France: 70% of professional branches to fall below minimum wage after Smic hike

France's minimum wage, the Smic, is set for a 2.41% increase on Monday, adding a modest 35 euros net per month. This adjustment comes as inflation, driven by energy costs, surpassed 2% in April. However, the raise highlights a growing concern: 70% of professional branches will soon have salary scales starting below the national minimum wage.

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A scandalous proportion

According to the Ministry of Labor, 126 out of 179 professional branches will see their minimum pay fall below the Smic as of June 1. This situation requires affected branches to initiate negotiations with social partners within 45 days to rectify their salary grids. While it is illegal to pay workers below the Smic, employees in these branches may see their wages stagnate for years, even with increased seniority or qualifications.

Trade unions are voicing strong opposition to this trend. The CGT estimates that nearly 80% of 230 professional branches now have minimums below the Smic, calling it a "scandalous proportion." Thomas Vacheron, a CGT confederal secretary, argued that wages must rise with prices, not just the minimum wage. He called for all salaries to be indexed to inflation.

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When prices increase, wages must increase too. That is the case for the interprofessional minimum wage. It must be the case for all wages.

The CFDT, another major French union, echoed concerns about an "accelerated" decline into minimum wage dependency across the workforce. Both unions are urging for swift compliance from affected branches and the reopening of branch-level salary negotiations to ensure fair compensation.

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We have the impression that the situation is worsening year after year and that we are experiencing an accelerated "smicardisation" overall.