Minimum wage in France (SMIC) in 2023 May 2023: inflation higher than expected
During 2022, the SMIC was revalued 3 times due to the consumer price index increasing several times by at least 2% since the previous SMIC increase.
Following the increase on January 1, 2023, it was announced that the SMIC would be raised on June 1 in light of inflation data released by INSEE. The increase will take place earlier than expected because inflation is higher than expected.
INSEE has released its Consumer Price Index for March. According to an INSEE note published on April 14, the change in the Consumer Price Index (CPI) between November and March increased from 113.58 to 116.07, representing a 2.19% increase.
As a reminder, the SMIC is revalued every year on January 1st according to two criteria inflation measured for households in the first quintile of the living standards distribution.
In France, however, the Labor Code also provides for a mechanical revaluation of the SMIC whenever the Consumer Price Index (CPI) increases by at least 2% since the previous SMIC revaluation (Labor Code, Article L. 3231-5).
This is according to the consumer price index (final results) for March, which has just been published by INSEE.
If we take into account this 2.19% increase, the SMIC should increase from €11.27 gross to €11.52 gross per hour as of May 1, 2023. This would amount to €1,747.20 gross per month. This amount is subject to confirmation by the Ministry of Labor and publication of a regulation in the Official Journal in the coming days.
