The minimal wage is generally elevated on January 1, however it will also be elevated throughout the yr when the buyer value index reaches a degree comparable to a rise of a minimum of 2%.
The minimal wage will see an automated enhance on October 1, on account of a 2.2% enhance within the value index serving as a foundation for potential revaluations, in accordance with the determine revealed on Wednesday by INSEE, which additionally confirms a 1.9% acceleration in inflation in August over one yr. “This rise in inflation leads to explicit from the rebound within the costs of manufactured merchandise (+ 1.1% after -1.1%)”, these of power, meals and providers, explains the Institute. nationwide statistics in a press launch.
“The buyer value index excluding tobacco for households within the first quintile of the distribution of residing requirements (…) is up by 2.2%” in comparison with November 2020, the reference month over the past revaluation of the minimal wage on January 1, provides INSEE. This growth opens the way in which to a rise within the minimal wage, since in accordance with the Labor Code, a rise of a minimum of 2% should result in a rise within the minimal wage on October 1.
The precise quantity of the minimal wage revalued on October 1 must be communicated throughout the day by the Ministry of Labor.
No “increase” since 2012
The minimal wage was elevated by 0.99% on January 1 to achieve 1,554.58 euros gross per thirty days, a rise of 15 euros. This enhance, which corresponded to an automated revaluation of the minimal wage, introduced the gross hourly quantity to 10.25 euros. Every year, some unions, such because the CGT which claims a minimal wage of 1,800 euros, ask the federal government to transcend the automated enhance, however the final “increase” dates again to July 2012 the day after the election of the socialist president François Hollande.
The governments that adopted shunned any one-off enhance, arguing that it will harm the employment of the much less expert. Intimately, the rise in costs for meals (+ 1.3%), power (+ 12.7%) and providers (+ 0.7%) continued in August. The harmonized shopper value index (ICPH), which serves as a foundation for comparability at European degree, elevated by 2.4% over one yr, after + 1.5% in July. Over one month, it rose 0.7% after + 0.1% the earlier month.