these employees who see their remuneration caught up by the minimum wage

Barthélémy Philippe, edited by Romain Rouillard

On January 1, 2023, the SMIC will reach 1,709 euros gross or 1,353 euros net, i.e. an increase of 100 euros in the space of one year. Indexed to inflation, it now exceeds the monthly income of certain employees, who then see their remuneration fall to the legal minimum. A situation that the bosses wish to avoid.

Another rise in the minimum wage on the horizon. With the new revaluation of nearly 2% scheduled for January 1, the amount of the minimum wage, indexed to inflation, will reach 1,709 euros gross or 1,353 euros net. In one year, the minimum wage has increased by more than 100 euros. If the employees concerned welcome the news with enthusiasm, employees who receive an income slightly above the minimum wage will not have the chance to see their remuneration keep up with inflation.

To the point that some modest employees can see their monthly salary caught up by the minimum wage. What constitute a big headache for the bosses who, given the current economic situation, do not necessarily have the means to increase low wages. Therefore, they are content to obey the law. Thus, in the event that the amount of the minimum wage exceeds the lowest wages, the employees concerned will then switch to the legal minimum.

“As soon as they find the opportunity, they will increase their employees”

Nevertheless, the majority of bosses do everything to avoid this kind of situation, according to Eric Chevée, president of the Confederation of small and medium-sized enterprises. “The question that will arise for the business manager, it’s ‘do I make a salary increase that is sustainable and that will weigh on my payroll or do I go through a bonus system first’. I’m not sure that business leaders are not attentive to the fact that employees who were not on minimum wage and who are caught up quickly leave this area. As soon as they find the opportunity, they will increase their employees to put them above the minimum wage,” he said.

And according to the Dares (Direction for the animation of research, studies and statistics), 2.5 million employees were paid the minimum wage on January 1, 2022, or 15% of total employees.