During his general policy declaration before the National Assembly this Tuesday, Prime Minister Michel Barnier announced the revaluation of the minimum wage “by 2% from November 1, in anticipation of the date of January 1.” The monthly net minimum wage will thus be increased to environ 1.426 euros netsagainst 1,398.70 euros currently.
In France, the minimum wage is the only salary indexed to inflation. Each year it benefits from a mechanical increase on January 1 and revaluations also occur during the year as soon as inflation exceeds 2%. The minimum wage has increased eight times since January 2021, including four times during the year due to inflation. There last revaluation was on January 1st.
The government can also choose to go beyond the automatic increase, the famous “boost”but there has not been one since 2012. In this case, the Prime Minister announced a simple “anticipation” of automatic revaluation.
Note, the number of employees paid the minimum wage has increased significantly in France. As of January 1, 2023, 17.3% of employees were affected.
Furthermore, as the minimum wage increases faster than the rest of salaries, certain minimums in professional sectors are caught up. “There remain in our country professional sectors in which the minimums are lower than the minimum wage, this is not acceptable and this will have to be the subject of rapid negotiations“, insisted the head of government.
The standard of living, a priority project
“In addition, it has now been shown that our cost reduction system slows down the rise in wages above the minimum wage: we will see it again,” continued Michel Barnier, who cited among his five priority projects that of “standard of living of the French”.
Exemptions, maximum for salaries at the minimum wage level, introduced to support employment, are today accused by certain economists of slow down salary progression by creating “low wage traps”. This is why the head of government intends to review the contribution reduction system.
The Prime Minister said he hoped that “that all French people hit by the high cost of living will see an improvement in their standard of living next year.”