second promotion! Why and how much?

SMIC 2022. Second promotion for Smic in four months. Why ? What is the new minimum wage? We tell you everything.

[Mis à jour le 11 mai 2022 à 08h02] 1302 euro. This is the new net monthly minimum wage (previously €1,265). After traditional automatic promotion from January 1, 2022+0.9%), the minimum wage growth experienced a second increase this year, just four months later, to the tune of 2.65% in an attempt to offset the detrimental effect of inflation on the purchasing power of low-income French households. Through this revaluation, every minimum wage earner will pocket 34 euro more every month. In numbers, nothing upsets the daily life of low wages, consumer price peaks occur in 4.8% April for over a year. Gross minimum wage increases from EUR 1,603 to 1645 eurosprofit 42 euro per month. It should be remembered that such an increase is prescribed in the texts of the Labor Code when inflation exceeds 2%. Therefore, it can, like January 1, be equated with an automatic increase in the statutory minimum income in France.

Following a 0.9% increase in early 2022, the minimum wage has now been raised to €1645.58 gross per month compared to 1,589.47 euros gross per month last year. In 2021, Smic has already experienced a rather unprecedented 2.2% revaluation to offset a price increase of more than 2% between November 2020 and August 2021. For the first time since 2011, the automatic increase occurred outside of January 1st. . We remind you that if an employer pays one of its employees below the statutory minimum wage, the latter is subject to a fine of 1500 euro. He may also be required to compensate the employee for damages.

Thus, the minimum wage is subject to a second increase on May 1, 2022. Indeed, taking into account the growth of inflation (+4.5% in March for the year), the minimum wage growth increases by 2.65%, i.e. 34 euros per month. In other words, the net minimum wage increases from EUR 1,269 to EUR 1,302.64 net, which is the increase recorded on Sunday 1 May.

The minimum wage is reviewed every year. As of January 1, 2022 reached EUR 1603 gross per month with 35 hours per week. This increase is the result of both the evolution of inflation and the growth of the wages of workers and employees. On May 1, 2022, a new post-inflation increase came into effect, bringing the gross minimum wage to €1,645.58. For reference, here is the evolution of the minimum wage since 2010:

Evolution of the minimum wage since 2010
Year Hourly minimum wage (gross) Monthly minimum wage (gross)
January 2010 €8.86 €1343.77
January 2011 9 euro 1365 euros
December 2011 €9.19 €1393.82
January 2012 €9.22 EUR 1398.37
July 2012 €9.40 €1425.67
January 2013 €9.43 1430.22 euros
January 2014 €9.53 €1445.38
January 2015 €9.61 1457.52 euros
January 2016 €9.67 1466.62 euros
January 2017 €9.76 1480.27 euros
January 2018 €9.88 EUR 1498.47
January 2019 €10.03 EUR 1,521.22
January 2020 €10.15 EUR 1,539.42
January 2021 €10.25 EUR 1,554.58
January 2022 €10.57 1603 euro
May 2022 €10.85 1645 euros

Monthly net minimum wage reached 1302.64 euros compared to 1269 euros on January 1 and 1231 euros in 2021. Recall that the dynamics of the size of the net minimum wage in recent years amounted to:

The amount of the net minimum wage
Year Net monthly minimum wage
January 2016 1143 euros
January 2017 EUR 1,149.07
January 2018 1174.93 euros
January 2019 1204 euro
January 2020 1219 euros
January 2021 1231 euros
January 2022 €1269.45
May 2022 1302 euro

“The amount of the net minimum wage received by an employee depends on the company concerned and on certain contributions related to the sector of activity,” the civil service reminds on its dedicated page.

The hourly minimum wage (gross) is €10.85, compared to €10.57 on 1 January 2022 and €10.25 previously. Recall that the hourly minimum wage in recent years was:

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 hourly Smic is extremely volatile. Be aware that the amount may vary from one payroll to another due to the amount of Social Security contributions deducted from the gross minimum hourly wage. In January 2022 the amount Net hourly minimum wage was approximately €8.37. For example, in the period from January to September 2021, it was weaker and amounted to 8.11 euros.

The Growth Minimum Wage corresponds to the statutory minimum hourly wage that a worker must receive. However, deductions apply in some cases (students and employees under 18). in hourly rate It has €10.85 from 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 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 receive the 13th month paid to your employer, this is not part of the calculation of the annual minimum wage. With the new Smic 2022 effective May 1, 2022, the net annual Smic is EUR 15,631.68 (1302.64×12). For its part, the gross annual minimum wage rises to 19 746 euros (1645.58×12).

Smic in France is 10.85 euros gross per hour with a working time of 35 hours. Not all EU member states have it, but for those who do, the differences are quite significant. According to Eurostat, the lowest Smic in Europe is the Smic in Bulgaria (332 euros per month). The highest minimum wage in Europe in Luxembourg (2257 euros).

For some member countries such as Austria, Cyprus, Denmark, Finland, Italy and Sweden, a minimum wage per branch applies. The minimum wage for these countries can also 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 different cantons.

  • Geneva : 3870 euros
  • Neuchâtel : 3370 euros
  • Yura : 3370 euros
  • Ticino : 2960 euros

Apart from the cantons, Switzerland does not have a country-level minimum wage for several reasons. First, Switzerland is a federal state and each canton remains sovereign. Keep in mind that the Swiss Smic remains on average 60% higher than the French Smic.

As of January 1, 2018, the statutory minimum wage has been in effect in Germany. From now on, the minimum wage is reviewed every two years and reaches €9.82 hours from January 1, 2022. The next revaluation is scheduled to take place on 1 July 2022 and should bring German minimum wage to the height €10.45 gross hours.

In France, Smic was revalued on January 1, 2022 for price changes between August and November 2021. Employees were eligible for a minimum increase 0.9% at the beginning of the year. Thus, the monthly net minimum wage has decreased from 1231 euros in 2021 to €1269.45 in 2022. The monthly gross minimum wage increased from EUR 1,554.58 to 1603 euros as of January 1, 2022.

Smic is re-evaluated every year by 1uh January. It is indexed to inflation, measured for the bottom 20% of households. The revaluation of Smic is carried out on the basis of half of the increase in the purchasing power of the average hourly wages of workers and employees. The increase is also carried out as soon as the inflation rate exceeds 2%.

Employees engaged in professional activities in the field of hospitality and catering have a different minimum wage from the statutory minimum wage, called minimal salary. At first glance, the hotel minimum wage seems to be more profitable than the legal minimum wage, but it is worth looking at. Indeed, the minimum wage in hotels is calculated on 39 hours a week, and no more than 35 hours. Another significant difference is that when an employee is paid the minimum wage at a hotel, they automatically receive a benefit. 10% increase in overtime performed between 36 and 39 hours. This is why the net monthly minimum wage in hotels is 1430 euros. In addition to paying the classic minimum wage (1269.45 euros) due to the increase in overtime. The total monthly minimum wage at the hotel is 1804.65 euros.

The applicable collective agreement usually provides for a conditional minimum wage. If the agreed minimum is below the Smic, the employer pays a salary supplement to reach the Smic amount. If the conditional minimum is higher than Smic, the employer pays what is stipulated by the collective agreement.