top cx logo
cx logo
Explorearrow down
search icon
Explore
arrow down

Minimum wage in France to rise again due to increased inflation

The ‘Smic’ increases automatically in line with an index linked to inflation, which figures show is up by 2.01%

A wallet with a 5 euro note and coins falling out

Inflation in France triggers increases in the minimum wage automatically Pic: Wolfilser / Shutterstock

The minimum wage in France is set to increase by 2.01% from August this year due to rising inflation.

This is the fourth time it has risen in just over a year, after the most recent increase of 2.65% last May.

Read more: France's minimum wage to rise on May 1 as inflation continues to go up  

Monthly Smic wages will now rise by €26 net to reach around €1,328.

The French minimum wage, known as ‘Smic’, rises automatically in line with inflation. Today (July 13), statistics bureau INSEE announced that inflation reached 5.8% in June, year-on-year. 

To calculate the Smic rise, INSEE considered rising prices (except for tobacco) affecting 20% of the least-well-off households. This has risen by 2.01% between March and June 2022, and it is this figure which decides the new Smic wage.

In June, rising costs were caused mainly by continually increasing energy prices (up 33.1% year-on-year, compared to 27.8% in May), as well as food prices (up 5.8% compared to 4.3%) and the cost of services (up 3.3% versus 3.2%).

The indice des prix à la consommation harmonisé (harmonised index of consumer prices (IPCH), which serves as a basis for comparison at European level, shows an increase of 6.5% for June over one year, after a rise of 5.8% in May.

If food and fuel are disregarded, prices have remained relatively stable over the year, rising by 3.7%. 

Related articles

Minimum wage in France is rising – what is the average salary now?

Inflation rate rise triggers new minimum wage rise in France

Resident or second-home owner in France?
Benefit from our daily digest of headlines and how-to's to help you make the most of life in France
By joining the newsletter, you agree to our Terms & Conditions and Privacy Policy
See more popular articles
The Connexion Help Guides
featured helpguide
Healthcare in France*
Featured Help Guide
- Understand the French healthcare system, how you access it and how you are reimbursed - Useful if you are new to the French healthcare system or want a more in-depth understanding - Reader question and answer section Aimed at non-French nationals living here, the guide gives an overview of what you are (and are not) covered for. There is also information for second-home owners and regular visitors.
Get news, views and information from France
You have 2 free subscriber articles left
Subscribe now to read unlimited articles and exclusive content
Already a subscriber? Log in now