Purchasing power: what salary to live well in France?

After months of inflation, the purchasing power of the French has dropped significantly. Household income is no longer enough to live decently.

In 2022, many prices have risen sharply . Due to inflation, getting around, heating or feeding is now much more expensive. In this context, Economic Alternatives recently mentioned the purchasing power of the French . According to economist Pierre Concialdi, there are an income threshold required to live in dignity in France. Nevertheless, the recent developments that took place in 2022 have weakened households. Depending on the composition of your household, here i the amount needed to make ends meet .

A first study conducted by ONPES in 2014

Launched in 1998, the national observatory on poverty and social exclusion , regularly carried out work on purchasing power. Since then, this state agency has experienced a dissolution in 2019 . That said, the questions raised by this research institute remain very relevant.

Thus, in 2014, ONPES released several indicators concerning the income of the French . According to the institute, a single person could live peacefully from 1,424 euros per month. On the other hand, for a couple with children, this income increased to 3,284 euros . Since then, with the rise in prices in France, these figures have increased.

In effect, income levels suggested by ONPES do not correspond to the minimum wage or the poverty line. They indicate the standard of living required for food, housing, but also have a social life or go on cultural outings . Income takes into account purchasing power without being limited to what is strictly necessary. But according to economist Pierre Concialdi, this observation seems much worse, almost 8 years after the first study .

Purchasing power: how much does it take to live decently in 2022?

If we resume income recommended by ONPES in 2014 , the figures should be updated. In 2022, the necessary sums amount to 1,634 euros for a single person . For a family with two children, the economist indicates a required income of 3,744 euros.

However, nowadays, many French people do not have so many resources. While their budget has increased from 200 to 300 euros in recent years. The works of Pierre Concialdi take into account expenses that have become more important in our time. This corresponds to budgets related to holidays or gifts with friends . At the same time, the prices of vital purchases (energy, food) are constantly rising.

For the economist, this lack of purchasing power comes from the level of the SMIC . Indeed, the amount of the minimum wage would remain too low to finance a decent life. Remember that in 2023, the minimum wage will increase to 1353 euros net per month. We are therefore well below the minimum standard of living required by Pierre Concialdi .

If the French can still make some concessions on their budget, their situation becomes critical. In 2022, half of the population had an income less than or equal to 1789 euros net . This means that their purchasing power is already very low. Other studies published by Oxfam in November 2022, describe worrying poverty in France. Thus, nearly 17% of the population lives below the poverty line, with less than 1,102 euros . This drop in purchasing power is making already modest citizens more precarious. Also, those with the lowest incomes remain: students, the working poor. Insecurity would also have serious consequences for people with disabilities.

Source : Current wife