Minimum wage: we know the final amount! – Linternaute.com

SMIC 2021. The Ministry of Labor has published the final minimum wage figure on October 1, 2021. The minimum wage will be subject to an automatic adjustment due to changes in inflation.

[Mis à jour le 15 septembre 2021 à 20h08] It’s official: the minimum wage will increase. In a press release published this Wednesday evening, the Ministry of Labor announced the automatic revaluation of the minimum wage, following the publication of the final inflation figures. The latter will reach 1,589.47 euros, an increase of 34.89 euros, according to a communicated of the Ministry of Labor, published after a meeting with the group of experts on the minimum wage. The gross hourly minimum wage will thus drop from 10.25 to 10.48 euros next month. “Despite an unprecedented crisis, the policy pursued by the Government has made it possible to avoid any drop in the purchasing power of households and the average salary in 2020 and 2021”, argues the ministry. “This protection of purchasing power comes in particular from emergency support measures, such as partial activity which compensated 100% of the net salary of employees on the minimum wage and close to the minimum wage”.

“We have been very vigilant since the start of the five-year term to ensure that the purchasing power of workers on the minimum wage or close to the minimum wage is protected. Between 2017 and 2021, the monthly minimum wage increased more than inflation, increasing by cumulative amounts of 55 euros, an increase on top of the strong purchasing power gains generated by the measures taken by the Government since 2017, “said Elisabeth Borne in the same press release.

INSEE published the final consumer price figures for the month of August 2021, this Wednesday morning on his website. “In August 2021, the consumer price index (CPI) rose 0.6% over one month, after + 0.1% in July,” announces the statistical institute. “Adjusted for seasonal variations, consumer prices are up 0.4%, as in July (…). Over one year, consumer prices increased by 1.9%, after + 1.2% in July“.

The rise in inflation is partly attributed to the rebound in the prices of manufactured products, energy, food and services, details INSEE in its press release. “The consumer price index excluding tobacco for households in the first quintile of the distribution of living standards (…) is up by 2.2%” compared to November 2020, the reference month during the last increase in minimum wage January 1st last, completes INSEE.

The last increase in the minimum wage, due to inflation, of 2.1% took place in 2011. On January 1, 2021, it had been increased by 0.99%, or 15 euros additional gross to 10.25 euros per hourly gross minimum wage. Some unions and political parties regularly demand a higher revaluation. The CGT defends a minimum wage of 1,800 euros. For now, the government is ruling out any additional help. “I do not think there is a risk of systemic inflation,” Bruno Le Maire said at the microphone of LCI on Monday. “Today we have cyclical inflation which is linked to a stronger than expected economic recovery”.

The unions continue to demand a real boost. On Twitter, Yves Veyrier (FO) claims “an immediate plan to upgrade all jobs confined to low wages, part-time and too often on precarious contracts”.

Same story for the CFTC.

The Smic is the legal minimum wage that an employee must receive in France. An employee cannot therefore be remunerated below this threshold. There are, however, reductions in certain cases, such as employees under the age of 18 and apprentices. If the employer does not respect the legal minimum wage, he is liable to a fine of 1,500 euros and may be ordered to pay damages to his employee. Each year, the minimum wage is automatically adjusted on January 1.

What amount for the 2021 net minimum wage?

The amount of the monthly net minimum wage in 2021 reached 1,231 euros, against 1,219 euros in 2020. As a reminder, the amount of the net minimum wage in recent years has amounted to:

Net minimum wage amount

Year	Net monthly minimum wage amount
january 2016	1,143 euros
january 2017	€ 1,149.07
january 2018	1,174.93 euros
january 2019	1,204 euros
January 2020	€ 1,219
January 2021	€ 1,231

“The amount of the net minimum wage received by the employee depends on the company concerned and certain contributions related to the sector of activity”, recalls the public service on its dedicated page.

Each year, the amount of the minimum wage is reassessed. In 2021, it reached 1,554.58 euros gross per month on the basis of 35 weekly hours, against 1,539.42 euros in 2020. This increase is the result of both the trend in inflation and the rise in the wages of workers and employees. As an indication, here is the evolution of the amount of the minimum wage since 2010:

Evolution of the minimum wage since 2010

Year	Hourly minimum wage (gross)	Monthly minimum wage amount (gross)
january 2010	8.86 euros	€ 1,343.77
january 2011	9 euros	1,365 euros
december 2011	9.19 euros	€ 1,393.82
january 2012	9.22 euros	€ 1,398.37
July 2012	9.40 euros	1,425.67 euros
January 2013	9.43 euros	1,430.22 euros
January 2014	9.53 euros	1,445.38 euros
january 2015	9.61 euros	1,457.52 euros
january 2016	9.67 euros	1,466.62 euros
january 2017	9.76 euros	1,480.27 euros
january 2018	9.88 euros	1,498.47 euros
january 2019	10.03 euros	1,521.22 euros
january 2020	10.15 euros	1,539.42 euros
January 2021	10.25 euros	1,554.58 euros

The amount of the hourly minimum wage (gross) in 2021 amounts to 10.25 in 2020, against 10.15 euros in 2020. As a reminder, the amount of the hourly minimum wage in recent years has been:

Hourly minimum wage (gross)

Year	Hourly minimum wage (gross)
january 2016	9.67 euros
january 2017	9.76 euros
january 2018	9.88 euros
january 2019	10.03 euros
January 2020	10.15 euros
January 2021	10.25 euros

The annual minimum wage for 2021 reached 18,654 euros gross in 2021. The net annual amount, for its part, stands at 14,772 euros this year.