Minimum wage, inflation, participation outside large companies… In his general policy speech this Tuesday, the new Prime Minister, Michel Barnier, mentioned some ideas for improving the purchasing power of the French. His goal? That work “pays”, he argues.
The minimum wage revalued earlier
In his speech, the Prime Minister notably announced the increase in the minimum wage by 2% on November 1, “in anticipation of the date of January 1.” On the subject of the minimum wage, Michel Barnier deplored that there remain “in our country professional sectors in which the minimums are lower than the minimum wage”. “This is not acceptable, and it will have to be the subject of rapid negotiations. The State will see to it,” he assured.
With the increase in the minimum wage announced by Michel Barnier, the monthly net minimum wage would thus be increased to around 1,426 euros net, compared to 1,398.70 euros currently. In France, the minimum wage is the only salary indexed to inflation. Each year it benefits from a mechanical increase on January 1st and revaluations also occur during the year as soon as inflation exceeds 2%.
Exemptions, maximum at the minimum wage level, introduced to support employment, are today accused by certain economists of slowing down wage progression by creating “low wage traps”. For this reason, Michel Barnier intends to review the contribution reduction system.
Participation and profit-sharing extended to other companies
“We will relaunch participation, profit-sharing and employee shareholding, and not only in large companies,” the Prime Minister also mentioned. Currently, some of these schemes are reserved for companies with a workforce of 50 or more employees.
A savings account for industry
Michel Barnier also proposed the creation of a “new savings account dedicated to industry” to “support” “industrial dynamics” in France. “Our country must and wants to amplify its industrial ambition,” he declared.
There is currently the A booklet, the funds from which are used to finance social housing and urban renewal, and the sustainable and inclusive development booklet (LDDS). The funds saved in LDDS “allow banks to grant sustainable development loans at attractive rates intended to finance energy renovation work in collective or individual housing which serves as a main, secondary or rental home,” recalled the Ministry of the Economy.
A proposed law aimed to direct a portion of Livret A savings towards the defense industry. Approved in the Senate in March, it had not been examined in the National Assembly before the dissolution. The outgoing government had also launched a “future climate savings plan”, a savings product dedicated to the youngest, accessible since July 1.
Actions on inflation?
Without mentioning a precise measure concerning inflation, Michel Barnier nevertheless mentioned the need to pass on its reduction “on electricity bills and at the supermarket checkout”.