The net minimum wage should be 1,426 euros on November 1st. This will be the ninth increase in the minimum wage since January 1, 2021, for an increase of 16% over the period.
The Prime Minister announced an increase in the minimum wage on November 1. This will be 2% and will not be a boost but an anticipation of the date of January 1st.
After this ninth increase since January 2021, the minimum wage should for the first time cross the 1,400 euros net mark. Currently the gross minimum wage is 11.65 euros per hour, or 1766.92 euros gross monthly, which is equivalent to 1398.70 euros net for 35 hours of work per week.
The 2% increase on November 1 should therefore increase it to just over 1,426 euros net.
In France, the minimum wage is the only salary indexed to inflation. It benefits each year from a mechanical increase on January 1st and revaluations also occur during the year as soon as inflation exceeds 2%.
The government can choose to go beyond the automatic increase with a “nudge”, but there has not been one since 2012. In this case, the Prime Minister announced an “anticipation”.
Salaries are not keeping up with the increase
Since January 1, 2021, the net amount of the minimum wage has increased from 1,230.60 euros to 1,426 euros on November 1, an increase of 16%. An increase higher than the consumer price index which INSEE estimates at 15.1% between January 2021 and August 2024.
A minimum wage which also increases faster than the rest of salaries. Certain branch minimums are also caught up and the branches are thus regularly called to order by the government.
Exemptions, maximum at the minimum wage level, introduced to support employment, are today accused by certain economists of slowing down wage progression by creating “low wage traps”. This is why Michel Barnier intends to review the contribution reduction system.
The number of employees paid the minimum wage has increased significantly in France. As of January 1, 2023, 17.3% of employees were affected.
