Wages 2023: who is affected by the 4% increase?

An overall increase of 4% for 2023 salaries? Who does this benefit? Is this sufficient given the inflation which will continue to rise?

galloping inflation, rising energy prices … The year 2023 promises to be complicated for many households. For annual interviews, employees are in the starting blocks . What increases can they hope for 2023 wages ?

Salaries in 2023: a general increase

Traditionally, the season for annual negotiations runs from early December to early February . However, this year, employers are rather ahead of the game. Moreover, Franck Chéron made the remark.

'There are indeed companies where the annual negotiations have been brought forward to 2022 in the face of inflation. »

Partner at Deloitte and human resources specialist says many companies today try to be proactive on salary negotiations . A reaction clearly faster in times of crisis, according to him.

Additionally, employers also do not hesitate to increase general for all their employees. People Base CBM interviewed 644 companies, including 57.9% intend to increase generalized wage plan for 2023. It was on the occasion of the 11th edition of its annual study on compensation.

We are talking about a increase of 2.99% on average . This is a percentage that is a minimal boost in these businesses.

Individualized nudges

Last year, just under 42% of companies were inclined towards a general increase. They were at 31% in 2019 . Only, this trend will not be sustainable if we stick to what Cyril Brégou says.

' The share of general increases is at a particularly high level if we compare it to the years before the crisis ', explains Cyril Brégou who is also a partner at People Base CBM.

The overall increase does not however prevent individualized nudges. these affect more than 99% of companies questioned by this firm. However, these individual increases affect, to varying degrees, more than 55% of employees. We are talking about increases in the order of 4.25% on average .

An overall increase of 4%

According to estimates by the same firm People Base CBM, the overall increase in 2023 salaries will be at 4.05% . A percentage that clearly makes consensus. Indeed, Deloitte, Alixio, WTW have all conducted studies leading to the same figure as that of People Base CBM. That's to say a forecast salary increase of 4% or slightly more.

Even the estimate of the progression of the average salary per capita established by the European Commission results in the same number . Moreover, this year, this increase is much more homogeneous than in the past.

According to Franck Chéron, it is the energy, finance and pharmaceuticals sectors that generally push the increases the most. Which is again the case, except that this year, it's actually much more widespread than usual .

'Even the non-profit sector [associative, ESS, etc.] is planning increases, on average of 2%, which is unusual. »

Salary 2023: higher salary increases for non-executives

Furthermore, he could be another 'unusual' fact according to Franck Cheron. It is very likely that the salary increases from which non-executives will benefit are higher than those granted to executives .

However, not everyone will be happy with these high-sounding percentages . Recruitment firm Robert Half conducted an online survey. It was November 17, 2022 with a representative panel of 1,000 French employees aged 18 to 55.

Results : 78% of them would like a proportional increase to inflation. In November 2022, INSEE estimated the latter at 6.2%. Which is obviously much higher than the 4% anticipated for salary increases in 2023.

Should we aim for the 4% average increase or the 6% inflation?

So what would you say if your boss told you a 5% raise? Should you consider yourself lucky (since you are doing better than average)? Or would you consider yourself losing to inflation, which will soon reach the 7% mark ?

For the national secretary of the CFDT, there is no doubt, here is what he says :

' That the salary negotiations lead to increases is obviously satisfying... but be careful: when we deduct inflation, the net purchasing power will decline! And it's a novelty, a first for about 40 years! »

He therefore estimates that, this year, asking for 7% is not indecent .

Source : Moneyvox