The monthly minimum wage will thus be established on January 1 at 1,219 euros net in 2020, against 1,204 euros in 2019, i.e. 15 euros more per month and 173 euros more over the whole year. No additional government support is therefore expected.
There will be no help from the government. The minimum wage will be revalued by 1.2% on January 1, 2020, as was expected. An additional gesture from the executive was hoped for, but the government chose not to respond favorably. The 2.3 million beneficiaries will receive a little more than 15 euros per month more, confirmed government spokeswoman Sibeth Ndiaye.
In detail, the French minimum wage will be established at 1,219 euros net in 2020, against 1,204 euros in 2019, or 173 euros additional over the whole year, said the spokesperson at the end of the Council of Ministers. . The gross hourly rate will increase by 10.15 euro cents, or 8.03 cents net.
Last boost in July 2012
“These are legal increases, so it is not a boost from the government,” added Sibeth Ndiaye, stressing that they would however “indirectly” have an effect on wages. The automatic increase in the minimum wage of 1.2% is linked to an “increase in inflation of 0.7%” and a 0.5% increase in the wages of workers and employees.
This is indeed the result of the application of the legal revaluation, all of the parameters of which are now known to make the calculation, to the nearest rounding. As a reminder, the formula takes into account the annual inflation measured in November for households in the first quintile (the poorest 20%) excluding tobacco, increased by half of the annual change in the purchasing power of the average salary of workers and employees (SHBOE).
This increase is “a little less significant” than that of 2019 which was 1.5%, but “comparable” to that of 2018. It “completes a change in purchasing power whose evolution has been extremely positive on last three years ”, argued Sibeth Ndiaye, since a minimum wage employee has seen his income increase by“ an additional 2,000 euros since May 2017 ”thanks to the mechanical increase in the minimum wage, the increase in the activity bonus and the elimination of part of social contributions.
The last boost dates from July 2012, in the wake of the election of François Hollande. Since then, the only applications of the legal revaluation have led to increases ranging between + 0.3% on January 1, 2013 and + 1.5% on January 1, 2019.