The Smicthe foundation of purchasing power for almost 20% of wage earners, has seen eight successive increases since January 2021. In November 2024, an early boost of 2% will be added, demonstrating our determination to support the most modest incomes.
The Smic, a social and economic protection mechanism
The Smic, or salaire minimum interprofessionnel de croissance (interprofessional minimum growth wage), guarantees a minimum wage for all workers. employeesguaranteeing a decent minimum in the relationship between employer and employee. Its primary mission is to combat inequality and preserve the purchasing power of the most modest workers.
Created under the name Smig by the law of February 11, 1950, this minimum wage was intended to boost consumption and reduce poverty. Initially set at 64 francs, it was indexed to inflation from 1952 onwards. In 1970, the Smic replaced the Smig, with the aim of bringing this minimum in line with average wages and ensuring better economic protection for employees. Since then, it has remained an essential instrument of social regulation, adapting its value over time to meet economic challenges.
Who benefits from the Smic in France?
The Smic applies to all adult employees in the private sector, regardless of how they are paid. Whether paid by the hour, month, task, output, piecework or commission, everyone benefits from this protective base. Even trades based on tips.
In 2023, according to Dares data, 17.3% of private-sector employees, i.e. around 3.1 million people, received this type of payment. salary minimum wage. This figure is particularly marked among part-time workers and those employed in very small businesses (VSEs). The issue is all the more crucial for women, who account for 57.3% of beneficiaries in this sector, underlining an economic reality with complex nuances.
Income taken into account when calculating the Smic
The Smic in mainland France and its overseas territories comprises several components, ensuring a minimum wage for all workers. The basic salary, benefits in kind such as meals and accommodation, and bonuses directly linked to productivity make up this minimum wage. compensation minimum. All these elements must be at least equal to the minimum wage.
On the other hand, certain forms of income are not taken into account when calculating the Smic. Expense reimbursements, overtime bonuses, seniority bonuses, attendance bonuses and profit-sharing bonuses are not included. Similarly, vacation and end-of-year bonuses are excluded, unless they are integrated into the salary in monthly instalments.
Understanding the difference between gross and net Smic
The gross Smic represents the total amount before any deductions, a figure that includes the basic salary as well as the contributions payable by the employer. This is the initial promise, the one displayed on the contract, but which, once subject to tax and social security rules, is transformed for the employee. In fact, this gross amount is intended to cover various social contributions, such as pension, health insurance and unemployment.
The net Smic, on the other hand, is what the worker actually receives, once all these charges have been deducted. It’s the available salary, the one that hits the bank account at the end of the month. In short, it’s the version of the Smic that speaks directly to the wallet, concrete and tangible.
New Smic increase in November 2024: what you need to know
From November 1ᵉʳ 2024, the Smic will benefit from an anticipated 2% revaluation, marking a new boost decided by the Minister of Labor Astrid Panosyan-Bouvet. Announced at the Council of Ministers meeting on October 23, 2024, this increase is designed to preserve employees’ purchasing power in response to the current economic situation.
The gross Smic hourly wage has thus risen to 11.88 euros, while the net Smic has reached 9.40 euros per hour. Until October 2024, it stood at 11.65 euros gross and 9.22 euros net respectively, illustrating the tangible impact of this increase.
From a monthly perspective, the gross Smic is now 1,801.80 euros, with a net amount of 1,426.30 euros. This new level represents an increase of 34.88 euros gross and 27.61 euros net per month. The annual minimum wage rises to 21,621.60 euros gross, equivalent to 17,115.6 euros net.
When does the Smic increase in France?
Smic increases follow a precise timetable, and may also respond to particular economic contexts. Traditionally, an automatic increase takes place every January 1ᵉʳ, in accordance with the provisions of the French Labor Code. This annual revalorisation is indexed to inflation, particularly that affecting the lowest 20% of households, in order to maintain their purchasing power in the face of rising prices.
There are also increases during the year. If the monthly consumer price index for the most modest households (excluding tobacco) shows an increase of at least 2% on the previous year, the Smic is automatically readjusted to follow this trend.
Finally, the government may choose to grant a “boost” after consulting a group of experts, usually in November. This exceptional gesture is designed to reinforce the protection of employees’ incomes when the economic situation so requires.
Hotel Smic: a specific framework adapted to the sector in 2024
In the hotel-restaurant sector, the Smic hôtelier differs from the legal Smic in that it is based on collective bargaining agreements and takes into account the specific features of the sector, in particular those of the hotel manager’s job. waiter.
Unlike the legal Smic, based on a 35-hour week, the hotel Smic is based on 39 hours, with a 10% increase for hours worked between 36ᵉ and 39ᵉ hours. This framework, set by the Hotels, Cafés and Restaurants (HCR) collective bargaining agreement, requires employers to strictly adhere to the applicable minimum wage.
As of January 1ᵉʳ, 2024, the hourly rate of the Smic hôtelier started at 11.72 euros gross for employees in level 1, step 1. This amount changes with the step: for example, an employee in step 3 at level I receives 11.90 euros gross, while level III, step 3, reaches 13.69 euros gross. For executives, the hourly rate can rise to 27.81 euros gross at level V, step 3.
This minimum wage often includes benefits in kind, such as the provision of meals, valued at 4.15 euros per unit. This specific calculation adjusts to the realities of the sector, guaranteeing a minimum adapted to working conditions. work and the specific requirements of the hotel and catering industry, while complying with conventional remuneration standards.
You can find all jobs in the hotel and catering sector You can find out which jobs in the hotel and catering sector are covered by this specific minimum wage in our job descriptions.