Ladepeche
