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Bruno Le Maire: “The minimum wage could be increased on October 1st” – BFM Business

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Invited on BFMTV, the Minister of the Economy excludes a boost to the minimum wage so as not to harm employment but ensures that it could be automatically revalued with inflation.

Will the acceleration of inflation reduce purchasing power? While the price increase reached 1.9% in August year-on-year, many French people have seen certain tariffs – in particular those for energy – increase in this re-entry.

A few months before the presidential election, will the government tire of trying to increase the minimum wage, the famous boost? Invited on BFMTV-RMC, the Minister of the Economy is not in favor.

“I do not think that [le coup de pouce] either the right solution, assures Bruno Le Maire. We are always tempted to do it, but that means we will pay for it on the job. My priority is employment, employment, employment. Giving a boost to the minimum wage is giving a penknife to the recovery of employment. “

While the unemployment returned to pre-crisis levels in the second quarter, the Minister of the Economy fears to break the dynamic of recovery by placing too heavy a burden on companies. However, he says he is aware of the difficulties of purchasing power and assures that the minimum wage could in spite of being revalued in the coming weeks.

“Our minimum wage has a peculiarity, when prices increase – especially for those who have the constrained expenses that weigh the most in their budget – it increases automatically, reminds Bruno Le Maire. With regard to inflation, we will see the figures at 15 September, we can envisage that there will be an automatic adjustment of the minimum wage on October 1, it is planned. “

As of October 1, there could be an automatic revaluation.

Inflation must exceed 2%

Since 2013, the minimum wage has been revalued every January 1, taking into account the evolution of the monthly consumer price index of the 20% of the most modest employees, recalls INSEE. But it can also be done during the year during the year when this consumer price index reaches a level corresponding to an increase of at least 2% compared to the index observed during the establishment. of the immediately preceding minimum wage.

Inflation is currently 1.9%. If it continues to increase, the minimum wage could then be increased during the year. As a reminder, the gross hourly minimum wage is currently 10.25 euros since January 1, 2021 for a monthly net amount of 1,231 euros (1,219 euros in 2020).

However, the Minister of the Economy believes that inflation is only cyclical and should not last over time.

“Inflation is the result of the strength of the economic recovery, we don’t think it’s structural inflation,” he said.

Concerning the purchasing power of all employees, the Minister of the Economy renewed his appeal to businesses who can so that they revalue wages. Recalling that the incentive measures put in place by the government for four years.

“I am not decreeing an increase in salaries, but the State has taken its full share, the State has made the activity bonus (plus 100 euros more per month), the tax exemption for overtime, the reduction in social contributions, profit-sharing, profit-sharing, the elimination of the tax on profit-sharing, lists Bruno Le Maire, who ensures that a new measure is prepared so that more French people benefit from profit-sharing agreements.

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