Sharp increase in wages in the private sector

In 2022, the payslips of employees in the private sector show a few extra euros. In a press release published this Friday, the Ministry of Labor announced that the basic monthly salary of all private sector employees, before social security contributions and payment of social benefits, increased at the end of June by 3% over one year.

The largest increase in the monthly base salary over one year concerns employees (3.7%) and workers (3.3%), while executives benefit from an increase of 2.3%. Overall, the tertiary sector saw the basic monthly income of its employees grow by 3.1% compared to 2.9% for the industry sector and 2.7% for construction.

Better, the basic hourly wage of workers and employees reached, at the end of June, a rate of increase of 3.5% over one year.

Inflationary context

However, the increase in wages remains well below galloping inflation which reached 6.1% over one year in July 2022, according to INSEE. This strong increase in wages, far from signifying a gain in purchasing power, is supposed to cushion the effects of the current surge in prices.

The Minister of the Economy, Bruno Le Maire, had also called on “all companies that can” to “increase their salaries”, on franceinfo on July 8, in order to jointly fight against inflation.

Salary negotiations

The wage increase follows wage negotiations at the start of the year, when inflationary pressure was already strong and companies were facing recruitment difficulties.

According to a Banque de France survey, branch negotiations for 2022 ended with increases ranging between 2.5% and 3.5%, a rate not seen since 2006 and stabilized at around 1% since 2014. Negotiations branches which are multiplying with the repeated increases in the minimum wage, which, in total, has climbed by 8% since October.

Some branches, such as the automotive sector, increased wages by 4.5% in April 2022. However, the chemical branch or even the pharmaceutical industry, which negotiated earlier in the year, benefited an increase of around 2.5%.

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