SMIC 2022: increase, Mélenchon, amount … Know everything

SMIC 2022: increase, Mélenchon, amount ... Know everything

SMIC 2022. Smic recorded two consecutive increases in 2022, with Jean-Luc Mélenchon proposing a historic increase. What is its amount? What suggestion for Nupes? We tell you everything.

[Mis à jour le 27 mai 2022 à 08h21] The minimum wage increased by 2.65% on 1 May after the first automatic increase on 1 January (+ 0.9%). Overall, therefore, the minimum growth wage increased by 5.9% in 2022. Unheard of for ten years. The amount of the net minimum wage is now € 1,302and gross at € 1,645. Jean-Luc Mélenchon and Nupes tried a shocking proposal a few days before the parliamentary elections: a reassessment of the minimum wage to € 1,500 ! An increase that would take effect if Chief Insoumis was appointed prime minister after the second round of parliamentary elections on 19 June. But is such a proposal viable? What are its advantages and disadvantages?

Such a sharp increase (+ 198 euros), rapid and significant, could create some social tension between employees who are paid the minimum wage and employees who receive a little more, but would find themselves below the minimum wage. One can then imagine that companies are playing the game by rebalancing wages and teaming up with Smic, but the economic situation may not allow it. Inflation is rising and INSEE’s latest forecasts are not reassuring. The consumer price index is expected to continue to rise, at around 5.4% in May 2022 over twelve sliding months. Wage increases could also be accompanied by increases in the prices charged by companies to offset this wage increases. Again, the purchasing power of low-income households would be affected. Conversely, raising the minimum wage to € 1,500 could help give new impetus to boosting growth through consumption. A kind of virtuous circle would take place.

After an increase of 0.9% at the beginning of 2022, the minimum wage is now raised to 1645,58 € gross per month compared to € 1,589.47 gross per month last year. In 2021, Smic already experienced a relatively unprecedented revaluation of 2.2% to compensate for the price increase of more than 2% between November 2020 and August 2021. This was the first time since 2011 when the automatic increase took place outside the 1st. We remind you that if an employer pays a wage below the statutory minimum wage to one of its employees, a fine of € 1,500. He may also be ordered to pay damages to the staff.

The minimum wage is therefore experiencing a second increase on 1 May 2022. Indeed, to take account of rising inflation (+ 4.5% in March for one year), the minimum wage increases by 2.65%, a net increase of € 34 per month . In other words, the net minimum wage is rising from € 1,269 to € 1,302.64 net, an increase on Sunday 1 May.

The minimum wage is reassessed every year. From January 1, 2022 it reached € 1,603 gross per month on the basis of 35 hours per week. This increase is the result of both inflation and wage growth. May 2022, a new increase after inflation came into force, which brought the gross minimum wage to 1645.58 euros. For orientation, we present the development of the minimum wage since 2010:

Development of the minimum wage since 2010
Year Hourly minimum wage (gross) Amount of monthly minimum wage (gross)
January 2010 € 8.86 € 1,343.77
January 2011 9 eur € 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 achieved monthly net minimum wage 1,302.64 compared to EUR 1,269 on 1 January and EUR 1,231 in 2021. As a reminder, here the development of the net minimum wage in recent years has been:

The amount of the net minimum wage
Year The amount of the 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 hourly minimum wage (gross) is EUR 10.85, compared to EUR 10.57 on 1 January 2022 and EUR 10.25 earlier. As a reminder, the amount of the hourly minimum wage has been in recent years:

Hourly minimum wage (gross)
Year Hourly minimum wage (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 €
May 2022 € 10.85

The amount of the hourly Smic is extremely variable. Keep in mind that the amount may vary from pay to pay, due to the amount of social security contributions deducted from the gross hourly minimum wage. In January 2022 it was higher Net hourly minimum wage was approx € 8.37. For example, between January and September 2021, it was weaker, at € 8.11.

The minimum growth wage corresponds to the statutory minimum hourly wage that the employee must receive. However, deductions are applicable in certain cases (apprentices and staff under the age of 18). and hour rate is from € 10.85 since May 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 amount of the annual Smic is obtained by multiplying the amount of the monthly Smic (above) by the number of months in the year, ie 12. Please note that if you benefit from the 13th month paid to your employer, this is not part of the annual minimum wage calculation. With reference to the new amount of Smic 2022 valid from 1 May 2022, it is the net annual Smic € 15,631.68 (1302.64×12). The gross annual minimum wage, on the other hand, climbs to the limit EUR 19,746 (1645.58 x 12).

Smic in France is 10.85 euros gross per hour with a working time of 35 hours. Not all Member States of the European Union have it, but for those that do, the differences are quite significant. According to Eurostat, the lowest Smic in Europe is Smic in Bulgaria (332 euros per month). Luxembourg has the highest minimum wage in Europe (€ 2,257).

Some member states, such as Austria, Cyprus, Denmark, Finland, Italy and Sweden, have a minimum branch wage. The minimum wage for these countries can also be determined by negotiations between the social partners.

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

  • Geneva : 3 870 eur
  • Neuchâtel : 3 370 eur
  • Jura : 3 370 eur
  • Ticino : 2 960 eur

Apart from the cantons, there is no minimum wage in Switzerland at country level for several reasons. The first is that Switzerland is a federal state and every canton remains sovereign. Keep in mind that the Swiss Smic remains on average 60% higher than the Smic in France.

As of January 1, 2018, there is a statutory minimum wage in Germany. The minimum wage will be redefined every two years and will be reached € 9.82 hours from January 1, 2022. Another revaluation should take place on July 1, 2022 and should bring German minimum wage in height € 10.45 rough hour.

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

It was then updated a second time from 2.65% by May 1, 2022. Enough to bring it € 1,302 Net monthly.

Smic is revalued each year to 1ehm January. It is indexed to inflation measured by 20% of the lowest income households. The revaluation of Smic is carried out on the basis of half of the increase in the purchasing power of the average hourly wage of workers and employees. The increase also occurs when the level of inflation exceeds 2%.

Employees who perform professional activities in the hotel and hospitality industry have a different minimum wage from the statutory Smic, the so-called minimum wage. At first glance, the hotel minimum wage seems more advantageous than the statutory minimum wage, but it is worth taking a closer look at it. In fact, the minimum wage in the hotel is calculated 39 hours per weekand not more than 35 hours. Another significant difference is that when employees are paid the minimum wage at the hotel, they automatically benefit from 10% increase in overtime performed between 36 and 39 o’clock. That is why the net monthly minimum wage in the hotel is € 1,430. In addition to the remuneration of the classic minimum wage (EUR 1,269.45) due to the increase in overtime. The gross monthly minimum wage of the hotel is € 1,804.65.

The current collective agreement generally stipulates a conventional minimum wage. If the agreed minimum is lower than Smic, the employer pays a supplement to the wage to reach the amount of Smic. If the contractual minimum is higher than Smic, the employer pays what is stipulated in the collective agreement.

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