Through Maxime T’sjoen
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Without a boost, the minimum wage could rise again in January 2022.
This is what INSEE suggests, in its economic report for 2022 published on Tuesday, December 14, 2022. In it, the institute provides for a mechanical increase, therefore automatic, of the minimum wage of 0.9%.
This increase should in particular make it possible to cope with inflation, which will continue to rise.
— Insee (@InseeFr) December 14, 2021
What does it represent?
Since the last increase in October 2021, the minimum wage is 1,589.47 euros gross per month. With an increase of 0.9%, the minimum wage would therefore earn approximately 1603 euros gross monthly.
Reported per hour, the gross hourly minimum wage would drop from 10.48 euros gross to 10.57 euros.
To make its forecasts, INSEE refers in particular to the inflation observed for the 20% of households with the lowest incomes, a figure which is not yet known since the institute is due to publish it this Wednesday, December 15.
The minimum wage is also measured on the basis of half of the purchasing power gain of the basic hourly wage for workers and employees (SHBOE).
As a reminder, in 2021, the mechanical increase in the minimum wage was around 1%.
Inflation remains high
But if these forecasts are good for all those who touch the minimum wage, this automatic revaluation will not necessarily help households.
In fact, in these forecasts, INSEE predicts that prices will always remain so high, with inflation in 2022 expected to remain stable, above 2.6%.
“The contribution of energy prices to total inflation would remain significant but would decrease”, specifies INSEE before estimating that “inflation would increase in manufactured products and food”.
Declining purchasing power
In the first half of the year, the purchasing power of the French should fall by 0.5%. A drop that INSEE explains by “the mechanical backlash, in the first quarter of 2022, of the inflation allowance which would support household income at the end of 2021”.
However, the institute recalls that the acquisition at mid-year does not prejudge the evolution of purchasing power over the whole of 2022.
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