Different context, same recommendations. In its annual report, sent on Wednesday 30 November to the government and the social partners and to which The world has had access, the group of experts on the minimum wage unsurprisingly recommends not to give a boost to the minimum wage at 1er January 2023 and proposes three avenues for reform to thoroughly review the current upgrading system.
The increase in the minimum wage is now indexed to two values: inflation, following the consumer price index for the 20% of the poorest households, and half of the annual increase in purchasing power. the basic hourly wage of workers and employees. In “normal” times, i.e. without any particular inflation, this automatic increase takes place on 1er January of each year. In addition to this, the government can give an additional bonus, the famous “boost”. Set up in 2008, the group of experts is precisely responsible for enlightening the executive in the orientation to be given to the minimum wage.
On the other hand, in this period of high inflation, which amounted, according to the latest calculations by INSEE, in September, to 6.2% over one year, the increases are linked. After two increases in 2021, the minimum wage saw three new revisions in 2022: at 1er January, to 1er May and 1er August, i.e. a total of +5.6% over one year (to stand today at 11.07 euros gross per hour, i.e. 1,678.95 euros gross monthly). If we include the revaluation of October 2021, the increase is even 8%.
“Strengthening the role of collective bargaining”
Therefore, knowing that the group, chaired by economist and professor at Neoma Business School, Gilbert Cette, never usually recommends a boost, it is deemed even less necessary in this inflationary climate. “The probable revaluation of 1er January 2023, linked to automatic revaluation mechanisms, will protect the purchasing power of minimum wage employees against the rise in the price index., says the report. According to the group’s calculations, the automatic revaluation of the 1er January 2023 would be around 1.8%.
This indexation of the minimum wage to inflation divides economists and politicians. Some consider it essential to protect the purchasing power of the most modest and even ask to apply the measure to all salaries. Others believe, however, that it could lead to a rise in the cost of labor fatal to companies, which would result in massive job losses.
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