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The minimum wage remains a major concern for workers in France. While inflation directly impacts purchasing power, the automatic revaluation of the minimum wage is a life-saving mechanism for many workers. But at present, this long-awaited process seems uncertain, leaving a bitter taste for some. Between hopes and economic realities, where are we really?
Good news for purchasing power
After months of outbreak, inflation in France finally seems to be taking a break, but it’s not all good news for everyone.
Since 2021, rising prices have weighed heavily on household budgets, with peaks regularly exceeding 2%Each time this threshold was crossed, an automatic increase in the minimum wage was triggered, offering a little breathing space to French households.
In 2024, many were hoping for a new increase in the minimum wage. Especially after the previous ones successive increases.
To have
Increase in the minimum wage to more than 1,800 euros: the date of the planned increase
However, theInsee released unexpected figures in August: Inflation has slowed, fluctuating between 1.6% and 1.7%A reassuring drop in purchasing power, but a disappointment for workers who were hoping to see their minimum wage increase before the end of the year.
Result ? The minimum wage will remain frozen at its current level. A situation that worries many employees. Particularly those who were counting on this increase to cope with the increase in prices in supermarkets and on their daily bills.
Bad news for minimum wage workers
The initial scenario was nevertheless promising. In March 2024, everything seemed to indicate a new increase in the minimum wage. With inflation spiraling out of control, an automatic increase seemed inevitable as early as August. And households were already preparing for this breath of fresh air for their finances. But over the months, enthusiasm gradually gave way to uncertainty.
Hopes of a revaluation of the minimum wage before the end of 2024 seem to be fading. The final inflation figures for August, published Friday September 13 by theInseeconfirm this trend. For an automatic increase in the minimum wage to materialize, several criteria come into play.
In particular, it is necessary that Consumer Price Index (CPI) excluding tobacco for the 20% of the poorest households increases by 2%. And this, compared to that taken into account during the last revaluation, that of November 2023 in this case.
To have
Increase in the minimum wage this summer, it will reach a symbolic record for the first time
When will the minimum wage increase finally take place?
Although theInsee was hoping for a rise in the minimum wage for September or October 2024 due to the rise in summer inflation, the situation is less promising. Prices have indeed increased, but not enough to exceed the 2% threshold.
L’Insee also believes that the minimum wage will not be automatically revalued in November or December. months of September and October are, for their part, traditionally calmer in terms of price variation for seasonal reasons. All this makes this possibility unlikely.
It therefore seems that the long-awaited automatic revaluation will probably have to wait until January 1, 2025. This is the date on which the minimum wage is adjusted as it is every year at the beginning of the year. In the meantime, employees will have to wait a little longer before seeing their minimum wage finally increased.
