[France] Details of the October 1st minimum wage rise

From October 1, the minimum wage in France (known as the SMIC) will go up by 2.2 per cent, according to Work Minister Elisabeth Borne, The Connexion reports. 

In a statement on September 15, Ms Borne said, “SMIC will rise to €1,589.47 gross, equivalent to an increase of €34.98” (per month for full-time jobs working 35 hours per week).

The SMIC will rise from €10.25 to €10.48 per hour. Ms Borne said this was “the most significant increase since 2012”.

An estimated 2.5 million workers in France will be impacted by the change, the equivalent of 13 per cent of salaried employees.   

The announcement follows national economics body INSEE’s report which said that inflation in France has also risen by 2.2 per cent in the same period. The government is legally obligated to increase the minimum wage when inflation rises over 2 per cent.

An annual evaluation of the rate will still take place in January 2022, as it does every year, even though the level of SMIC will rise in October.

How France’s SMIC compares to minimum wages across the EU

The increase to €1,589.47 gross consolidates France among some of the highest minimum wage payers of the European Union member states.

France is now the fifth-highest payer in Europe, at €1,589.47, just ahead of Germany (€1,584).

Using data from INSEE inequality watchdog l'Observatoire des inégalités found that average salaries in the private sector in France are €1,940 net per month.

Those paid more than €4,000 (net) per month are in the top 10 per cent of earners. The top 1 per cent are paid more than €9,200 per month.

The watchdog said that salaries may be higher in the public sector as such jobs often demand higher levels of education. 

INSEE itself, however, came out with considerably different figures, estimating that the average private-sector salary  in 2019 was €2,424 net per month.

L'Observatoire des inégalités has a salary comparison tool on its website where you may calculate how your salary compares to the average in France.

European Commission figures  show that the highest gross rates can be found in Luxembourg at €2,202 per month, followed by Ireland (€1,706.90), the Netherlands (€1,608) and Belgium (€1,652.72). 

The lowest rates in the EU are found in Albania (€245 per month), Serbia (€366) and Bulgaria (€332), figures from Eurostat reportedly show.

Eurostat has found that the UK also has a relatively high rate, at the equivalent of €1,598 per month. In comparison, the US currently pays the equivalent of €1,024 per month. 

Switzerland technically does not have a set minimum wage, but many companies follow voluntary agreements on minimum payments. They range from CHF 2,200 to 4,200 (€2,022-€3,860) per month for unskilled workers; and 2,800 to 5,300 (€2,574-€4,872) for skilled work.

The body estimates that some 1.7 million workers in France are paid less than the minimum hourly wage in practice. These include apprentices, interns, some disabled workers, home help staff, seasonal holiday centre workers, nursery school assistants and prison workers. Such workers are often excluded from minimum wage payments because they are not considered ‘real workers’ (in the case of apprentices and interns). Their hours can also be difficult to track (seasonal workers), the body said, and pay can fluctuate (in the case of nursery school assistants and home help staff) depending on the number of children or adults in their care.

Source: The Connexion

(Links via original reporting)

From October 1, the minimum wage in France (known as the SMIC) will go up by 2.2 per cent, according to Work Minister Elisabeth Borne, The Connexion reports. 

In a statement on September 15, Ms Borne said, “SMIC will rise to €1,589.47 gross, equivalent to an increase of €34.98” (per month for full-time jobs working 35 hours per week).

The SMIC will rise from €10.25 to €10.48 per hour. Ms Borne said this was “the most significant increase since 2012”.

An estimated 2.5 million workers in France will be impacted by the change, the equivalent of 13 per cent of salaried employees.   

The announcement follows national economics body INSEE’s report which said that inflation in France has also risen by 2.2 per cent in the same period. The government is legally obligated to increase the minimum wage when inflation rises over 2 per cent.

An annual evaluation of the rate will still take place in January 2022, as it does every year, even though the level of SMIC will rise in October.

How France’s SMIC compares to minimum wages across the EU

The increase to €1,589.47 gross consolidates France among some of the highest minimum wage payers of the European Union member states.

France is now the fifth-highest payer in Europe, at €1,589.47, just ahead of Germany (€1,584).

Using data from INSEE inequality watchdog l'Observatoire des inégalités found that average salaries in the private sector in France are €1,940 net per month.

Those paid more than €4,000 (net) per month are in the top 10 per cent of earners. The top 1 per cent are paid more than €9,200 per month.

The watchdog said that salaries may be higher in the public sector as such jobs often demand higher levels of education. 

INSEE itself, however, came out with considerably different figures, estimating that the average private-sector salary  in 2019 was €2,424 net per month.

L'Observatoire des inégalités has a salary comparison tool on its website where you may calculate how your salary compares to the average in France.

European Commission figures  show that the highest gross rates can be found in Luxembourg at €2,202 per month, followed by Ireland (€1,706.90), the Netherlands (€1,608) and Belgium (€1,652.72). 

The lowest rates in the EU are found in Albania (€245 per month), Serbia (€366) and Bulgaria (€332), figures from Eurostat reportedly show.

Eurostat has found that the UK also has a relatively high rate, at the equivalent of €1,598 per month. In comparison, the US currently pays the equivalent of €1,024 per month. 

Switzerland technically does not have a set minimum wage, but many companies follow voluntary agreements on minimum payments. They range from CHF 2,200 to 4,200 (€2,022-€3,860) per month for unskilled workers; and 2,800 to 5,300 (€2,574-€4,872) for skilled work.

The body estimates that some 1.7 million workers in France are paid less than the minimum hourly wage in practice. These include apprentices, interns, some disabled workers, home help staff, seasonal holiday centre workers, nursery school assistants and prison workers. Such workers are often excluded from minimum wage payments because they are not considered ‘real workers’ (in the case of apprentices and interns). Their hours can also be difficult to track (seasonal workers), the body said, and pay can fluctuate (in the case of nursery school assistants and home help staff) depending on the number of children or adults in their care.

Source: The Connexion

(Links via original reporting)