For the third time, the minimum wage will be raised this year. Olivier Dussopt, the Minister of Labor, confirmed this, Thursday July 7, during a meeting with the social partners. The date of entry into force and the exact amount of the increase have not yet been decided, but it should, unless surprised, take effect no later than 1er october. The unions want the State to be more demanding with regard to the professional branches which are slow to pass on the increase in the minimum wage in collective agreements.
This new increase in the minimum wage was mentioned by INSEE in its economic note of 24 June. It is the consequence of the application of provisions aimed at guaranteeing that the minimum remuneration evolves at least as fast as inflation. The previous increase – of 2.65% – dates back to 1er may. By adding those that occurred on 1er November 2021 and the 1er January, the minimum wage will have increased by 5.9%, reaching just over 1,302 euros net per month.
Attributable to soaring prices, these successive readjustments are putting pressure on the professional branches. Of the 171 who are monitored by the Ministry of Labour, nearly two-thirds (i.e. 112) had, on the 1er July, a salary grid comprising at least one coefficient lower than the minimum wage. These so-called “non-compliance” situations are linked to the difficulties that employers and unions encounter in getting together and reaching a compromise at sectoral level. In some cases, there are even “structural blockages”but the Department of Labor says they are “in sharp decline” compared to the end of 2021. Among the branches where social dialogue has proven to be unsuccessful or sluggish, there is that of prevention and safety: its salary grid contains three levels below the minimum wage, the last agreement dating back to the end of September 2021, according to the General Directorate of Labour.
Stricter counterparties
Thursday, Mr. Dussopt held a speech imbued with benevolence and firmness with regard to the social partners. He greeted the ” progress “ accomplished in the branches which have ceased to be behind the minimum wage, while displaying its determination to use “all the levers” available to eliminate cases of ” noncompliance “. An allusion, in particular, to an article of the bill for the protection of purchasing power, presented – the same day – in the Council of Ministers: it will allow the administration to merge a “bad student” branch with another branch .
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