net, gross, hourly… Its new amount

SMIC INCREASE. The Smic has increased in France in 2022. Enough to allow beneficiaries to compensate, a little, for inflation. Here is the new amount, net and gross.

[Mis à jour le 5 août 2022 16h45] A minimum growth wage (SMIC) which increases a little, but a cost of living which flies away. Due to the high inflation experienced by France for a year (estimated at 6,1%), the minimum wage was automatically increased on August 1, its increase being linked to inflation if the latter is at least 2%. Thus, this remuneration, which approximately 2 million employees in France receive, was increased by 2.01% after having already experienced two increases since the beginning of the calendar year. A purely mechanical increase which is not due to the current government or parliamentarians, this provision having been written in black and white in the law since 2008. If the trend were to be confirmed with a new increase in inflation, the minimum wage would continue also to be upgraded.

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 Smic is revalued each year on the 1is January, it is indexed to inflation measured for the 20% of households with the lowest incomes.

This revaluation of the Smic is carried out on the basis of half of the gain in purchasing power of the average hourly wage of workers and employees. Finally, if inflation increases by at least 2% compared to the index observed when the last amount of the Smic was established, it is automatically increased in the same proportions. This was the case for the revaluation of August 1, 2022.

For the third time this year, the gross hourly minimum wage increased, rising on August 1 from 10.85 euros to 11.06 euros. Thus, on the basis of a full-time job, 35 hours per week, an employee earning the minimum wage will receive 1 678,95 euros gross and 1 329,05 euros net (after mandatory deductions), for a net gain of 27 euros each month. Here are all the minimum wage amounts to know as of Monday August 1, 2022:

  • Net minimum wage as of August 1, 2022: 1 329,05 euros
  • Gross minimum wage on August 1, 2022: 1 678,95 euros
  • Net hourly minimum wage on August 1, 2022: 8,77 euros
  • Gross hourly minimum wage on August 1, 2022: 11,06 euros

The amount of the monthly net minimum wage reached 1 329,05 euros since August 1, compared to 1,302 euros at the beginning of May and 1,269 euros on January 1. 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
Year Amount of the net monthly minimum wage
January 2016 1 143 euros
January 2017 1 149,07 euros
January 2018 1 174,93 euros
January 2019 1 204 euros
January 2020 1 219 euros
January 2021 1 231 euros
January 2022 1 269,45 euros
May 2022 1 302 euros
August 2022 1 329, 05 euros

Each year, the amount of the minimum wage is reassessed. As of August 1, 2022, it reached 1,678.95 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. On May 1, 2022, a new increase had entered into force, bringing the gross minimum wage to 1645.58 euros. As an indication, here is the evolution of the amount of the minimum wage since 2010:

Evolution of the minimum wage since 2010
Year Amount of the hourly minimum wage (gross) Amount of the monthly minimum wage (gross)
January 2010 8,86 euros 1 343,77 euros
January 2011 9 euros 1 365 euros
December 2011 9,19 euros 1 393,82 euros
January 2012 9,22 euros 1 398,37 euros
July 2012 9,40 euros 1 425,67 euros
January 2013 9,43 euros 1 430,22 euros
January 2014 9,53 euros 1 445,38 euros
January 2015 9,61 euros 1 457,52 euros
January 2016 9,67 euros 1 466,62 euros
January 2017 9,76 euros 1 480,27 euros
January 2018 9,88 euros 1 498,47 euros
January 2019 10,03 euros 1 521,22 euros
January 2020 10,15 euros 1 539,42 euros
January 2021 10,25 euros 1 554, 58 euros
January 2022 10,57 euros 1 603 euros
May 2022 10,85 euros 1 645 euros
August 2022 11,07 euros 1 678,95 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. Since August 1, 2022, the amount of the Net hourly minimum wage was approximately 8,76 euros.

The amount of the hourly minimum wage (gross) amounts to 10.85 euros, compared to 10.57 euros on January 1, 2022 and 10.25 euros previously. As a reminder, the amount of the hourly minimum wage, in recent years, was:

Amount of the hourly minimum wage (gross)
Year Amount of the hourly minimum wage (gross)
January 2016 9,67 euros
January 2017 9,76 euros
January 2018 9,88 euros
January 2019 10,03 euros
January 2020 10,15 euros
January 2021 10,25 euros
January 2022 10,57 euros
May 2022 10,85 euros
August 2022 11,07 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 11,07 euros since August 1, 2022, 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 2022 valid since August 1, 2022, the net annual Smic amounts to 15 948,71 euros (1329.05×12). For its part, the gross annual minimum wage climbs to 20 147,40 euros (1 678,95 x 12).

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