France is going through a period of economic crisis from which it struggles to emerge, experiencing ups and downs on the health front due to the health emergency. The unemployment rate reaches 10%, which is higher than in other European countries like Germany, where it stands at 5%.
While Covid variants continue to scare the population, the country’s economy seems to have found a remedy in the minimum wage, which in 2021 has become a central theme again in France and other European Union countries. The wave of wage increases, which began in the United States with the “Fight for $15” movement campaigning for wages above $15 per hour, considered to be the poverty threshold, saw its first significant repercussions in France as well, where from October 1, 2021, the minimum growth wage (Smic) increased to 10.48 euros per hour. At the national minimum threshold, negotiations for individual categories have also been added, leading to new and significant wage increases for various sectors, especially the tourism sector, which saw a 16% increase in the minimum wages of its operators.
Since January 1, 2022, the Smic has been revalued
The new gross hourly Smic amount has been set at €10.57, which totals €1,603.12 monthly based on the legal working duration of 35 hours per week.
But what is the Smic? The minimum growth wage corresponds to the legal hourly minimum wage that a worker must receive. However, deductions are applicable to apprentices and workers under 18 years old.
Why workers need the minimum wage
It is always useful to remember that the minimum wage is a necessary measure to protect workers’ rights. Time and again, we have seen it as a weapon against market distortions and, more generally, globalization. It is essential to prevent labor costs from becoming a bait to attract large companies to countries where workers receive very low wages, facilitated by almost nonexistent collective bargaining.
Moreover, the minimum wage is essential to prevent and contain the increasingly widespread phenomenon of working poverty. Indeed, it is estimated that around 10% of European workers earn less than the contractual minimum. In France, an employer can be fined heavily if they pay a worker less than the Smic.
New 2022 contributions table
The final social contributions for 2022 depend on the final income and each affiliation category. This 2022 social contributions table already gives you an idea of these amounts. Moreover, you can perform a detailed simulation of your final contribution amounts by accessing this online platform.
