it’s rising (again) this year! When and how much?

SMIC 2022: it increases (again) this year!  When and how much?

SMIC 2022. As announced by the Ministry of Labor, the growth minimum wage will increase again this year! What is the amount of the minimum wage? When will it increase? We tell you everything.

[Mis à jour le 18 avril 2022 à 07h49] This is good news for your French wallet! The minimum wage will increase for the second time in 2022, after the automatic increase in the January 1. After the officialization of the inflation rate in March 2022 by INSEE (4.5% in one year), the Ministry of Labor confirmed the increase in the minimum growth wage of 2.65%. A supposed revaluation precisely offset the harmful effects of the rise in consumer prices for the most modest households, paid at the minimum wage. It is good to know that said increase is included in the Labor Code, in case of an increase in inflation above 2%. So here is a second “automatic” revaluation in 2022.

But then how much will you earn? 34 euros net! The minimum monthly salary net of growth will go from 1,269 euros to €1,302. The change is scheduled for soon, more precisely on May 1, 2022. For comparison, the Smic had increased by 2.2% in 2021 and then by 0.9% on January 1, 2022. For information, the new amount of the gross monthly minimum wage will be €1,645an increase of 42 euros.

After experiencing a 0.9% increase in early 2022, the minimum wage now rises to €1,603.12 monthly gross, compared to 1,589.47 euros monthly gross last year. In 2020, the Smic experienced a rather unprecedented 2.2% appreciation to offset the more than 2% price increase between November 2020 and August 2021. It was the first time since 2011 that there had been an automatic increase outside of 1 from January. As a reminder, if an employer pays one of his employees below the legal amount of the minimum wage, the latter is subject to a fine of €1,500. You may also be ordered to pay damages to the employee

The Smic will experience a second revaluation in 2022, starting on May 1. Indeed, to take into account the rise in inflation (+4.5% in March in one year), the minimum growth wage will rise from 2.4% to 2.6%, that is, a net rise of 30 to 35 euros per month. In other words, the minimum net salary will drop from 1,269 euros to 1,299 euros net on May 1, 2022.

Every year the amount of the minimum wage is reevaluated. Il reaches 1,603 euros gross per month based on 35 hours per week. This increase is the result of both the evolution of inflation and the increase in wages of workers and employees. As an indication, here is the evolution of the amount of the minimum wage since 2010:

Evolution of the minimum wage since 2010
Year Hourly minimum wage amount (gross) Monthly minimum wage amount (gross)
January 2010 €8.86 €1,343.77
January 2011 9 euros €1,365
december 2011 €9.19 €1,393.82
January 2012 €9.22 €1,398.37
July 2012 €9.40 €1,425.67
January 2013 €9.43 €1,430.22
January 2014 €9.53 €1,445.38
January 2015 €9.61 €1,457.52
January 2016 €9.67 €1,466.62
January 2017 €9.76 €1,480.27
January 2018 €9.88 €1,498.47
January 2019 €10.03 €1,521.22
January 2020 €10.15 €1,539.42
January 2021 €10.25 €1,554.58
January 2022 €10.57 €1,603
May 2022 €10.85 €1,645

The amount of the net monthly minimum wage reaches 1,269 euros, compared to the previous 1,231 euros. As a reminder, below is the evolution of the amount of the net minimum wage, in recent years, it amounted to:

Net minimum wage amount
Year Amount of net monthly minimum wage
January 2016 €1,143
January 2017 €1,149.07
January 2018 €1,174.93
January 2019 €1,204
January 2020 €1,219
January 2021 €1,231
January 2022 €1,269.45
May 2022 €1,302

“The amount of the net minimum wage received by the employee depends on the company in question and on certain contributions linked to the sector of activity,” recalls the public service on its dedicated page.

