The Banque de France anticipates an increase in the amount of the minimum wage of between 2% and 2.5%, i.e. a monthly salary which would exceed 1,800 euros gross.
This increase in the minimum wage is not a boost from the government but an automatic increase linked to inflation.
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Taxes, fuel, inflation… The French face the (very) high cost of living
Good news for some. The amount of the minimum wage should increase once again before the end of the year. The minimum interprofessional growth wage currently stands at 1,766.92 euros gross per month (1,398.69 euros net), after a 1.13% increase on January 1 to take inflation into account.
The Banque de France anticipates an increase in its amount of between 2% and 2.5%. That is a monthly salary of around 1805 euros gross (1429 euros net). We do not yet know exactly the exact month in which this revaluation will take place, but it could take place between August and October, according to our information.
An automatic increase linked to inflation
This revaluation is not a government boost. In France, the minimum wage is the only wage indexed to inflation. It benefits from a mechanical increase each year on January 1st that takes into account the weighted price increase for the 20% of households with the lowest incomes.
Revaluations also occur during the year as soon as inflation exceeds 2%, recalls the official website of the French administration. This is the eighth increase since January 2021. Inflation reached 2.1% in June 2024, according to a provisional estimate carried out at the end of the month by INSEE, after 2.3% in May.
More and more beneficiaries
According to a Dares study published at the end of 2023, the proportion of beneficiaries is higher among part-time employees (38.3%, compared to 12.4% for full-time employees) and within very small companies (26. 8% in those with 1 to 9 employees, compared to 15% in the others). Women are also over-represented (57.3%).
In recent years, the number of employees paid the minimum wage has increased significantly. Purchasing power is the number one concern of the French and one of the major themes of the legislative elections. Revaluation of the minimum wage, reduction of VAT or indexation of salaries to inflation, the three main competing blocs have each made proposals on the subject.
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This new increase in the amount of the minimum wage will be the ninth since January 2021 (three annual revaluations and five linked to inflation). The Banque de France anticipates a sharp slowdown in inflation in 2024. According to its projections, it should amount to 2.5% on average over one year compared to 5.7% last year.
