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.
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%.