No boost to the minimum wage on January 1

INFO LE FIGARO – The decision should be announced on December 19 to a body bringing together the social partners and the government.

According to our information, the Prime Minister, Bernard Cazeneuve, told trade unionists on Friday that he was not in favor of a boost to the minimum wage on January 1, 2017. “The government will follow the recommendations of the committee”, abounds a member of another union. This committee of experts, whose opinion is advisory, recommended, not to raise the minimum wage beyond the legal formula (and therefore to avoid any help). This formula takes into account the inflation suffered by the poorest households and the gain in purchasing power of the basic salary of workers and employees; it resulted in an increase of 0.6% on January 1, 2016 for the 1.6 million minimum wage earners in the private sector.

“The difficulty of living with 1139 euros net per month”

It is ultimately François Hollande who will decide the issue at the end of next week. And the decision should be announced on December 19 to a body bringing together the social partners and the government. But it seems that the Elysee also leans for a lack of help. If this were the case, under the Holland five-year term, the minimum wage will not only have followed the legal formula, the gesture granted in July 2012 having only been an advance on the revaluation of January 2013. This choice exasperates some trade unionists which underline “the difficulty of living with 1139 euros net per month”. But it is consistent with the policy of lowering the cost of labor chosen by the executive, symbolized by the

The group of experts also underlines the risks for employment that a boost to the minimum wage would constitute in view of “an employment situation which remains precarious, an unemployment rate which is still very high compared to pre-crisis levels and the apparent influence of the minimum wage on collective bargaining ”.