Thursday, 22 February 2024
Business2.5 million employees will be increased on January 1, and we already...

2.5 million employees will be increased on January 1, and we already know the amount

The most precarious workers will receive a boost in their salaries at the start of next year.

It is one of the most anticipated economic indicators at the end of each year. In France, nearly 3 million employees are paid the minimum wage every month. And all 1er January, the minimum wage is increased. The amount of the revaluation is scrutinized by the workers. The scope is not only symbolic: it allows other employees to evaluate their salary increases, those on the minimum wage seeing inflation always being compensated.

The annual increase of 1er January is the result of a formula taking into account two parameters: the evolution of inflation among the 20% of the most deprived French people and part of the evolution of the basic salary of workers and employees. Thus, it is possible to assess the future increase in the minimum wage.

The data retained by the Ministry of Labor are those announced for the month of November. Although these will only be known with precision during December, the trend that emerged in October makes it possible to establish an order of magnitude for the revaluation of the minimum wage for the start of 2024.

Economist expert on the issue of unemployment, employment policies and social dialogue, Bertrand Martinot has calculated The Internet user the probable percentage increase in the minimum wage in a few weeks. According to his estimate, the revaluation should be around 1.5%. “It’s certainly the right order of magnitude,” he explains, even if the final figure “will depend on November inflation.”

Based on this increase, employees currently paid the minimum wage would see their salary increase by €20.75 net per month, or €243.21 net per year. If this figure were to be confirmed at the end of December by the government, the minimum wage will have been increased by 5.53% in one year, after the increases on 1er January and 1er May 2023. This would correspond to the inflation recorded over one year, in accordance with INSEE forecasts at the beginning of September.

If the revaluation is only 1.3%, €18 net per month will be received in addition (€211 per year); €19.30 if the minimum wage increases by 1.4% (€227 per year) or €22 assuming an increase of 1.6% (€260 per year).

It should be noted that this mechanical revaluation of 1er January can be supplemented with a helping hand from the government. The latter can in fact decide to increase the minimum wage more than expected. However, this has never happened since Emmanuel Macron was President. The last boost dates back to 2012 when François Hollande, just installed at the Elysée, decided to increase the minimum wage by 0.6% on 1er July, in addition to the automatic 1.4% linked to inflation.

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