“Our three levers to “de-microcardiate” France” | EUROtoday

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“We must “de-microcardiate” the France “launched the Prime Minister, Gabriel Attal, to the National Assembly, Tuesday January 30, throughout his normal coverage declaration. “We cannot accept a France where many are condemned to remaining close to the minimum wage their entire career. » The share of employees on the minimum wage in France has in fact increased by almost 50% over the last two years: 12% in 2021, 14.5% in 2022 and 17.3% in 2023, according to figures from Dares.

This increase results from the combination of three phenomena:

  • The minimum wage is automatically indexed to inflation. During a period of high inflation that we have been experiencing for more than two years, it increases sharply, while increases in other salaries have been on average lower than inflation (compensation for the loss of purchasing power has, however, sometimes been granted in the form of bonuses).
  • Many professional sectors still have minimum salaries lower than the minimum wage, which means that all employees at the bottom of the scale automatically find themselves on the minimum wage.
  • Exemptions from social security contributions on low salaries (up to 1.6 minimum wage) discourage employers from granting salary increases. As the Prime Minister clarified, “today, to increase the income of an employee on the minimum wage by 100 euros, the employer will have to pay 238 euros more.” In addition, in keeping with the CAF, a minimal wage worker who receives a rise of 100 euros web per 30 days sees their exercise bonus lowered by 117 euros. Neither the employer nor the worker due to this fact has an curiosity within the wage growing. This is named a low-wage entice.

Fight against the low-wage trap

As a result, many employees have no prospect of progression throughout their career and have a feeling of being downgraded.

But, however, we must not forget the two advantages of this system:

  • The automated indexation of the minimal wage avoids the impoverishment of workers, an automaticity which doesn’t exist in many of the 28 OECD states (out of 36) which have a minimal wage. Demicardization should due to this fact not contain eradicating or lowering the indexation of the minimal wage to inflation.
  • Exemptions from social safety contributions on low salaries assist employers rent individuals with little or no {qualifications}. Indeed, one of many issues of our nation lies in the truth that there are nonetheless round 110,000 younger individuals who depart the college system annually with none {qualifications}. Reducing these exemptions would have a detrimental impact on employment.

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https://www.lemonde.fr/idees/article/2024/02/29/salaires-nos-trois-leviers-pour-desmicardiser-la-france_6219282_3232.html