an expert report recommends not increasing the minimum wage

The group of experts recommends sticking to the automatic increase linked to inflation, i.e. around 1.4%, which would represent almost 20 additional euros net per month for employees on the minimum wage. They believe that an additional boost would weaken an already slowed job market.

Like every year, the group of experts on the minimum wage submitted its annual report to the government and social partners on Thursday, in which it makes recommendations on the evolution of the minimum wage and which Franceinfo obtained. Unsurprisingly, these experts recommend this year not to give a boost to the minimum wage, not to go beyond the automatic revaluation which takes into account inflation in particular.

Taking into account current inflation data, this automatic revaluation should be “around 1.4%”. According to franceinfo calculations, this would then represent an increase of around 20 euros net per month. The monthly minimum wage would then reach around 1,426.30 euros net for full time. Although they do not recommend an additional boost, the experts point out that this revaluation still represents an increase in purchasing power, because it will be greater than the increase in prices, expected around “1%”.

To justify their recommendation, the experts mention in their report the “slowdown in the labor market”with the rise in the unemployment rate. The job market is currently suffering from low growth and economic uncertainty, specifies a source close to the matter. Another reason for explanation mentioned by the report, the “persistent wage compression” and the “relatively high level of the minimum wage compared to the median wage”.

The group of experts considers that companies would not be able to keep up if labor costs increased. He believes that too strong an increase in the minimum wage also risks penalizing those who are paid around the minimum wage, because their remuneration would be caught up by the legal minimum, which increases faster than other salaries. Indeed, the minimum wage, which saw nine increases between 2021 and 2024, has “progressed by 17% since 2021, while negotiated salaries in the branches and effective base salaries increased by around 15%”.

The experts also recommend in their report to modify the timetable for the revaluation of the minimum wage. Currently, they publish their report at the end of December, which then serves as a basis for discussions with the social partners. The government then awaits the final inflation figures, in mid-December, and at that time announces the level of the increase in the minimum wage on January 1st. However, this falls right in the middle of mandatory annual negotiations. To allow companies and unions to prepare for these salary negotiations and anticipate the increase in the minimum wage, experts believe that it would be preferable to bring forward the announcement of the increase to September.