Faced with high inflation in March confirmed this Friday by INSEE in its final figures, the minimum wage will increase on May 1st. The booklet A could also experience a new increase after that of February 1, unless the context benefits the popular savings account (LEP).
It’s now official. INSEE confirmed on Friday that inflation had reached 4.5% in March over one year, driven among other things by the rise in energy and food prices due in particular to the war in Ukraine. Figures that we had not seen for forty years, which will therefore have repercussions.
A new increase in the booklet A?
Will the livret A take advantage of inflation to see its rate go up again? As a reminder, it went from 0.5% to 1% during the revision of February 1, 2022, a first since February 1, 2020. But the current context could lead the Banque de France to raise it again. A double increase in a short period of time which would be a first in the history of the livret A, while the revision of its rate has historically only occurred twice a year, on February 1 and August 1.
However, the Minister for the Economy and Finance explains on his site that two new review dates are possible, adding to the traditional chances (February 1, August 1) May 1 and November 1.
For these two new dates, the revision can take place on a proposal from the Banque de France if the latter considers that the variation in inflation or in the monetary markets is very significant, the minister further explains, adding: a change in the rate may henceforth exceed 1.50%. It is therefore thanks to this that the booklet A could go back to May 1.
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A boost on LEP?
Another savings product that could be impacted, the popular savings account (LEP). Since February 2020, his remuneration has been designed to be adjusted to inflation, in order to protect the savings of the less wealthy French people against a loss of purchasing power. This is why it had gone directly from 1% to 2.2% on 1 February. Again, the public authorities could decide to raise its rate to 3.2% on May 1.
Why the LEP rate can still pass 3.2% on May 1
Smic also on the rise
The Smic will for sure experience an increase on May 1st. This increase is mechanical because the Labor Code provides that when the national consumer price index reaches a level corresponding to an increase of at least 2% compared to the index observed when the Smic was established immediately before, the minimum wage is increased in the same proportion the following month.
The minimum wage will be upgraded to between 2.65, the Minister of Labor announced on Friday. Which will make it go 1645.58euros gross, against 1603euros gross currently. That is an increase of 33.64 euros net, since from 1269 euros net, it will then rise to 1302.64 euros.