This mechanical increase is linked to inflation, which reached 6.2% over one year in November, according to the latest INSEE figures published Thursday morning.
A new rise for the minimum wage, driven by inflation. The minimum wage will increase mechanically by 1.81% in January, announced the Ministry of Labor on Thursday, confirming the calculation made by AFP based on inflation figures published by INSEE this Thursday morning.
As of January 1, 2023, its net monthly amount will be increased to 1,353.07 euros. That is a monthly increase of 24 euros, and 84 euros more compared to January 1, 2022 – an increase of 6.6% over one year, according to the Ministry of Labor. In gross, the monthly Smic will pass the bar of 1700 euros (1709.28 euros). The hourly minimum wage will amount to 11.27 euros, an increase of 20 cents compared to its current level.
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This increase is automatic, calculated each year 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 for workers and employees (SHBOE). True to its policy, the government will therefore not giveboost» additional to the Smic on January 1st.
It follows the recommendation of the panel of economists it consults before each increase. In its latest report, the group of experts chaired by Gilbert Cette advised the government not to grant a “boost”, as it always does since its first opinion in 2008.
In total, in the context of high inflation, the Smic was revalued by 5.6% in 2022, with increases on January 1, May 1 and August 1. After the new increase on January 1, 2023, “it cannot be excluded that the minimum wage will still experience, in 2023, one or more infra-annual revaluations“, affirmed the group of economists. Revaluations can in fact also take place during the year as soon as inflation exceeds 2%.
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