Michel Barnier announces a 2% increase in the minimum wage “from November 1”

The mechanical increase in the minimum wage was scheduled for January 1. It will take place two months earlier. The minimum wage will be increased to around 1,426 euros net, compared to 1,398.70 euros currently.

“We will increase the minimum wage by 2% from November 1, in anticipation of the date of January 1”announced Tuesday, October 1, the Prime Minister, Michel Barnier, during his general policy declaration to the National Assembly. The monthly net minimum salary will thus be increased to approximately 1,426 euros net, compared to 1,398.70 euros currently.

The minimum wage is the only salary indexed to inflation. It benefits each year from a mechanical increase on January 1st and revaluations also occur during the year as soon as inflation exceeds 2%. Michel Barnier therefore decided that the automatic increase, scheduled for January 1, would take place two months earlier.

The minimum wage has increased eight times since January 2021, including four times during the year due to inflation. Its last revaluation dates back to January 1st. As the minimum wage increases faster than the rest of wages, certain sector minimums are caught up. “There remain professional sectors in our country in which the minimum wages are lower than the minimum wage, this is not acceptable and this will be the subject of rapid negotiations”assured the head of government, who cited among his priority projects that of “standard of living of the French”.

“In addition, it has now been shown that our cost reduction system slows down the rise in wages above the minimum wage: we will see it again”continued Michel Barnier. Exemptions, maximum at the minimum wage level, introduced to support employment, are today accused by certain economists of slowing down wage progression by creating “low wage traps”.

The unions, who met the Prime Minister last week, include wage increases among their demands. Professional organizations demonstrated on Tuesday so that the government “meets social demands”particularly on these salary issues. On the left, anticipation of the increase in the minimum wage is considered insufficient. The deputy and national coordinator of La France insoumise Manuel Bompard castigated on “50 euro obol” to French people who have “voted for purchasing power”. “You never talk about raising wages, and [vous le faites] so little, in truth, [pour] the minimum wage”for his part regretted the leader of the socialist deputies, Boris Vallaud.