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In 2020, during the crisis, wages rose in the private sector

2022-04-26T15:34:27.378Z


State support, in particular via short-time working, helped maintain income over the year. After an already record increase of 1.2% in 2019, i.e. double the average annual increase of the last twenty years, wages have accentuated their rise in 2020 in the private sector. According to INSEE figures published on Tuesday, they have indeed jumped 3.2% over one year. Employees earned on average 2,518 euros net of contributions and social contributions (the equivalent of 3,300 euros gross), c


After an already record increase of 1.2% in 2019, i.e. double the average annual increase of the last twenty years, wages have accentuated their rise in 2020 in the private sector.

According to INSEE figures published on Tuesday, they have indeed jumped 3.2% over one year.

Employees earned on average 2,518 euros net of contributions and social contributions (the equivalent of 3,300 euros gross), compared to 2,424 euros net (3,183 euros gross) in 2019.

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However, this positive development should be put into perspective, warns INSEE, which even speaks of a “

misleading dynamism

”.

According to its economists, this increase is in fact more the result of the effects of the health crisis on the structure of jobs than of individual increases granted by companies.

A classic basic effect, so…

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First of all, the jobs destroyed during the crisis “

were on average less qualified and in less remunerative sectors

”, notes INSEE, which takes up a finding already made at the global level by the International Labor Organization (ILO).

Then, the periods of partial unemployment, which are not taken into account for the calculation of the average salary, mainly concerned positions that cannot be teleworked, occupied by workers or employees, paid less than the executives who continued their remote activity.

These different structural effects mechanically contributed 1.7 points to the change in net salary

”, specifies INSEE.

In the end, the average remuneration would therefore have really increased by only 1.5% in 2020, which nevertheless represents a record.

Actual work

To better take into account the effect of health constraints on the volume of paid work, the INSEE experts, alongside their traditional analyzes formulated in full-time equivalent (EQTP), redid their calculations, this time considering the number of hours actually worked.

As a reminder, partial unemployment affected up to 8.4 million employees at the height of the crisis in April 2020. The remuneration of employees, received for their sole activity, then fell by 4% in 2020 compared to 2019. A relative drop in income, however, largely cushioned by the compensation measures put in place by the government (70% of gross remuneration up to 4.5 smics).

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Thanks to this aid, which represented 27.1 billion euros (financed by the State and Unedic) in 2020 according to the Ministry of Labor, "

the professional income of employees increased overall in 2020 by 0.8%

" , concludes INSEE.

Source: lefigaro

All life articles on 2022-04-26

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