“It is not desirable to go beyond the revaluation of the minimum wage which occurred in November” | EUROtoday

LEmployment in France slowed down sharply on the finish of 2024, and uncertainty across the scale and nature of the budgetary adjustment in 2025 shouldn’t favor a fast restoration within the labor market. In this delicate state of affairs, which can be accompanied by the tip of the inflationary episode, the group of specialists that we’re forming recommends sticking to the anticipated improve of two% of the minimal wage which occurred on 1^er November 2024, and to not transcend 1^er January 2025.

It ought to be remembered that, because the finish of 2020, the minimal wage has elevated by 17%, a bit of greater than inflation (15%), thus successfully defending the buying energy of the staff involved. It now represents 62% of the median wage, France being one of many solely nations, with Portugal and Slovenia, to exceed the brink of 60% really useful by the European Union. The fundamental wage of all workers has solely elevated by 12%, as a result of wage negotiations have gone slower than the tempo imposed by the minimal wage indexation formulation.

This formulation supplies for the minimal wage to be revalued every year by inflation (calculated for the 20% of least well-off households), but additionally by half of the buying energy features of all staff and workers.

Furthermore, as quickly as inflation, because the final improve within the minimal wage, exceeds 2%, an instantaneous revaluation is critical. The minimal wage has thus been raised 9 instances because the finish of 2020.

A calming motion

For the 12 months 2024, this similar formulation ends in a rise of 1.97%, together with 1% for inflation and 0.97% for buying energy – a primary since 2021. This revaluation is in precept relevant to 1^er January 2025, however we should deduct the will increase occurring in the course of the 12 months. However, the minimal wage was elevated by 2% on 1^er November “in anticipation”. So there can be no extra improve on 1^er January within the absence of a lift.

When the minimal wage will increase quicker than different salaries, as has been the case in recent times, the wage scale compresses. Many workers are “caught up” by the minimal wage, and the prospects for wage development are diminished, which fuels a sense of being downgraded.

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