third increase! When and how much?

by time news

SMIC INCREASE. The minimum growth wage will be raised this summer for the third time this year. What new amount? When ? We tell you everything about the minimum wage.

[Mis à jour le 19 juillet 2022 08h05] It will increase for the third time in 2022! Indeed, to take into account the galloping inflation observed in recent months (5.8% in June over one year), the minimum growth wage (SMIC) will be increased by 2,01% starting the August 1, 2022. The information is now official, this increase follows the two previous ones operated this year on January 1st (+0,9%) then a second on May 1 (+2,65%). This increase in the Smic can be described as automatic because in reality, the Labor Code obliges the government to operate such an increase as soon as the level of inflation exceeds the 2% mark.

An increase is good news for all employees paid the minimum wage. But how much will this 2.01% increase exactly bring in? What gain will be observed on the payslip at the end of the month? The amount of the minimum growth wage (minimum wage), in other words, the level of remuneration below which an employer is not entitled to pay a full-time employee on the basis of 35 hours per week, should generate a net gain of 26 euros per month. The net Smic rising from 1,302 euros to 1 328 euros. The amount of the minimum gross growth wage goes from 1,645 euros to 1 678 euros. For its part, the gross hourly minimum wage increased by 8.58 euros to 8,76 euros. An increase that is part of a logic of revaluation of social Security benefits and social minima desired by the government, in the same way as for the RSA (+4%), the APL (+3.5%) or the AAH (+4%).

After experiencing a 0.9% increase at the start of 2022, the minimum wage is now raised to 1645,58 euros gross per month, compared to 1,589.47 euros gross monthly last year. In 2021, the Smic had already experienced a fairly unprecedented revaluation of 2.2% to compensate for the price increase of more than 2% between November 2020 and August 2021. It was the first time since 2011 that an automatic increase took place outside the 1st January. As a reminder, if an employer were to pay one of his employees below the legal amount of the minimum wage, the latter is liable to a fine of 1 500 euros. He may also be ordered to pay damages to the employee.

The minimum wage is therefore experiencing a second increase on May 1, 2022. Indeed, to take account of the rise in inflation (+4.5% in March over one year), the minimum growth wage is increased by 2.65% , a net increase of 34 euros per month. In other words, the net minimum wage goes from 1,269 euros to 1,302.64 euros net, an increase recorded on Sunday 1 May. The amount of the minimum wage will once again be increased from August 1, 2022 by 2,01%.

Each year, the amount of the minimum wage is reassessed. As of January 1, 2022, it reached 1,603 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 following inflation came into effect, 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
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

The amount of the monthly net minimum wage reached 1 302,64 euros, compared to 1,269 euros on January 1 and 1,231 euros in 2021. 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

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)
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

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. In January 2022, the amount of the Net hourly minimum wage was approximately 8,37 euros. For example, it was weaker between January and September 2021, measured at 8.11 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 10,85 euros since May 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 May 1, 2022, the net annual Smic amounts to 15 631,68 euros (1302.64×12). For its part, the gross annual minimum wage climbs to 19 746 euros (1645,58 x 12).

The Smic in France is 10.85 euros gross per hour for a working time of 35 hours. Not all member states of the European Union have one, but for those that have it, the differences are quite significant. According to Eurostat data, the lowest Smic in Europe is the Smic in Bulgaria (332 euros per month). The highest minimum wage in Europe is in Luxembourg (2,257 euros).

For some member countries such as Austria, Cyprus, Denmark, Finland, Italy and Sweden, a minimum wage per branch applies. The minimum wage can also, for these countries, be determined by negotiations between the social partners.

The case of Switzerland is a bit special because only 5 cantons have a minimum wage. Geneva, Neuchâtel, Jura, Ticino and Basel-City. It is not the same between the different cantons.

  • Geneva : 3 870 euros
  • Neuchâtel : 3 370 euros
  • Jura : 3 370 euros
  • Ticino : 2 960 euros

Beyond that of the cantons, there is no minimum wage in Switzerland at the country level for several reasons. The first is that Switzerland is a federal state, and each canton remains sovereign. Keep in mind that the Swiss Smic remains, on average, 60% higher than the Smic in France.

Since January 1, 2018, in Germany, a legal minimum amount of wages exists. A minimum wage redefined every two years, henceforth, and reached 9,82 euros of the hour since January 1, 2022. A next revaluation should take place on July 1, 2022 and should bring the german minimum wage to the height of 10,45 euros gross of the hour.

In France, the Smic was revalued on January 1, 2022 to take into account price changes between August and November 2021. Employees were entitled to a minimal increase of 0,9% at the start of the year. The monthly net minimum wage therefore fell from 1,231 euros in 2021 to €1,269.45 in 2022. The monthly gross minimum wage increased from 1,554.58 euros to 1,603 euros on January 1, 2022.

It was then upgraded a second time from 2,65% to May 1, 2022. Enough to bring it to 1 302 euros Net monthly.

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. The 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. An increase is also carried out as soon as the level of inflation exceeds 2%.

Employees who carry out a professional activity in the hotel and catering sector have a different minimum wage from the legal Smic, called minimum wage. At first glance, the hotel minimum wage seems more advantageous than the legal minimum wage, but it is worth taking a closer look. Indeed, the hotel minimum wage is calculated on 39 hours per week, and not over 35h. Another significant difference, when an employee is paid the hotel minimum wage, he automatically benefits from a 10% increase in overtime performed between the 36th and 39th hour. This is why the net monthly hotel minimum wage amounts to 1 430 euros. Beyond the remuneration of the classic minimum wage (1,269.45 euros) due to the increase in overtime. The gross monthly hotel minimum wage amounts to 1 804,65 euros.

The applicable collective agreement generally provides for a conventional minimum wage. If the agreed minimum is lower than the Smic, the employer pays a salary supplement to reach the amount of the Smic. If the conventional minimum is higher than the Smic, the employer pays what is provided for by the collective agreement.

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