The minimum wage, the basis of purchasing power for nearly 20% of employees, has seen eight successive increases since January 2021. In November 2024, an anticipated boost of 2% is added, demonstrating a desire to support the lowest incomes.
The minimum wage, a social and economic protection mechanism
The SMIC, or inter-professional growth minimum wage, provides a minimum level of remuneration for all employees, guaranteeing a decent minimum in the relationship between employer and employee. Its primary mission is to fight against inequalities and preserve the purchasing power of the lowest-income workers.
Created under the name Smig by the law of February 11, 1950, this minimum wage aimed to boost consumption and reduce poverty. Initially set at 64 francs, it was indexed to price developments from 1952, in order to follow inflation. In 1970, the minimum wage replaced the minimum wage, with the aim of bringing this minimum closer to average wages and ensuring better economic protection for employees. Since then, it has remained an essential instrument of social regulation, adapting its value over time to respond to economic challenges.
Who benefits from the minimum wage in France?
The minimum wage applies to all adult employees in the private sector, regardless of the form their remuneration takes. Whether they are paid by the hour, by the month, by the task, by output, by the piece or by commission, everyone benefits from this protective base. Even professions relying on tips are affected.
In 2023, according to Dares data, 17.3% of private sector employees, or around 3.1 million people, received this minimum wage. This figure is particularly marked among part-time workers or in very small businesses (VSE). The question is all the more crucial for women, who represent 57.3% of beneficiaries in this sector, thus highlighting an economic reality with complex nuances.
Income taken into account in the calculation of the minimum wage
The minimum wage in mainland France and in overseas communities includes several components, ensuring a minimum wage for all workers. The base salary, benefits in kind such as meals or accommodation provided, as well as bonuses directly linked to productivity make up this minimum remuneration. All of these elements must at least equal the minimum inter-professional growth salary.
On the other hand, certain forms of income are not taken into account in the calculation of the SMIC. Reimbursements of expenses, increases for overtime, as well as bonuses for seniority, attendance, participation or profit-sharing, remain outside this framework. Likewise, vacation or end-of-year bonuses are excluded, unless they are integrated into the salary by monthly installments.
Understand the difference between the gross and net minimum wage
The gross minimum wage represents the total amount before any deduction, a figure which includes the basic salary as well as the contributions owed by the employer. This is the initial promise, the one displayed on the contract, but which, once subject to tax and social rules, is transformed for the employee. In fact, this gross amount is intended to cover various social contributions, such as retirement, health insurance or even unemployment.
The net minimum wage is what the worker actually receives, once all these charges have been deducted. This is the disposable salary, the one that falls into the account at the end of the month. In short, it is the version of the minimum wage that speaks directly to the wallet, concrete and tangible.
New revaluation of the minimum wage in November 2024: what you need to know
Since November 1, 2024, the minimum wage has benefited from an anticipated increase of 2%, marking a new boost decided by the Minister of Labor Astrid Panosyan-Bouvet. Announced during the Council of Ministers on October 23, 2024, this increase aims to preserve the purchasing power of employees in response to the economic situation.
The gross hourly minimum wage thus rose to 11.88 euros, while the net minimum wage reached 9.40 euros per hour. Until October 2024, it stood at 11.65 euros gross and 9.22 euros net respectively, illustrating the concrete impact of this increase.
For a monthly perspective, the gross minimum wage now stands at 1,801.80 euros, with a net amount of 1,426.30 euros. This new level represents an increase of 34.88 euros gross and 27.61 euros net per month. As for the annual minimum wage, it rises to 21,621.60 euros gross, equivalent to 17,115.6 euros net.
When does the minimum wage increase in France?
The revaluation of the minimum wage follows a precise timetable and can also respond to particular economic contexts. Traditionally, an automatic increase takes place every January 1, in accordance with the provisions of the Labor Code. This annual revaluation is indexed to inflation, particularly that affecting the lowest 20% of households, in order to maintain their purchasing power in the face of rising prices.
There are also increases during the year. If the monthly consumer price index for the lowest-income households (excluding tobacco) shows an increase of at least 2% compared to the previous year, the minimum wage is automatically readjusted to follow this trend.
Finally, the government can choose to grant a “boost increase” after consultation with a group of experts, generally in November. This gesture, of an exceptional nature, aims to strengthen the protection of employees’ income when the economic situation requires it.
The hotel minimum wage: a specific framework adapted to the sector in 2024
In the field of hotels and restaurants, the hotel minimum wage differs from the legal minimum wage by its conventional nature and its taking into account the particularities of the sector, in particular those of the waiter profession.
Discover the job of waiter
Unlike the legal minimum wage, based on a weekly duration of 35 hours, the hotel minimum wage is based on 39 hours, with an increase of 10% for hours worked between the 36th and 39th hours. This framework, set by the collective agreement for Hotels, Cafés and Restaurants (HCR), requires employers to strictly respect the applicable minimum wage.
As of January 1, 2024, the hourly rate of the hotel minimum wage started at 11.72 euros gross for employees in level 1, step 1. This amount changes depending on the step: for example, an employee in step 3 at level I receives 11.90 euros gross, while level III, step 3, reaches 13.69 euros gross. For executives, the hourly rate can rise to 27.81 euros gross at step 3 of level V.
This minimum wage often includes benefits in kind, such as the provision of meals, valued at 4.15 euros per unit. This specific calculation adjusts to the realities of the sector, guaranteeing a minimum adapted to the working conditions and the particular requirements of the hotel and catering industry, while respecting conventional remuneration standards.
You can find all the professions in the hotel and catering sector concerned by this specific minimum wage via our job descriptions.
