According to the Ministry of Labor, the minimum wage should increase 2.4% and 2.6% as of May 1, 2022. In fact, we have been witnessing high inflation for several months. Therefore, to remedy this and help the most vulnerable households, the State has decided to increase the amount of the minimum wage.
According to our AFP colleagues, the State should indicate its exact amount as of April 15. In fact, it is at this time that INSEE will publish its final estimate of the price increase in March..
In January we had already noted an increase in the minimum wage of 0.9%. This increase was nothing compared to the exceptional increase in October 2021, up to 2.2%! It should be noted that this increase was already explained by inflation. If today the recipients of the Smic receive 1,269 euros net per month, it should increase even more on May 1 until reaching a range between 1,299 and 1,304 euros on May 1. This represents an increase of 30 to 35 euros per month.
What does the Labor Code say?
But if the State has decided to review the amount of the Smic, it is because the law obliges it to do so. Indeed, the Labor Code establishes that “when the national consumer price index reaches a level corresponding to an increase of at least 2%”the minimum wage is raised “in the same proportion” next month. However, INSEE has published its latest figures on inflation last Thursday. And we can notice that the price increase exceeds this threshold in March compared to November 2021. The month of November was, in fact, the reference month for the last revaluation that took place in January.
In addition, Julien Pouget, head of the INSEE economic situation department, recalls that the price index for low-income households is increasing faster than the general index ” given the weight of energy and food in its composition« . The most disadvantaged households will thus see the Smic revalued, but not only!
Because it involves several social benefits. On average, this corresponds to an increase of 1.8%, which is in line with inflation, according to the Ministry of Solidarity and health. This is how the RSA (Active Solidarity Income) will be treated. Remember that the State pays this aid to anyone over 25 years of age, without resources. This ensures a minimum level of income. The State thus revalues the RSA to 575.52 euros per month for a single person without children.
Smic: At the origin of this revaluation: strong inflation
As for the activity bonus, it will increase by 1.8%. This aid aims to encourage the return to work of the most precarious workers. Thus, the lump sum for a single person will be 563.68 euros per month. Finally, the subsidy for adults with disabilities (AAH), disability pensions and all family benefits will also experience an increase of 1.8%.
Another long-awaited boost French : the “fuel discount”. Faced with rising oil prices, the government has promised to deliver at least 15 cents at the pump. And this good news will take effect on Friday, April 1. But beware, this measure should only last four months. For the State, this has a cost. And that amounts to no less than three billion euros of public finances. In mainland France, excluding Corsica, this discount will reach up to 18 cents per litre.
France is not the only country that has a salary minimum like the minimum wage. And it is in Luxembourg where we find the highest European minimum wage: it exceeds 2,200 euros per month. The lowest minimum wage, on the other hand, is in Bulgaria, and barely reaches 330 euros per month.