what about the employees below?

Minimum wage: what about employees below?

SMIC 2021. While the minimum wage must be automatically revalued on October 1, the Minister of Labor called on branches whose social minima are lower than the minimum wage to “revalue” them.

[Mis à jour le 20 septembre 2021 à 09h58] Hotels, restaurants, cafes … In many sectors, companies are facing recruitment difficulties during the start of the school year. Asked about this situation, the Minister of Labor called for a revaluation of the branch minima, lower than the minimum wage. As a reminder, the latter will be subject to an automatic revaluation on October 1, 2021, of nearly 35 euros per month gross. “I have a first idea: the branch minima in this sector are below the minimum wage”, criticized Elisabeth Borne at the microphone of Radio J. “In terms of the attractiveness of the sector, it is a very bad signal. [En conséquence,] all branches which have branch minima below the minimum wage must increase wages. Branch minima lower than the minimum wage, that is not normal “.

The words of the Minister of Labor come at a time when the Prime Minister had also called to “work on wages, in particular on what is called branch minima, a fortiori when they are lower than the minimum wage”. In accordance with the provisions of the Labor Code, the minimum wage will be increased by 2% next month, due to galloping inflation. On October 1, 2021, it will thus reach 1,589.47 euros gross monthly, on the basis of 35 hours, against 1,554.58 euros since January 1, which represents an increase of 34.89 euros gross. The gross hourly minimum wage will thus drop from 10.25 to 10.48 euros gross.

INSEE published the final consumer price figures for August 2021 on Wednesday morning on its website, up 2.2%. The rise in inflation is partly attributed to the rebound in the prices of manufactured products, energy, food and services, details INSEE in its press release. The last increase in the minimum wage, due to inflation, of 2.1% took place in 2011. Some unions and political parties regularly call for a greater revaluation, a real boost in short. The CGT defends a minimum wage of 1,800 euros. For now, the government rejects this option, judging that an increase would penalize hiring.

The Smic is the legal minimum wage that an employee must receive in France. An employee cannot therefore be remunerated below this threshold. There are, however, reductions in certain cases, such as employees under the age of 18 and apprentices. If the employer does not respect the legal minimum wage, he is liable to a fine of 1,500 euros and may be ordered to pay damages to his employee. Each year, the minimum wage is automatically adjusted on January 1.

What amount for the 2021 net minimum wage?

The amount of the monthly net minimum wage in 2021 reached 1,231 euros, against 1,219 euros in 2020. As a reminder, the amount of the net minimum wage in recent years has amounted to:

Net minimum wage amount
Year Net monthly minimum wage amount
january 2016 1,143 euros
january 2017 € 1,149.07
january 2018 1,174.93 euros
january 2019 1,204 euros
January 2020 € 1,219
January 2021 € 1,231

“The amount of the net minimum wage received by the employee depends on the company concerned and on certain contributions related to the sector of activity”, recalls the public service on its dedicated page.

Each year, the amount of the minimum wage is reassessed. In 2021, it reached 1,554.58 euros gross per month on the basis of 35 weekly hours, against 1,539.42 euros in 2020. This increase is the result of both the trend in inflation and the rise in the wages of workers and employees. As an indication, here is the evolution of the amount of the minimum wage since 2010:

Evolution of the minimum wage since 2010
Year Hourly minimum wage (gross) Monthly minimum wage amount (gross)
january 2010 8.86 euros € 1,343.77
january 2011 9 euros 1,365 euros
december 2011 9.19 euros € 1,393.82
january 2012 9.22 euros € 1,398.37
July 2012 9.40 euros 1,425.67 euros
January 2013 9.43 euros 1,430.22 euros
January 2014 9.53 euros 1,445.38 euros
january 2015 9.61 euros 1,457.52 euros
january 2016 9.67 euros 1,466.62 euros
january 2017 9.76 euros 1,480.27 euros
january 2018 9.88 euros 1,498.47 euros
january 2019 10.03 euros 1,521.22 euros
january 2020 10.15 euros 1,539.42 euros
January 2021 10.25 euros 1,554.58 euros

The amount of the hourly minimum wage (gross) in 2021 amounts to 10.25 in 2020, against 10.15 euros in 2020. As a reminder, the amount of the hourly minimum wage in recent years has amounted to:

Hourly minimum wage (gross)
Year Hourly minimum wage (gross)
january 2016 9.67 euros
january 2017 9.76 euros
january 2018 9.88 euros
january 2019 10.03 euros
January 2020 10.15 euros
January 2021 10.25 euros

The annual minimum wage for 2021 reached 18,654 euros gross in 2021. The net annual amount, for its part, stands at 14,772 euros this year.

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