The automatic revaluation of the minimum wage in France on January 1, 2024 should be of the order of 1.7%, according to the annual report of a group of experts on the SMIC published Thursday, which recommends that the government refrain from any “boost”.
The net minimum wage for full-time work, currently 1,383 euros, would thus increase by around 23 euros to around 1,406 euros. “The group of experts recommends refraining from any boost to the minimum wage on January 1, 2024. The only automatic revaluation mechanisms preserve the purchasing power of the minimum wage in view of the increase in the price index at the consumption”assure the experts.
An increase calculated on two criteria
The minimum wage benefits from a mechanical increase each year, calculated according to two criteria: the inflation observed for the 20% of households with the lowest incomes and half of the gain in purchasing power of the basic hourly wage of workers and employees (SHBOE). “Over three years, from January 1, 2021 to December 31, 2023, the minimum wage will have been increased seven times for a total of 13.5%,” notes the report.
“No help, because it is not effective in fighting poverty, because it could increase poverty with effects on the employment of vulnerable people”declared to AFP the president of the group of experts, the economist Gilbert Cet.
The general secretary of the CGT Sophie Binet contests this analysis, highlighting wages indexed to inflation in Belgium or higher remuneration in industry in Germany.
“The real experts on the minimum wage are the employees who are more and more numerous, and especially many of them are paid the minimum wage,” she told AFP, noting that 57% of minimum wage earners are now women, compared to 55% last year.
“Legal minimum wage increases in France are not very effective in reducing working poverty”
For the expert group, “the legal minimum wage increases in France are not very effective in reducing working poverty, the main factors of which are a low number of hours worked and family configuration“, in reference to part-time work and single-parent families.
“An additional increase in the minimum wage would also contribute to further narrowing the salary range at the minimum wage level.“, warn the experts while the percentage of employees directly affected by the revaluation of the SMIC on January 1 increased from 12% in 2021 to 17.3% in 2023.
“There are 3.1 million employees who are paid the minimum wage, compared to 2.5 million last year”notes Sophie Binet for her part, adding that this “Dazzling increase demonstrates the decline in remuneration”.
Reform the system by changing the indexing rules?
Mr. This emphasizes that exemptions from charges on low salaries also contribute to this decline, noting that an increase of 100 euros for an employee on the minimum wage costs the employer 483 euros.
Like last year, experts are finally recommending reforming the system by modifying the indexation rules. Among their proposals is automatic indexation on the average of changes in minimum wages for a panel of branches, according to the Dutch or German model.
Proposals described as “red rag” and “real provocation” by the general secretary of the CGT. “The only thing that protects employees in France is the minimum wage. It is not increasing enough but fortunately it is there because other salaries are increasing much less”notes Sophie Binet.