After the first annual revaluation carried out on 1 January, the minimum wage increase (Smic) may increase again from next summer.
As of January 1, the gross amount of the minimum wage has increased to 11.65 euros per hour or 1,766.92 euros per month at the full rate (1,398.69 euros net per month, an increase of 15.61 euros). This is the 7th hike in the minimum wage since October 2021.
As for the next increase, it may come sooner than expected. Indeed, according to estimates provided by INSEE moneyvox, This should happen in August 2024. According to the Labor Code, the “annual determination of the minimum wage increase” takes place on January 1 of each year, but there may be an exceptional revaluation of the minimum wage during the year.
Two minimum wage hikes during the year?
According to the law, this improvement occurs when the price suffered by the lowest 20% of households increases by more than 2% compared to the last increase in the minimum wage amount. If this extraordinary revaluation of the minimum wage is unlikely to happen in the first half of 2024, INSEE estimates that it could happen during the second half of the year, “ Our inflation forecast will lead to price developments close to the automatic minimum wage revaluation threshold in June 2024. », predicts INSEE, question by Moneyvox.
So we will have to wait until the June figures confirm the increase in the minimum wage. ” If the threshold crossing materializes on this date (in June), it will result in an increase of approximately 2% of the minimum wage in August 2024. », according to the report of INSEE. Naturally, this scenario is for the moment only a hypothesis put forward by the National Institute of Statistics and Economic Studies.
After experiencing strong growth in 2023, “ The inflationary episode is easing: Inflation, in the sense of the Consumer Price Index, fell to 2.9% over the year in February 2024 (as per provisional estimate) against +6.3% a year earlier and this decline should continue to +2.6. % in the month of June », detailed INSEE. For its part, the Banque de France has forecast inflation to fall to around 2.5% in 2024. So at the end of June we will know more about this possible reassessment of SMIC.
