the amount of the Smic will increase by at least 2% in June, indicates INSEE
Rising food prices in the coming months partly explain this upward trend.
The upgrade will be automatic. While French growth should not exceed 0.2% in the second quarter of 2023, according to INSEE, and food prices will rise to 15.4% year on year in June 2023, the minimum wage should benefit from an increase. These prices as well as those of manufactured goods and services would therefore increase due to a probable new automatic revaluation of the minimum wage, “by at least 2%” in June, according to INSEE.
The rise in consumer prices is one of the tools, with the revaluation of the minimum wage on January 1, boosts in the minimum wage. For the moment, it therefore amounts to just over 1709 euros gross, or 1353 euros net. In France, the purchasing power of minimum wage workers is protected by an automatic adjustment mechanism which ensures that the minimum wage increases at least as fast as prices, for the most modest households. In 2022, the minimum wage had already increased in May and August, due to rising prices.
Read alsoWage increases remain below inflation
This mechanism is all the more protective since, as Julien Pouget, head of the business cycle department of INSEE pointed out in mid-March, the price index for low-income households is increasing faster than the overall index.given the weighting of energy and food in its composition“. “Of the 30 OECD countries with a minimum wage, only three provide for an automatic adjustment linked to inflation and only one – France – which provides for it to be repeated during year“, underlines the economist Gilbert Cette, president of the expert group on the Smic which must be consulted by the government before each increase.