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SMIC to rise after steep inflation
France to raise minimum wage in May after high rate of inflation forces up the cost of consumer goods.
THE French minimum wage – the SMIC (salaire minimum interprofessionnel de croissance) – is set to go up from next month to match a rise in consumer goods and energy in the last 12 months.
The rise will take place on May 1, before the annual re-evaluation of the minimum wage which takes place every July.
The SMIC is currently set at €8.44 an hour, or €1,280.07 a month, according to French national statistics office INSEE.
The French finance ministry said the wage would be increased because of a 2.3% rise in the rate of inflation since May 2007.
In French law, a rise of inflation of more than 2% automatically triggers an increase of the SMIC by the same amount.
This is the first time since 1996 that the minimum wage has been raised twice in one year, a move that will affect more than two million workers.
The SMIC was introduced in 1970 as the successor to the SMIG (Salaire minimum interprofessionnel garanti) which was introduced in 1950.
Photo: Sxc Steve Woods