According to the Ministry of Labour, the minimum wage should to augment 2.4% and 2.6% from May 1, 2022. Indeed, we have been witnessing high inflation for several months. To remedy this and help the most vulnerable households, the State has therefore decided to increase the amount of the minimum wage.
According to our colleagues from AFP, the State should indicate its exact amount from April 15. Indeed, it is at this time that INSEE will publish its final estimate of the rise in prices in March.
In January, we had already noted an increase in the minimum wage of 0.9%. This increase was nothing compared to the exceptional increase of October 2021, up to 2.2%! It should be noted that this increase was already explained by inflation. If today the recipients of the Smic receive 1,269 euros net per month, it should increase further on May 1 to reach a range between 1,299 and 1,304 euros on May 1. This represents an increase of 30 to 35 euros per month.
What does the Labor Code say?
But if the State has decided to review the amount of the Smic, it is because the law obliges it to do so. Indeed, the Labor Code provides that “when the national consumer price index reaches a level corresponding to an increase of at least 2%”the minimum wage is raised “in the same proportion” the next month. However, INSEE has published its latest figures on l’inflation last Thursday. And we can note that the rise in prices exceeds this threshold in March compared to November 2021. The month of November was indeed the reference month for the last revaluation which took place in January.
In addition, Julien Pouget, head of the economic situation department of INSEE, recalls that the price index for low-income households is increasing faster than the overall index ” given the weighting of energy and food in its composition« . The worst-off households will thus see the Smic revalued, but not only!
Because several social benefits are concerned. On average, this corresponds to an increase of 1.8%, which is in line with inflation, according to the Ministry of Solidarity and Health. Thus the RSA (active solidarity income) will be concerned. Remember that the State pays this aid to any person over the age of 25, without resources. This ensures a minimum level of income. The State thus revalues the RSA to 575.52 euros per month for a single person without children.
Smic: At the origin of this revaluation: strong inflation
As for the activity bonus, it will increase by 1.8%. This aid aims to encourage the most precarious workers to return to work. Thus, the lump sum for a single person will be 563.68 euros per month. Finally, the allowance for disabled adults (AAH), disability pensions and all family benefits will also see an increase of 1.8%.
Another boost eagerly awaited by the French : the “fuel discount”. Faced with soaring oil prices, the government has promised to hand over at least 15 cents at the pump. And this good news will come into effect on Friday, April 1st. But beware, this measure should only last four months. For the state, this has a cost. And that amounts to no less than three billion euros from public finances. In metropolitan France excluding Corsica, this discount will reach up to 18 cents per liter.
France is not the only country that has a salary minimum like the minimum wage. And it is in Luxembourg that we find the highest European minimum wage: it exceeds 2,200 euros per month. The lowest minimum wage, on the other hand, is in Bulgaria, and hardly reaches 330 euros per month.