What does an anticipated 2% increase in the minimum wage change?

Michel Barnier announces a 2% increase in the minimum wage from November 1st. An anticipation of the legal revaluation normally scheduled for January.

On November 1, the monthly minimum wage will reach 1,426 euros net compared to a little more than 1,398 currently, or 28 euros more, an announcement made Tuesday, October 1 by Michel Barnier during his general policy declaration. The minimum wage is the only salary indexed to inflation and benefits from a mechanical increase each year.

When this inflation soars, there can be revaluations during the year, this is what we have observed in recent years. Since 2021, it has increased eight times, but as inflation slows, the last revaluation was on January 1, 2024.

Nothing required the government to increase the minimum wage before January 1st. With an increase of 2%, Michel Barnier is showing himself to be a little more generous than strictly foreseen by law, because inflation on January 1st promises to be a little below 2%. The fact remains that companies will have to increase the minimum wage from November 1, this will be additional expenses for them. The same goes for the State or local authorities who pay their agents, even though Michel Barnier insists on the need to tighten our belts.

This little boost was eagerly awaited by the 17% of minimum wage employees. The gesture is welcomed by the unions who do not want to stop there: the CGT is asking, in addition to the anticipated increase in November, an increase in January. For the CFDT, this autumn increase cannot be the alpha and omega of a real wage policy.

Each time the minimum wage is increased, professional sectors are forced to renegotiate their conventional scales so that no index remains below it. Which means updating them so that the entire salary scale progresses. Unions have been asking for this for a long time, but employer representatives are holding back. Around ten sectors, including chemistry, are not up to date. Which explains Michel Barnier’s request to open “quick negotiations” .

The unions, however, regret that the Prime Minister did not threaten lagging professional sectors with sanctions.