The amount of the hourly Smic (gross) amounts to 10.57, compared to the previous 10.25 euros. As a reminder, the amount of the minimum wage per hour, in recent years, was:

Hourly minimum wage amount (gross)
Year Hourly minimum wage amount (gross)
January 2016 €9.67
January 2017 €9.76
January 2018 €9.88
January 2019 €10.03
January 2020 €10.15
January 2021 €10.25
January 2022 €10.57

The amount of the hourly Smic is extremely variable. Please note that the amount may vary from one payroll to another, due to the amount of social security contributions that are deducted from the hourly gross minimum wage. In January 2022, the amount of the net hourly minimum wage it was approximately €8.37. For example, it was weakest between January and September 2021, measured at 8.11 euros.

The minimum growth wage corresponds to the legal minimum wage per hour that the worker must receive. However, deductions apply in certain cases (trainees and employees under 18 years of age). the hourly rate It is €10.57 as of January 2022, this is the amount paid for one hour of work. Unlike the monthly Smic, which is modeled on the basis of 35 hours per week.

The annual Smic amount is obtained by multiplying the monthly Smic amount (above) by the number of months in the year, i.e. 12. Please note that if you benefit from a 13th month paid to your employer, this is not part of the calculation of the annual minimum wage. In reference to the new amount of Smic 2022, the annual net Smic amounts to €15,233.40 (1269.45×12). For its part, the annual gross minimum wage rises to €19,236 (1603×12).

The Smic in France costs 10.57 euros gross per hour for a 35-hour working day. Not all member states of the European Union have one, but for those that do, the differences are quite significant. According to Eurostat data, the lowest Smic in Europe is the Smic of Bulgaria (332 euros per month). The highest minimum wage in Europe is in Luxembourg (2,257 euros).

For some member countries such as Austria, Cyprus, Denmark, Finland, Italy and Sweden, a minimum wage per branch applies. The minimum wage can also, for these countries, be determined through negotiations between the social partners.

The case of Switzerland is a bit special because only 5 cantons have a minimum wage. Geneva, Neuchâtel, Jura, Ticino and Basel-City. It is not the same between the different cantons.

  • Geneva : 3,870 euros
  • Neuchatel : 3,370 euros
  • swear : 3,370 euros
  • Ticino : 2,960 euros

Beyond that of the cantons, there is no minimum wage in Switzerland at the country level for various reasons. The first is that Switzerland is a federal state and each canton remains sovereign. Note that the Swiss Smic is still, on average, 60% higher than the Smic in France.

Since January 1, 2018, there is a statutory minimum amount of wages in Germany. A minimum wage redefined every two years, thereafter, and reached €9.82 of the hour from January 1, 2022. A next revaluation should take place on July 1, 2022 and should bring the german minimum wage at the height of €10.45 gross of the hour

In France, the Smic was revalued on January 1, 2022 to take into account price changes between August and November 2021. Employees were entitled to a minimum increase of 0.9% at the beginning of the year. Thus, the net monthly minimum wage fell from 1,231 euros in 2021 to €1,269.45 in 2022. The monthly gross minimum wage goes from 1,554.58 euros to 1,603 euros on January 1, 2022.

The Smic is revalued every year on 1it is January. It is indexed to inflation measured for the 20% of households with the lowest incomes. The revaluation of the Smic is made on the basis of half of the gain in purchasing power of the average hourly wage of workers and employees.

Employed workers who carry out a professional activity in the hospitality sector have a minimum wage that is different from the legal Smic, called minimum salary. At first glance, the hotel minimum wage seems more advantageous than the legal minimum wage, but it is worth taking a closer look. In fact, the hotel minimum wage is calculated on 39 hours per week, and no more than 35h. Another significant difference, when an employee is paid the hotel’s minimum wage, they automatically benefit from a 10% increase in overtime made between hours 36 and 39. That is why the hotel net monthly minimum wage amounts to €1,430. Beyond the payment of the classic minimum wage (1,269.45 euros) for the increase in overtime. The hotel gross monthly minimum wage amounts to €1,804.65.

The applicable collective agreement generally provides for a conventional minimum wage. If the agreed minimum is less than the Smic, the employer pays a salary supplement up to the amount of the Smic. If the conventional minimum is higher than the Smic, the employer pays what is established in the collective agreement.

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