SMIC 2025: Essential information on minimum wage levels

The inter-professional growth minimum wage, commonly known as the SMIC, occupies a central place in economic discussions in France, particularly with regard to the purchasing power of workers. With economic elections, annual revisions of the minimum wage are often scrutinized by the media and the general public. From 2025, the amount of the minimum wage is expected to stabilize, but this raises many questions about its impact on households and businesses.

In this article, we will explore the different aspects of the minimum wage for 2025, including its amount, its relevance, the differences between gross and net minimum wage, and how it is set by the authorities. We will also discuss the implications of the stagnation of the minimum wage on the French economy and the future of minimum wage workers.

As of January 1, 2025, the minimum wage remains the same

If the minimum wage is generally reevaluated every 1er January, it has not been subject to any change at the start of 2025. This situation is in fact due to an anticipated increase to 2% applied on 1er November 2024.

From January 1, 2025, the hourly minimum wage therefore remains at 11.88 euros per hour. Generally speaking, the revaluation is always based on the results of INSEE statistics.

Gross minimum wage Net minimum wage
Hourly minimum wage €11.88 €9.40
35 hour minimum wage €1,801.80 €1,426.30

The minimum wage: What is it?

The SMIC designates the minimum growth wage in France and in the overseas departments. It is governed by several articles of the Labor Code. The principles of the French SMIC are provided for by articles L3231-2 to L3231-3. The specificities concerning young employees are explained in articles R3231-1 to D3231-3.

The employer must not pay an employee below the stated amount, under penalty of a fine of 1,500 euros. Sentences may extend to the payment of damages. The salary is set by the employee and his employer, but it must also comply with the law in force in France.

Some collective agreements establish salary scales specific to companies and sectors of activity. If the amount fixed by these agreements is lower than that of the SMIC, the conventional salary is not applicable. In this case, the employer is required to pay sums as salary supplement. The amount of this supplement must make it possible to reach the minimum wage. In certain situations, the collective agreement establishes a minimum salary which is higher than the amount of the SMIC. In this case, the company pays the amount determined by the agreement.

The calculation of the minimum wage is based on the purchasing power of low-income households. The established salary concerns all economic workers, both seasonal workers and students under contract. For minors (under 18), salary scales are also determined. Several elements of remuneration are not included in the calculation of the minimum wage. This is the case, for example, for the break bonus, the maintenance bonus, the seniority bonus, the vacation bonus, increases for overtime, break times, etc.

What are the different amounts and hourly rates of the minimum wage?

Differences between gross SMIC and net SMIC

It is important to understand the difference between gross and net minimum wage. The gross minimum wage is equivalent to the amount of the salary without the deduction of contributions and tax charges. The net minimum wage displays the final amount to which the employee is paid, once he has paid all his expenses. These are divided in particular between retirement, health insurance, CRDS, CSG contributions, etc. THE Gross hourly minimum wage is therefore €11.88, while the Net hourly minimum wage is €9.40.

SMIC for an employee every 35 hours

Since January 1, 2025, the monthly minimum wage for an hourly total of 35 hours per week amounts to an amount of 1,801 euros gross, or 1,426 euros net. The SMIC for part-time employees is calculated from the number of hours worked, but it is always based on the amount of the gross monthly SMIC of 35 hours. The amount of the monthly minimum wage is calculated as follows: hourly minimum wage x number of weekly hours x 52/12.

Historically, for example, in 2021, the gross monthly amount of the SMIC was then €1,554.58. The gradual increase in salaries shows the authorities’ desire to guarantee adequate purchasing power to employees. In 2025, with a minimum wage not fluctuating, we can wonder how households will hold up with inflation still present and rising.

SMIC for a part-time employee

To obtain the monthly amount of the minimum wage for a part-time employee, you must multiply the amount of the hourly minimum wage by the number of hours worked in a week. The result obtained must then be multiplied by the number of weeks in a year (52 weeks); then divide the amount obtained by 12 (months). Here are the main amounts of the minimum wage for a part-time contract:

Gross amount Net amount
Minimum wage 8 p.m. €1,029.6 €823.68
25 hour minimum wage €1,287 €1,029.6
28 hour minimum wage €1,441.44 €1,153.15
30 hour minimum wage €1,544.4 €1,238.52

The net amount of the SMIC for a part-time employee is obtained by deducting approximately 22% of social security contributions from the gross amount. This is only an estimate since this percentage varies depending on each person’s situation.

