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Smic: the group of experts recommends refraining from a "boost" on January 1

2020-12-02T07:29:06.268Z


These economists believe that the Covid-19 crisis "reinforces the priority to be given to employment (...) and not to purchasing power gains".


The group of experts on the minimum wage recommends refraining from any "

boost

" on January 1 and believes that sticking to the automatic revaluation will still allow "

a gain in purchasing power

", according to its annual report consulted Tuesday by AFP.

Read also: Billion after billion, measure the cost of the crisis

In this document, presented in the afternoon to the Minister of Labor Élisabeth Borne, the panel of economists consulted before each revaluation of the minimum wage, justifies its recommendation by "

structural reasons to which are added the effects of the crisis due to to Covid-19

”.

They underline that before this crisis which constitutes a "

colossal economic shock

", the situation of the French economy "

remained fragile

" and consider that an increase beyond the automatic revaluation "

would risk being detrimental to employment. of the most vulnerable

”.

"

The situation of the French economy has been turned upside down by the Covid-19 crisis, and the new configurations caused by this upheaval do not plead for a boost either,

" they add.

"

The state of the labor market and the financial situation of most companies have deteriorated considerably and a major uncertainty hangs over the possibility of a rapid recovery

", they observe, estimating that "

this situation reinforces the priority to grant to employment (...) and not to purchasing power gains

”.

Consulted every year since 2008 before each revaluation, the group of experts has always advised governments not to give a "

boost

".

The minimum wage benefits each year from a mechanical increase, calculated according to two criteria: the inflation observed for the 20% of households with the lowest incomes and half of the gain in purchasing power of the basic hourly wage of workers and employees (SHBOE ).

On January 1, 2020, the minimum wage was thus increased by 1.2%, without a boost for 2.3 million beneficiaries.

It currently stands at 1,219 euros net monthly.

For 2021, experts indicate that according to a “

provisional estimate

”, the automatic revaluation which would be of the order of “

0.99%

” would allow “

an increase in purchasing power greater than last year

”.

Read also: No, the RSA does not exceed the minimum wage ... even with the exceptional Covid-19 bonus

As in previous years, the group of experts recommends modifying the formula for revaluing the minimum wage, by removing “

all or part

” of the automatic revaluation terms.

In particular, they believe that this would give "

increased responsibility to the public authorities, which could thus better coordinate changes in the minimum wage with changes in the labor market

".

Source: lefigaro

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