In France, the number of people paid the minimum wage has never been higher than in 2023

In just two years, between 2021 and 2023, the number of people earning minimum wage has increased by 50%. Which feeds a feeling of social unease, to which the government seeks to respond.

Emmanuel Macron faces an unprecedented situation, in the private sector, excluding agriculture, nearly one in five workers is paid the minimum inter-professional growth wage (smic). Between January 2021 and January 2023, according to the latest figures from Dares, which depends on the Ministry of Labor, a million more people receive the minimum wage.

Which makes a total of more than 3.1 million French people who earn 1,398.69 euros net per month. These are employees, workers, one in five workers in services, 8% of workers in industry. But there are also small bosses, craftsmen, according to a recent study by the Confederation of Small and Medium Enterprises (CPME), one boss in five earns less than a minimum wage per month.

The minimum wage is automatically indexed to inflation, which is not the case for other remuneration which depends on negotiation between employees and bosses. And as the minimum wage has been increased eight times in two years, it has gradually caught up with many salaries just above it, which have not progressed as much. It’s mechanical, it increases the workforce.

There is also an increase in the number of people paid the minimum wage because of the types of jobs created in recent years. New positions are often in low-skilled professions, such as logistics, cleaning, personal assistance and therefore paid at minimum wage.

Revaluing work

The problem is that it creates what we call low-wage “traps”. Because today, an employer has more interest in hiring someone at the minimum wage than a worker who would be just above, because they benefit from reductions in contributions, a minimum wage is therefore less expensive. And because of these incentive systems, the problem is also that employees remain paid the minimum wage for a long time. They have the feeling of not being able to progress up the ladder of qualifications and remuneration, as if they were trapped in a trap.

And the government is looking for a solution because it feeds the feeling of being downgraded and angry. Especially since with inflation, more and more workers are not getting by. Last October, during the social conference, Élisabeth Borne launched a reflection on low wages with the creation of a high remuneration council.

The government is looking to see how to increase the value of work, that is to say, review the aid measures which encourage work or which pay it better. With the aim being the activity bonus, but also a review of contribution reductions. But it raises eyebrows among the bosses and then, the fear is that it will slow down hiring.