The new automatic revaluation of the minimum wage is becoming clearer. The final inflation data for June published this Wednesday by INSEE confirms an increase of more than 2% in the consumer price index for households with the lowest incomes compared to the last revision of the minimum wage on May 1st.
Automatic revaluation against inflation
The Labor Code provides for an automatic revaluation of the minimum wage during the year when the consumer price index (excluding tobacco) for the 20% of households with the lowest incomes (first quintile) increases by more than 2% compared to the index taken into account when establishing the last amount of the minimum wage. It is then increased automatically in the same proportions.
In detail, this first quintile price index fell from 109.37 in March to 111.57 in June. The Smic will thus be revalued by 2.01%, an increase confirmed by Bruno Le Maire (“2%” he summarized), in an interview granted this Friday, July 15 to the Parisian, and which corresponds to about 26 € net more per month. In less than a year, the minimum wage will have increased by more than 8%, i.e. €98 net more per month for a full-time job “, he specified. According to the calculations
€1,328.82 net
The minimum wage is currently €1,645.58 gross per month (€1,302.64 net) on the basis of the legal working time of 35 hours per week, and €10.87 in gross hourly amount. It should therefore rise on August 1 to €1,678.66 gross (€11.09 per hour) and €1,328.82 net.
This will be the third increase in the minimum wage this year after an initial increase of 0.9% on January 1, then that of 2.65% in May.