new increase on January 1, how much?

by time news

minimum wage. The minimum growth wage will be increased by 1.8% from January 1, 2023. The bar of 1,700 gross euros will be crossed for the first time.

[Mis à jour le 21 décembre 2022 à 09h56] The minimum growth wage will increase automatically from the January 1, 2023. Indeed, due to persistently high inflation (6.2% in November over one year), the minimum wage will be raised by 1,8%to reach 1 353 euros nets. That is a monthly gain of 24 euros for all employees paid the minimum wage. Its gross amount will for the first time pass the symbolic bar of 1,700 euros, at 1,709 euros. The gross hourly amount is 11.27 euros.

As a reminder, the minimum growth wage corresponds to the legal minimum hourly wage that the employee must receive. It applies to all adult employees, regardless of the form of their remuneration (time, performance, task, piecework, commission or tip). The employer can be sentenced to a fine of 1,500 euros if he pays the employee a remuneration lower than the minimum wage, as well as damages. The minimum wage is revalued each year on January 1, it is indexed to inflation measured for the 20% of households with the lowest incomes.

On the basis of a full-time job, 35 hours per week, a minimum wage earner will receive 1 709 euros gross and 1 353 euros net (after mandatory deductions), for a net gain of 24 euros each month compared to August 2022. Remember that if inflation increases by at least 2% compared to the index observed when the last amount of the minimum wage was established, it is automatically increased in the same proportions. Here are all the minimum wage amounts to know from Sunday January 1, 2023:

  • Net minimum wage as of January 1, 2023: 1 353 euros
  • Gross minimum wage on January 1, 2023: 1 709 euros
  • Net hourly minimum wage on January 1, 2023: 8,94 euros
  • Gross hourly minimum wage on 1 January 2023: 11,27 euros

The amount of the monthly net minimum wage reached 1 353 euros since January 1, 2023, compared to 1,329.05 euros at the start of August 2022. As a reminder, here is the evolution of the amount of the net minimum wage, in recent years, amounted to:

Amount of net minimum wage
YearAmount of the net monthly minimum wage
January 20161 143 euros
January 20171 149,07 euros
January 20181 174,93 euros
January 2019 1 204 euros
January 20201 219 euros
January 20211 231 euros
January 20221 269,45 euros
May 20221 302 euros
August 20221 329, 05 euros
January 20231 353 euros

Each year, the amount of the minimum wage is reassessed. As of January 1, 2023, it reached 1,709 euros gross per month on the basis of 35 hours per week. This increase is the result of both the evolution of inflation and the increase in the wages of workers and employees. As an indication, here is the evolution of the amount of the minimum wage since 2010:

Evolution of the minimum wage since 2010
YearAmount of the hourly minimum wage (gross)Amount of the monthly minimum wage (gross)
January 20108,86 euros1 343,77 euros
January 20119 euros1 365 euros
December 20119,19 euros1 393,82 euros
January 20129,22 euros1 398,37 euros
July 20129,40 euros1 425,67 euros
January 20139,43 euros1 430,22 euros
January 20149,53 euros1 445,38 euros
January 20159,61 euros1 457,52 euros
January 20169,67 euros1 466,62 euros
January 20179,76 euros1 480,27 euros
January 20189,88 euros1 498,47 euros
January 201910,03 euros1 521,22 euros
January 202010,15 euros1 539,42 euros
January 202110,25 euros1 554, 58 euros
January 202210,57 euros1 603 euros
May 202210,85 euros1 645 euros
August 202211,07 euros1 678,95 euros
January 202311,27 euros1 709 euros

The amount of the hourly Smic is extremely variable. Keep in mind that the amount may vary from one payslip to another, due to the amount of social security contributions deducted from the gross hourly minimum wage. As of January 1, 2023, the amount of Net hourly minimum wage is about 8,94 euros.

The amount of the hourly minimum wage (gross) amounts to 11.27 euros, compared to 11.07 euros on August 1, 2022. As a reminder, the amount of the hourly minimum wage, in recent years, was:

Amount of the hourly minimum wage (gross)
YearAmount of the hourly minimum wage (gross)
January 20169,67 euros
January 20179,76 euros
January 20189,88 euros
January 201910,03 euros
January 202010,15 euros
January 202110,25 euros
January 202210,57 euros
May 202210,85 euros
August 202211,07 euros
January 202311,27 euros

The minimum growth wage corresponds to the legal minimum hourly wage that the employee must receive. Deductions are however applicable, in certain cases (apprentices and employees under 18). the hourly rate is of 11,27 euros since January 1, 2023, this is the amount paid for one hour of work. Unlike the monthly Smic, which is modeled on the basis of 35 hours per week.

The amount of the annual Smic is obtained by multiplying the amount of the monthly Smic (above) by the number of months of the year, i.e. 12. Please note, if you benefit from a 13th month paid to your employer, this is not part of the calculation of the annual minimum wage. Referring to the new amount of the Smic 2023 valid since January 1, 2023, the net annual Smic amounts to 16 236 euros (1353×12). For its part, the gross annual minimum wage climbs to 20 508 euros (1 709 x 12).

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