Discover the new amount of the minimum wage from May 1

0
39

The health crisis, rising commodity and energy prices and the war in Ukraine have caused the prices of basic necessities and fuel to become prohibitive. Millions of French people find themselves in difficulty faced with the increase in the cost of living.

The revaluation of the minimum wage will therefore be a significant contribution. This is good, because the revaluation of the minimum interprofessional growth wage (SMIC) should come into force on May 1, 2022. According to information collected by AFP from the Ministry of Labor, this increase would be around 2.4 to 2.6%.

The upgradeization of the SMIC

Even if the exact amount will not be revealed until April 15, 2022, the sum of €40 is becoming more and more persistent. It is only a matter of days, the Ministry of Labor awaits the publication of its final estimate of the rise in prices for the month of March. It is after this publication that the exact amount of the revaluation will be officially announced.

The revaluation of the RSA

The RSA will also be revalued. This will undoubtedly help the most modest households. The government plans to increase the RSA as well as the activity bonus. The activity bonus has increased by 1.8% since April 1, 2022. As for the lump sum, it now reaches €563.68 whereas it was €553.71 before April.

It should be noted that in France, more than 4.5 million people live on this allowance issued by the CAF. For people living alone, the RSA went from €565.34 to €575.52. This is equivalent to an increase of ten additional euros.

What is inflation?

Inflation is the increase in the price of goods and services that occurs over a period of time. We then say that the purchasing power decreases or that the cost of living increases. In France, inflation is measured by INSEE. The variation of specific consumer products is thus calculated and measured over a well-defined period. When the organization notices a rise in prices, it is called inflation.

There is no inflation when the cost of certain products rises while being compensated by the fall of other products. On the other hand, if the average price of consumer prices falls, it is called deflation. Each year, the SMIC is calculated in relation to inflation.

In the month of March 2022, it was noted that in France the cost of living has increased by 4.5% in one year. These provisional figures from INSEE confirm the 3.6% increase observed in February 2022. This trend has continued to worsen since 2017.

The second upgrade of the year

The continual increase in the standard of living prompted the Ministry of Labor to act. Although it is only April, there has already been talk of raising the amount of the minimum growth wage (SMIC) twice.

This increase of around 2.5% in the minimum wage is supposed to offset the consequences of inflation measured at 4.5% by INSEE in one year. In fact, the monthly minimum wage should therefore increase from 1,269 to 1,304 euros. Please note that these are only estimates. The exact amount of this revaluation will not be communicated until April 15.

The Labor Code recognizes the need for an increase in the minimum wage when the level of inflation exceeds 2%. We are therefore impatiently awaiting the date of April 15 to see the final report from INSEE. The last time the minimum wage increased was on January 1, 2022. It was an automatic increase of 0.9%.

Note that if an employer came to pay an employee less than the legal amount of the minimum wage, he risks a fine of €1,500. And this, in addition to an order to pay damages to the person he employed.

©️ Tekpolis editorial staff any reproduction of our articles without our consent will be reported to Google and Facebook

LEAVE A REPLY

Please enter your comment!
Please enter your name here