Minimum wage in France to increase by € 1,481 gross per month

Minimum wage in France to increase by € 1,481 gross per month

In France , the minimum wage (SMIC) will be revalued on 1 January 2017 but without benefit of a “boost”. The Minister of Labour , Myriam El Khomri, announced, Monday, December 19, the social partners, at a meeting of the National Commission for collective bargaining (CNNC).

This trade is not a surprise: it is consistent with the opinion of a committee of independent experts to enlighten the executive on the subject. This recommended “prudence and moderation” in view of “a situation of employment remains precarious” and “a persistently high unemployment rate.”

Each year, the government must say whether the minimum wage is raised solely according to an indexation formula that takes into account notably of inflation (measured for 20% of households with the lowest incomes) or s’ It goes a little further. Three months after taking office at the Elysee Palace, in May 2012, François Hollande had decided, as he had promised during his election campaign a boost in the minimum wage by 0.6%. It was added to the revaluation of 1.4% applied on 1 July 2012 to offset rising prices.

Since no “boost” was given, and therefore will be the same next year: the minimum wage will increase by virtue of the mechanism provided by statute, an increase of 0.93% who made the pass of 9.67 euros per hour to 9.76. Concretely, a full-time employee (ie 35 hours) will earn 1,481 euros gross per month, or 1,153 euros net, according to the Ministry of Labor.

The executive believes that increasing the minimum wage is not the best instrument to boost the purchasing power of employees: an increase of 10 euros only results in an income increase of “1-2 euros” because of taxes higher and lower social benefits.

Other levers must be operated, for the government to improve the workers’ resources: for example, reduce the income tax (as the 2017 budget provided for about 5 million taxpayers) encourage wage negotiations in branches or to ensure that eligible individuals the premium for the demanding activity.

Elsewhere in Europe , some countries have opted for more frank increases. Last in date, Spain . In early December, the Conservative government announced an 8% increase in the interprofessional minimum wage (MMI). A count of 2017, it will rise in twelve months of 764-825 euros per month. Claimed by the Socialist opposition, this increase is the strongest in thirty years.

Further north, Great Britain also agrees an important symbolic gesture. Moving towards the Brexit – the output of the European Union (EU) which voted for many low-income households – the British new executive announced that the minimum wage would be revalued by 4% from April, a year after first increase of 7.5%, and it will then go to 7.5 pounds gross (8.8 euros) per hour. In total, it is expected to increase by 20% in five years.

Further north, Great Britain also agrees an important symbolic gesture. Moving towards the Brexit – the output of the European Union (EU) which voted for many low-income households – the British new executive announced that the minimum wage would be revalued by 4% from April, a year after first increase of 7.5%, and it will then go to 7.5 pounds gross (8.8 euros) per hour. In total, it is expected to increase by 20% in five years.

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