Employee: how much will an employee receive the minimum wage from January 1, 2023?

An employee paid the SMIC will see his salary readjusted from January 1, 2023. We explain everything to you.

As provided for by the 2023 finance law, the minimum wage will be subject to a revaluation from January 1st . Find out how much the salary of an employee who receives it will be.

Everything you need to know about minimum wage

The SMIC is the minimum wage that an employer or company can pay its employees . It guarantees a balanced relationship between the two parties and maintains the purchasing power of the employee .

In concrete terms, the minimum wage was introduced to reduce inequalities between employees . Like every worker in the company don't get the same salary . The government, through the SMIC, ensures that those who have lowest pay can still meet their needs.

For information, the SMIC concerns all types of remuneration from the private sector. It must be applied regardless of the terms of payment agreed by the employee and his employer. Whether paid by time, task, commission or tip.

As stated by law, the salary paid to an employee must be at least equal to the SMIC . Otherwise, the company or employer for whom he works will have to deal with justice .

Some forms of compensation are not taken into account in the SMIC calculation . This is particularly the case for:

• expense reimbursements
• supplements for overtime
• participation premiums
• incentive bonuses
• seniority bonuses
• attendance bonuses
• bonuses relating to special working conditions
• holiday and end of year bonuses

Finally, know that the SMIC, in accordance with the labor code , is subject to revaluation at the beginning of each year . Thus, on January 1, the amount of the minimum wage increases. And this, for maintain the purchasing power of the employees who perceive it .

Note that the SMIC can also increase over the years. This is what happens when the consumer price index “reaches a level corresponding to an increase of at least 2%” . And this, “compared to the index observed during the establishment of the previous minimum wage”.

Employee: the amount of the SMIC in 2023

After having been upgraded three times this year , the minimum wage will increase again in 2023. An increase of 1.81% is expected. Which means that within a year, the minimum wage will have increased by around 6.6% .

Concretely, this represents an increase of 106.16 euros gross per month . Thereby, the amount of salary net will then amount to 1,353 euros for 35 hour work per week .

“France is one of the only countries to have such a protective mechanism for the purchasing power of the most modest employees,” boasts the Ministry of Labour, Full Employment and Integration.

For information, the French SMIC ranks 6th in Europe. He narrowly misses the top 5 behind Luxembourg, Belgium, Ireland, the Netherlands and Germany.

Over a period of ten years, the French minimum wage recorded an increase of more than 100 euros . From 1,121 euros in 2013, it rose to 1,231 euros in 2021.

For the civil service too, things will change from January 1, 2023 . The government has indeed indicated that from next year, the minimum wage will be increased to 1,712 euros per month. Are concerned by this increase, plus 409,000 public agents .

Employee: what the finance bill for 2023 provides

The finance bill provides for make some adjustments for the coming year . In addition to the revaluation of the SMIC, an increase in income tax is to be expected.

Income tax is adjusted every year. Last year, for example, it had increased by 5.2% . This increase is expected to continue in 2023. Due to inflation, the government has put all its means to support the population .

In addition, in 2023, the housing tax will also disappear. As a reminder, the government had gradually reduced it since 2018 until reaching 20% ​​of households this year. Households that still had to pay it to the State will be able, from January 1, 2023, to get rid of the tax .

Finally, the finance bill also provides for a readjustment of withholding taxes . The government thus hopes to facilitate the reduction of the difference threshold in the event of a drop in income.

Source : midilibre