The minimum wage will be revalued again this year. After gaining 1.81% on January 1, 2023, an increase of at least 2% should take place by June 1 at the latest? This is what the National Institute of Statistics and Economic Studies (INSEE) mentioned on Wednesday in its conjunctural note entitled "Growth resists, inflation too" and relayed by Capital.
We owe this new revaluation to galloping inflation. "The publication of the April price index would trigger an automatic revaluation of the SMIC. This index is published in mid-May and would therefore lead to a revaluation of the Smic on 1 June of at least 2%. This is the rule and it is of course conditional on the inflation trajectory," said Olivier Simon, head of the economic summaries division at INSEE.
An increase provided for by the Labour Code
Inflation is indeed one of the levers that leads the executive to raise the minimum wage. This measure is in addition to the annual automatic revision of the minimum wage on 1 January and increases that the government is likely to grant at its discretion. The impetus is given by the Labour Code. "When the national consumer price index reaches a level corresponding to an increase of at least 2% compared to the index observed when the minimum growth wage was established immediately earlier, the minimum growth wage is raised in the same proportion," provides article L3231-5.
For the last reference month, the consumer price index (CPI) excluding tobacco stood at 115.06, compared to 113.53 in November 2022. This difference represents a jump of 1.35%. The 2% will be reached by April. It remains to be determined when the increase in the minimum wage will occur. It could take place on June 1 or as early as May 1. We must now wait for the publication of the final inflation figures for the month of March, which will be published in mid-April.
- Economy
- Smic
- Insee
- Labour Code
- Salary