French minimum wage (Smic) early increase December 1, Digi Mart USA News: The French government will accept an early revaluation of the Smic, the national minimum wage, effective December 1, BFMTV reported on Sunday, November 8. The increase would take net monthly pay above €1,500, up from the current €1,477.
Two long-awaited decrees could also be published. The first is the so-called “Guedj” decree on social security contribution exemptions, which has been blocked at Matignon, the prime minister’s office, since July.
It would change how employer contribution exemptions are calculated: the reference would no longer be the Smic but the first pay level set in each professional sector. The aim is to limit low-wage traps and encourage companies to raise the entry levels of their pay scales.
The second is a decree on the transparency of public aid. Companies would be required to disclose the public aid they receive, as well as the social contribution exemptions they benefit from.
The measure is intended to strengthen transparency over how public money is used.
The government also expects firm wage commitments from businesses. It intends to ask companies to launch a new round of mandatory annual wage negotiations (NAO), along with rapid negotiations within industry sectors to raise minimum wage scales.
The situation is described as concerning: one industry sector in two reportedly has not renegotiated its pay scale in ten years, and 69 sectors still show conventional minimum wages below the Smic.
To make the arrangement acceptable to employers, the government could offer several concessions, provided negotiations move quickly. These include a thaw in employer contribution exemptions, which are frozen in the budget, and the possibility for companies to recover part of the savings made on the activity bonus.
For the civil service, a partial thaw could be announced to unions next Friday.
