The Smic or minimum wage for growth is an important indicator in our daily lives. Since 1950, it has set the statutory minimum hourly wage (gross) that all employees in the private sector must receive. Here’s what you need to know about the minimum wage, how much it is, and how it works.
What is the minimum wage?
In December 2022, the gross hourly minimum wage is 11.07 euros. On January 1, 2023, it will be revalued by 1.81% and therefore will be €11.27.
If we calculate on a monthly basis, this currently results in EUR 1678.95 gross per month for 35 hours, and €1,709 on January 1, 2023.
Mayotte has a different amount: 8.51 euros gross per hour or 1290.68 euros gross monthly.
Why state gross and not net?
The gross figure does not indicate what amount you actually get in the end. The concern is that if the gross amount is the same for all private sector workers, the contributions will differ depending on the job.
However, the net amounts can be estimated on average: 8.94 euros per hourand 1353 euros per month.
How is the minimum wage calculated?
The Smic is calculated using two factors: the observed inflation for the 20% of households with the lowest income (or consumer price index excluding tobacco) and half the purchasing power gain of the average hourly wage of manual and white-collar workers.
Who is affected?
It applies to all adult employees in the private sector, regardless of the form of their remuneration (time, performance, task, piece, commission or tip).
However, note a few exceptions: trainees and employees under the age of 18, as these are contracts that benefit from certain discounts. An employee under the age of 18 who has not yet had 6 months of professional experience in his industry can receive a reduced minimum wage (9.96 euros gross per hour with 17, 8.86 euros up to 16 years of age).
VRPs also do not fall under the minimum wage as they are not contractually bound by working hours.
Can my bosses pay me less?
No, because it is the statutory minimum wage. The employer can be fined 1,500 euros if the employee is paid less than the minimum wage. He can also be ordered to pay compensation to the employee who suffered the damage.
How can I check if my salary is at least minimum wage?
If it were enough to compare the gross amount of your salary with that of the smic, it would be easy. But as always, there are flaws.
In fact, only certain amounts are taken into account: base salary, benefits in kind, tips, performance bonuses, short-time work compensation, performance bonuses, year-end bonuses and/or holiday bonuses for the month in which they are paid.
Excluded are therefore reimbursements (including the flat-rate travel allowance), surcharges for overtime and for Sunday/holiday/night work; fixed premiums; profit-sharing or profit-sharing awards; bonuses for length of service, attendance or in relation to special working conditions (unhygienic); and holiday and/or year-end pay unless paid in monthly instalments.
What is the difference to the conventional minimum?
The Smic is the legal minimum hourly wage. The employee cannot be paid below. However, depending on the area of activity, a collective agreement may set a different minimum amount.
If the agreed minimum is below the Smic, the employer must pay a wage supplement to reach the Smic level. If, on the other hand, the contractual minimum is higher, the employer pays what the collective agreement stipulates.
Are officials affected?
Officially, the Smic affects only private sector employees. In fact, however, the salaries of civil servants are being systematically aligned with the minimum wage. Thus, on Thursday, December 22nd, the government announced that the lowest public sector salaries will be increased by 1.8% on January 1st, 2023. This corresponds to the increase in Smic.
“The Council of Ministers has passed a draft regulation that will increase the minimum salary in the public sector to EUR 1,712.06 gross per month from January 1, 2023,” explains the Ministry of Public Service in a press release. The measure “will affect nearly 409,000 civil servants employed by the state, local authorities and public hospital facilities.”
Is the minimum wage only recalculated once a year?
no The amount of the Smic is automatically reassessed on January 1st each year, but adjustments can be made during the year if the consumer price index rises by at least 2%.
In the last ten years there have been three cases in which the minimum wage has been increased several times in the same year. In 2012, it was increased by 0.3% in January and by 2% in July. In 2021, it was 1% in January and 2.2% in October. And in 2022, it increased by 0.9% in January, 2.6% in May and 2% in August.
Infographic Smic Visactu
In ten years, between January 1, 2013 and 2023, the Smic increased from EUR 1398.37 to EUR 1709.28 gross per month.
What is the “Boost” increase?
The minimum wage is reassessed every January 1st and throughout the year according to the increase in the consumer price index.
However, this does not prevent a so-called “boost” increase, which will be decided by the government at any time during the year. But it’s rare.
The last took place in 2012. In July, the government under the presidency of François Hollande introduced a “boost” of 0.6%. Coupled with a general price increase of 1.4%, the minimum wage increased by 2%. The previous cases come from the years 2006 (+0.3%) and 2001 (+0.29%).