Smic: “No boost” beyond the automatic increase of January 1, confirms Élisabeth Borne



The government will not grant “No help” to the minimum wage beyond the automatic increase of 0.9% planned for January 2022 to compensate for inflation, indicated Thursday, December 16 the Minister of Labor, Élisabeth Borne.

→ ANALYSIS. Increase purchasing power, yes, but how?

“We are not going to give a boost, I can confirm it to you”, declared the minister on CNews, stressing that in one year, the minimum wage “Will have increased by 3.1% to stand at € 1,603 gross monthly, ie 48 € more per month ». “We have a unique system in the world, which is very protective for employees at the minimum wage since it provides for an automatic adjustment taking inflation into account”, she asserted.

“Pressure on certain professional sectors”

The minister defended “The choice, since the start of the five-year term, to increase purchasing power by increasing the activity bonus (and) by removing certain contributions, to increase income without weighing on the cost of labor, which can destroy jobs ”. “This is what leads us to follow (the) economists specializing in the minimum wage, who do not recommend a boost”, she added.

Élisabeth Borne, however, promised to“Continue to put pressure on professional sectors which have a certain number of levels in their salary scales which are below the minimum wage”, citing as an example hotels, cafes and restaurants that employ “More than 800,000 employees”. A “Negotiation meeting”in this sector is scheduled for Thursday afternoon and the Minister“Relies on employers’ organizations to find an agreement with the trade unions”.

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