Confirmed: France’s minimum wage will increase in November
A 2% rise will see the wage rise above €1,800 per month for the first time
The gross Smic is to rise above €1,800 for the first time
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The minimum wage in France will definitely increase by 2% from November 1, it has been confirmed. It means the gross amount will go above the €1,800 threshold for the first time, the prime minister has said.
A decree confirming the minimum wage (Smic, as it is referred to in France) appeared in the Journal Officiel on October 24.
“With effect from November 1, 2024, the decree raises the gross hourly minimum wage in mainland France, Guadeloupe, French Guiana, Martinique, Réunion, Saint-Barthélemy, Saint-Martin and Saint-Pierre-et-Miquelon to €11.88 (a 2% increase), i.e. €1,801.80 per month based on a legal working week of 35 hours", the text states.
Minister for Employment Astrid Panosyan-Bouvet, said in a press release: “This new decision to raise the minimum wage early is in line with the aim of supporting the purchasing power of the most modest working households.”
Read also: What is the net and gross minimum wage in France in 2024?
Smic re-evaluation
The 2% rise comes from the formula used for the annual re-evaluation of the Smic. It depends on factors such as forecasts for consumer price changes, and the hourly wage of manual and clerical workers.
The Smic automatically increases every year on January 1. However, increases can also be made during the year based on inflation levels that affect the poorest 20% of households.
The government can also choose to go beyond the automatic increase and add on a ‘boost’ beyond the minimum increase that is required, but it has not done this since 2012.
The minimum wage has been increased eight times since January 2021, including four times during the year due to rising inflation. The last increase was on January 1, 2024.
These changes mean that in some industries, the minimum wage is rising faster than other wages. When this happens, the government often calls on industry heads to make amends. The employment minister is meeting industry representatives today to ask for accelerations to the “negotiations” to this effect.
Read also: What is average salary in France? How does it compare with US or UK?
The number of employees being paid the legal minimum wage has risen sharply in France in the past few years. As of January 1, 2023, 17.3% of employees were on the Smic, up from 14.5% at the same time in 2022, and 12% in 2021.
