SMIC MORE. D-4 before the new revaluation of the minimum wage. What amount? What increase? We tell you everything.
[Mis à jour le 27 juillet 2022 08h07] The minimum wage will experience its third increase in less than a year. In fact, every employee who is paid the minimum wage growth will benefit from the revaluation of 2.01% start of August 1, 2022. In fact, the Smic will automatically increase if the level of inflation exceeds the 2% mark (between March and June for the 20% of the poorest households). This is why the automatic increase is triggered for the month of August 2022. This rule is included in the texts of the Labor Code. Thanks to this increase, the net minimum wage from 1,302 euros to €1,329a net profit of 27 euros. Thanks to three consecutive increases in 2022, +0.9% in January, +2.65% in May and now +2.01% in August, the minimum wage will increase to 60 euros net in less than a year.
- Net minimum wage as of August 1, 2022: €1,329
- Gross minimum wage as of August 1, 2022: €1,678
- Gross hourly minimum wage as of August 1, 2022: €11.06
As a reminder, the minimum growth wage is equivalent to the legal minimum hourly wage that the employee must receive. It applies to all mature employees, regardless of the form of their remuneration (time, performance, task, piecework, commission or tip). The employer can be sentenced to a fine of €1,500 if he pays the employee a wage below the minimum wage, as well as damages. The Smic is revalued every year on 1er January, it is indexed to inflation as measured for the 20% of households with the lowest income. This revaluation of the Smic is done based on half of the gains in the purchasing power of the average hourly wages of workers and employees. Finally, if inflation increases by at least 2% compared to the index observed when the final amount of the minimum wage was established, it will automatically be increased by the same proportion. This is the case for the revaluation on August 1, 2022.
After experiencing a 0.9% increase at the start of 2022, the minimum wage has 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 relatively unprecedented revaluation of 2.2% to compensate for a price increase of more than 2% between November 2020 and August 2021. This is the first time since 2011 that one Automatic increases occur outside of January 1st. As a reminder, if an employer pays one of his employees below the legal amount of the minimum wage, the latter is liable to a fine of €1,500. He can also be ordered to pay damages to the employee.
So the minimum wage will experience a second increase on May 1, 2022. In fact, taking into account the increase in inflation (+4.5% in March for a year), the minimum wage growth has increased by 2.65% , a net increase of 34 euros per month. In other words, the net minimum wage went from 1,269 euros to 1,302.64 euros net, an increase recorded on Sunday 1 May. The amount of the minimum wage will once again be increased from August 1, 2022 to 2.01%.
Every year, the amount of the minimum wage is re-evaluated. As of January 1, 2022, it is reached 1,603 euros gross per month based on 35 hours per week. This increase is the result of the evolution of inflation and the increase in the wages of workers and employees. On May 1, 2022, a new increase after inflation began, bringing the gross minimum wage to 1645.58 euros. As an indication, here is the evolution of the amount of the minimum wage since 2010:
|year||Hourly minimum wage amount (gross)||The amount of the monthly minimum wage (gross)|
|January 2011||9 euros||€1,365|
The amount of the monthly net minimum wage is reached 1,302.64 euros, compared to 1,269 euros on January 1 and 1,231 euros in 2021. As a reminder, here is the evolution of the amount of the net minimum wage, in recent years, which amounts to:
|year||The amount of the net monthly minimum wage|
The hourly minimum wage (gross) amounts to 10.85 euros, compared to 10.57 euros on January 1, 2022 and 10.25 euros before. As a reminder, the amount of the hourly minimum wage, in recent years, is:
|year||Hourly minimum wage amount (gross)|
The amount of hourly Smic varies greatly. Remember that the amount may vary from one payslip to another, due to the amount of social security contributions deducted from the gross hourly minimum wage. In January 2022, the amount of Net hourly minimum wage estimated €8.37. For example, it is weaker between January and September 2021, measured at 8.11 euros.
The minimum wage growth is equal to the legal minimum hourly wage that the employee must receive. However, deductions apply, in some cases (apprentices and employees under 18). the hourly rate rather than €10.85 since May 2022, this is the amount paid for one hour of work. Unlike monthly Smic, which is modeled based on 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, if you benefit from the 13th month paid by your employer , it is not part of the annual minimum wage calculation. Referring to the new Smic 2022 amount valid from May 1, 2022, the net annual Smic amounts to €15,631.68 (1302.64×12). For its part, the gross annual minimum wage increased to €19,746 (1645.58×12).