SMIC 2022. As announced by the Department of Labor, the growth minimum wage will increase again this year! What is the minimum wage? when will it increase We tell you everything.
[Mis à jour le 18 avril 2022 à 07h49] That’s good news for your French wallet! The minimum wage will increase a second time in 2022 after the automatic increase on January 1st. After the official announcement of the inflation rate in March 2022 by INSEE (4.5% over one year), the Department of Labor confirmed the increase in the minimum growth wage of 2.65%. A perceived appreciation was just offsetting the damaging effects of rising consumer prices on the most humble households paid at minimum wage. Good to know that such an increase is included in the Labor Code when inflation rises above 2%. So here is a second “automatic” re-evaluation in 2022.
But how much will you earn then? 34 euros net! The monthly minimum net growth wage will increase from 1,269 euros €1,302. The switch is slated to happen shortly, on May 1, 2022 to be precise. For comparison, the Smic was up 2.2% in 2021, then up 0.9% on January 1, 2022. For information, the new amount of the monthly gross minimum wage will be given €1,645An increase of 42 euros.
After the minimum wage increased by 0.9% in early 2022, it will now be increased to €1,603.12 gross per month compared to EUR 1,589.47 gross per month in the previous year. In 2020, the Smic saw a fairly 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 an automatic increase occurred outside of January 1st. As a reminder, if an employer pays one of its employees less than the statutory minimum wage, they face a fine of €1,500. He can also be sentenced to pay compensation to the employee.
The Smic will experience a second upgrade in 2022, from May 1st. To take into account the increase in inflation (+4.5% in March over a year), the minimum growth wage is raised from 2.4% to 2.6%, ie a net increase from 30 to 35 euros per month. This means that the net minimum wage will drop from 1,269 euros to 1,299 euros net on May 1, 2022.
The minimum wage is reset every year. Il reaches 1,603 euros gross per month based on 35 hours per week. This increase is due both to the development of inflation and to the increase in wages for workers and employees. As an indication, here is the development of the minimum wage since 2010:
|Year||Hourly minimum wage (gross)||Amount of the monthly minimum wage (gross)|
|January 2011||9 euros||€1,365|
The monthly net minimum wage reached EUR 1,269 compared to EUR 1,231 previously. As a reminder, here is the development of the level of the net minimum wage in recent years:
|Year||Amount of the monthly net minimum wage|
“The amount of net minimum wage that the worker receives depends on the company concerned and on certain contributions related to the field of activity,” the public service reminds on its dedicated page.
The amount of the hourly Smic (gross) is 10.57 euros, compared to 10.25 euros previously. As a reminder, the minimum hourly wage in recent years has been:
|Year||Hourly minimum wage (gross)|
The level of the hourly smic is extremely variable. Note that the amount may vary from paycheck to paycheck due to the amount of Social Security contributions deducted from the gross hourly minimum wage. In January 2022, the amount of Minimum wage per hour net was about €8.37. For example, it was weaker between January and September 2021, measured at EUR 8.11.
The minimum growth wage corresponds to the statutory minimum hourly wage that the worker must receive. However, deductions are possible in certain cases (apprentices and employees under the age of 18). that hourly rate is of €10.57 since January 2022, this is the amount paid for one hour worked. As opposed to the monthly smic which is modeled on a 35 hour per week basis.
The annual Smic amount is calculated by multiplying the monthly Smic amount (above) by the number of months in the year, ie 12. Please note if you are benefiting from a 13th month paid to your employer this is this is not part of the annual minimum wage calculation. In relation to the new level of the Smic 2022, the annual net Smic is €15,233.40 (1269.45×12). The gross annual minimum wage, for its part, is increasing €19,236 (1603×12).
The Smic in France is 10.57 euros gross per hour for a working time of 35 hours. Not all European Union member states have one, but for those that do, the differences are quite large. According to Eurostat data, the lowest smic in Europe is the smic in 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 there is a minimum wage per branch. The minimum wage can also be set for these countries through negotiations between the social partners.
The case of Switzerland is a bit special as only 5 cantons have a minimum wage. Geneva, Neuchâtel, Jura, Ticino and Basel-Stadt. It is not the same between the different cantons.
- Geneva : 3,870 euros
- Neuchâtel : 3,370 euros
- law : 3,370 euros
- Ticino : 2,960 euros
Apart from that of the cantons, there is no minimum wage in Switzerland at the state level for a number of reasons. First, Switzerland is a federal state and each canton remains sovereign. Remember that the Swiss smic is on average 60% higher than the smic in France.
There has been a statutory minimum wage in Germany since January 1, 2018. A minimum wage that will henceforth be redefined and achieved every two years €9.82 the hour since January 1, 2022. A next re-evaluation is scheduled to take place on July 1, 2022 and bring that German minimum wage up to the amount of €10.45 gross of the hour.
In France, the Smic was repriced on January 1, 2022 to reflect 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 fell from 1,231 euros in 2021 €1,269.45 in 2022. The monthly gross minimum wage increased from 1,554.58 euros 1,603 euros on January 1, 2022.
The Smic is re-evaluated on the 1st of each yearah January. It is indexed to inflation, which is measured for the 20% of households with the lowest incomes. The Smic is re-evaluated on the basis of half the gain in purchasing power of the average hourly wage of blue- and white-collar workers.
Employees who pursue a professional activity in the hotel and catering industry have a minimum wage that differs from the statutory minimum wage, called Smic 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. However, the calculation is based on the hotel minimum wage 39 hours per week, and no more than 35 hours. Another key difference: if an employee earns the hotel minimum wage, they automatically benefit from one 10% more overtime performed between the 36th and 39th hour. Therefore, the monthly net hotel minimum wage is €1,430. In addition, the payment of the classic minimum wage (1,269.45 euros) through the increase in overtime. The gross monthly hotel minimum wage is €1,804.65.
The applicable collective agreement usually provides for a standard minimum wage. If the agreed minimum is below the Smic, the employer pays a wage supplement up to the amount of the Smic. If the collectively agreed minimum is above the Smic, the employer pays what the collective agreement stipulates.