Why the minimum wage will automatically increase on October 1

Inflation of 2.2% will increase the minimum wage by 34 euros on the first day of next month.

Galloping inflation left less and less doubt about an imminent increase in the minimum wage. “We can imagine, if inflation is very high on September 15 that the minimum wage increases automatically on 1is October “ Bruno Le Maire had thus indicated on September 6 on BFM.

It is now a certainty. INSEE announced on Wednesday an inflation of 2.2% of the price index serving as a basis for possible revaluations since the last revaluation of the minimum wage. The increase in the gross monthly minimum wage (currently 1,555 euros) will be 35 euros.

Legally, three cases can lead to an increase in the minimum wage. First, the minimum wage is revised every year on the 1is January on the basis of half of the purchasing power gain of the average hourly wage of workers and employees. 1is January 2021, it had increased by 0.99%, the smallest increase in 3 years.

Apart from this annual meeting, the minimum wage may also be subject to an automatic adjustment in the same proportions as inflation when the latter exceeds the threshold of 2% compared to the date of establishment of the last amount of the minimum wage, ie November 2020. This is precisely the mechanism that comes into force here.

Last case, the government can proceed at any time to an increase “ boost »Minimum wage to help households in greatest difficulty. This mechanism was used for the last time in 2012. Honoring one of the promises made by François Hollande during his presidential campaign, the Ayrault government had decided to increase the minimum wage by 0.6% in addition to an early revaluation of the 1is following january. But for Bruno Le Maire, there is no question of adding to the increase due to inflation an additional increase in the minimum wage. “ Giving a helping hand is giving a penknife to the recovery of employment »Warned the Minister of Economy and Finance on BFM.

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