The 6-euro SMIC: the economic and social impact of a drastic reduction in France’s minimum wage

The rumor of a drop in the minimum wage to 6 euros an hour recently stirred the social networks, causing great concern. Although this information is totally unfounded, it has highlighted current debates on the evolution of the minimum wage in France. Let’s take a closer look at the reality of the situation and the issues surrounding the SMIC in our country.

The “smicardization” of France: a worrying phenomenon

Prime Minister Gabriel Attal recently expressed his determination to combat the “smicardization” of France. This statement has provoked numerous reactions, with some people mistakenly seeing it as a threat to the minimum wage. In reality, it’s more a matter of concern about thegrowing number of minimum-wage earners.

The figures speak for themselves: the proportion of minimum wage earners has risen from 12% in 2021 to 14.5% in 2022. This significant increase raises questions about France’s wage structure and its economic and social implications. Here are some of the factors contributing to this trend:

  • the automatic revaluation of the SMIC in line with inflation
  • the slowness of certain professional sectors to renegotiate their minimum wage levels
  • Job creation in low-wage sectors

This “smicardization” has significant consequences for the French economy. In particular, it can create low-wage traps, where workers find it difficult to progress beyond the minimum wage, thereby curbing professional mobility and economic growth.

The current SMIC: key figures and revaluation mechanisms

Contrary to rumors, the SMIC has not been lowered to 6 euros. On the contrary, it has been raised regularly in recent years. Here are the key figures for the SMIC in force since November 1, 2024:

Type of SMIC Amount
Gross hourly SMIC 11.88 euros
Gross monthly minimum wage (151.67 hours) 1801.80 euros

The SMIC benefits from an automatic revaluation mechanism that guarantees its purchasing power against inflation. This revaluation takes place :

  1. Every year on January 1
  2. During the year if inflation exceeds 2%.

The government also has the option of granting an additional “boost” to the SMIC at any time. These mechanisms are designed to protect the lowest-paid workers against the erosion of their purchasing power.

Le SMIC à 6 euros : impacts économiques et sociaux d'une baisse drastique du salaire minimum en France

Debates and proposals on the SMIC

Although the idea of lowering the SMIC to 6 euros is pure fiction, debates exist on the evolution of the minimum wage. A number of proposals have emerged, sparking lively discussions:

De-indexing the SMIC from inflation: This idea, mooted by Renaissance deputy Marc Ferracci, aims to modify the automatic revaluation mechanism. However, it has met with strong opposition, notably from Bruno Le Maire, Minister of the Economy, who has always said he was against this measure.

Reductions in charges for employers: Measures already exist to reduce employers’ charges on low salaries, up to 1.6 SMIC. These measures are designed to encourage hiring without penalizing workers.

These debates are part of a broader reflection on the balance between employee protection and corporate competitiveness. They raise essential questions:

  • How can we guarantee a decent wage without curbing employment?
  • What are the alternatives to “smicardization” to boost low wages?
  • How can we encourage collective bargaining in professional branches?

Future prospects for the minimum wage in France

In the face of economic and social challenges, the future of France’s minimum wage raises many questions. Several avenues are being explored to improve the situation:

Strengthening collective bargaining: Encouraging professional branches to regularly upgrade their pay grids could reduce the proportion of minimum-wage earners and promote better career progression.

Training and skills upgrading: Investing in vocational training would enable workers to access better-paid jobs, thereby reducing dependence on the minimum wage.

Reflection on the wage scale: A global approach to the wage structure in France could help combat the crushing of wages from below, and restore career prospects for workers.

These considerations are part of a broader context of transformation of the labor market. The aim is to strike a balance between social protection, economic dynamism and professional fulfillment.

Ultimately, while the rumor of a 6-euro minimum wage proved unfounded, it did have the merit of reopening the debate on the future of the minimum wage in France. Future discussions will have to take account of economic realities, while preserving the dignity and purchasing power of the most modest workers.