Anticipated by INSEE in a note published on Wednesday, this increase is a mechanical consequence due to the rise in prices. It should take place during the second quarter of 2022.
“The Smic will be automatically revalued, probably before the summer, and for an amount of around 25 euros net“, declared Bruno Le Maire, to the television news of TF1, Thursday March 17. It is not a “boostfrom the government to help certain low-income households cope with the rise in energy prices (as it was able to do for companies with the resilience plan), but from a consequence of inflation. This forecast had already been announced the old by INSEE in its new note on the economy published on Wednesday 16 March. This revaluation estimated at 32 euros gross per month, according to INSEE, would be the second in a few months after the automatic increase on January 1 (plus 13.65 euros).
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The reason for this gain can be found in the inflation figures, explains INSEE: “The dynamism of wages is likely to continue in the second quarter, especially as a further revaluation of the minimum wage, of at least 2%, could take place given the possible evolution of prices“Writes the organization in its note. This should increase the minimum income to 1635 gross monthly for 35 hours of work per week.
Complex rising mechanisms
Several mechanisms may be at the origin of a rise in the minimum wage. One is variable and depends on political will. These are the famous “thumbs up“. These have become rare in recent years. The previous one dates from July 2012. Newly elected François Hollande decides on a 2% rise in the minimum wage (including 1.4% for inflation in advance and 0.6% for a “boost”).
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The other two, on the other hand, are automatic. One depends on inflation. When the consumer price index increases by more than 2%, compared to the last rise in the minimum wage, for the 20% of households with the lowest incomes. This is what will probably happen quickly (in the second quarter of 2022, the average price level will be at least 2% higher than on January 1 for the most precarious quintile). The other depends on the gain in average purchasing power of workers and employees. In this situation, the minimum wage is revalued by half of this increase.
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