The minimum wage abroad

If the minimum wage in mainland France and the French Overseas Territories presents a certain homogeneity, this is not the case abroad. In the European Union, for example, it is quite difficult to find similarities or connections between minimum wages. If a Bulgarian employee earns 477.04 euros, his Luxembourg counterpart earns 2,570.93 euros (gross monthly minimum wage in the second half of 2024). However, the socio-economic context within the euro zone countries makes it possible to understand the nuances between these differences.

In certain countries such as Germany, Spain, Belgium, Ireland or the Netherlands, the minimum wage is higher than 1,000 euros as in France. Although Greece has continued to record a decline of up to 12% over the last decade, the minimum wage has nevertheless increased by 6.4% to 830 euros per month.

Over the same period, other European countries, particularly those in the East, saw their minimum wage increase. Romania and Lithuania now have a respective minimum wage of 663 euros and 924 euros compared to 606 euros and 840 euros in 2023. In Switzerland, the minimum wage applied has remained disparate. Its monthly minimum wage is much higher than that of France with a gross amount of €4,450.

The revaluation of the SMIC each year

Each year there is a revaluation of the SMIC, but the period depends on several economic elements. Indexation is established according to measurements carried out on the basis of the 20% of low-income households in France. This indexing results from data published by INSEE and then makes it possible to guarantee purchasing power. The revaluation is carried out at certain times of the year depending on the situation. It normally takes place every January 1 of the year, but two contexts may require a review during the year. A proportional increase applies if an increase of 2% is noted in the consumer price index. The State, via what is called a boost, can also increase the minimum wage during the year. This government intervention can apply at any time.

Below is a summary of the revaluation of the minimum wage since 2012:

Date Gross hourly minimum wage Gross monthly minimum wage
November 2024 €11.88 €1,801.80
January 2024 €11.65 €1,766.92
May 2023 €11.52 €1,747.20
January 2023 €11.27 €1,709.00
August 2022 €11.07 €1,678.95
May 2022 €10.85 €1,645.58
January 2022 €10.57 €1,603.12
October 2021 €10.48 €1,589.47
January 2021 €10.25 €1,554.58
January 2020 €10.15 €1,539.42
January 2019 €10.03 €1,521.22
January 2018 €9.88 €1,498.41
January 2017 €9.76 €1,480.27
January 2016 €9.67 €1,466.62
January 2015 €9.61 €1,457.52
January 2014 €9.53 €1,445.38
January 2013 €9.43 €1,430.22

The objective of a revaluation is to maintain the purchasing power of families with modest incomes. The calculation is carried out at the end of each year so that the decision can come into force at the start of the following year. Over the last three years, France has recorded some exceptional revaluations. One of the latter concerns in particular the activity bonus and its enhancement.

Economic and social considerations

Maintaining the minimum wage at 11.88 euros per hour raises the question of the ability of households to cope with inflation and rising living costs. Many economists are concerned about the impact of a static minimum wage on purchasing power, especially in a fluctuating economic context. For many low-wage workers, every euro counts and cost increases in key sectors like food and housing are sending a domino effect to their budgets.

Alongside the economic effects, it is also crucial to consider the social aspect of the situation of workers paid the minimum wage. The latter represent a significant part of the working population, often employed in vital sectors such as catering, retail and industry. The reality of their daily lives deserves to be highlighted, particularly through testimonies from people confronted with this reality. Whether through forums, blogs, or social networks, it is essential to highlight these often little-heard voices.

Finally, as we move towards 2025, it is imperative to analyze public policies that could be implemented to improve the situation of minimum wage workers. Developments around the minimum wage are often linked to proposals for regulation or social support, and the role of government is undoubtedly central in this regard. Trade union organizations are campaigning for an increase in the minimum wage, arguing that it would be necessary to reflect increases in the costs of daily living.

These debates on the minimum wage are not only economic but also profoundly human. At a time when the well-being of citizens is increasingly at the center of concerns, it is more crucial than ever to broaden our understanding of the issues linked to the minimum wage in France.

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