New increase in the French minimum wage from May 1, 2022

increased french minimum wage

UPDATE: France further increased the minimum wage from August 1st, 2022. Click here to find out more.

Table of contents

  1. What is the SMIC
  2. What changes from 1st May 2022
  3. Regulatory Framework
  4. How we can support you
  5. Book a call
  6. Get a quotation from our Experts

 

1. What is the SMIC

The SMIC is the French legal minimum hourly wage, below which the employee cannot be paid. It applies to all employees of age, regardless of the form of their remuneration.

The employer can be sentenced to a penalty of €1,500 if he pays the employee less than the minimum wage, in addition to the penalties provided for non-compliance with transnational posting requirements.

2. What changes from 1st May 2022

The amount of the SMIC is automatically revalued on 1 January each year on the basis of two indicators:

  • observed inflation for the 20% of households with the lowest incomes;
  • half of the increase in purchasing power of the average hourly wage of workers and employees.

 

In addition, the Labour Code provides for an automatic revaluation of the minimum wage during the year when the consumer price index increases by more than 2% compared to the index taken into account in determining the last amount of the SMIC. It is then automatically raised in the same proportions.

With this automatic increase, the gross hourly minimum wage will go from € 10.57 to € 10.85, and the gross monthly minimum wage for a full-time person will go from € 1,603.12 to € 1,645.58.

Regulatory Framework:

How we can support you:

A&P offers its clients all-round support for the management of employees abroad, including verification of salary alignment with the equivalent salary level in the foreign country.

By entering some specific data on the employee’s remuneration, the A&P Posting Portal automatically compares the salary level and alerts the company regarding the supplement to be paid to the employee for the hours worked abroad.

Using the online platform, A&P guarantees the elaboration of the relevant documents for your assignment within 1 working day.

There are 2 ways to contact us:

  • Email – get a quotation through the form below. We will reply within 2 business days;
  • Call – You can directly schedule a call with our Experts at “Book Video-Call” at the bottom-right of this page. Choose the date and time that best suits you!

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