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Salary: the minimum wage will automatically increase on May 1

ATu 1er May, the minimum wage will automatically increase between 2.4% and 2.6%. The high inflation recorded over the past four months is the cause of this increase, according to an estimate by the Ministry of Labor contacted Thursday by Agence France-Presse. The exact increase will be known on April 15 when INSEE publishes its final estimate of the price increase in March. According to its provisional estimate published Thursday, the increase in the consumer price index (CPI) stood at 4.5% in March over one year.

Currently at 1,603 euros gross per month, the minimum wage should be in a range between 1,641 and 1,647 euros on 1er may. Net, it would go from 1,269 euros to 1,299-1,304 euros, an increase of 30 to 35 euros. The gross hourly minimum wage would rise from 10.57 to 10.82-10.85 euros.

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What the Labor Code provides

This increase is mechanical, because the Labor Code provides that “when the national consumer price index reaches a level corresponding to an increase of at least 2% compared to the observed index” when establishing the minimum wage “immediately prior”, the minimum wage is raised “in the same proportion” the following month.

However, the figures published Thursday by INSEE show that the increase in the price index exceeded this threshold in March compared to November 2021, the reference month for the last revaluation in January. The rise in the minimum wage is calculated on the basis of the rise in prices for the 20% of the poorest households, among whom the increase in energy is even more felt. In January, the minimum wage had increased by 0.9% after an exceptional increase of 2.2% in October, already due to inflation.

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