The gross hourly minimum wage (Smic) was increased twice during the year 2024, rising from €11.65 in January to €11.88 in November. This double increase, which is rare outside of periods of high inflation, reflects a mechanism of automatic indexing to consumer prices. Understanding these amounts requires looking beyond the simple displayed figure and examining what the Smic actually protects.
Gross hourly and monthly Smic: 2024 amounts compared to previous years
| Date of entry into force | Gross hourly Smic (euros) | Gross monthly Smic for 151.67 h (euros) |
|---|---|---|
| 01/01/2024 | 11.65 | 1,766.92 |
| 01/11/2024 | 11.88 | 1,801.80 |
| 01/01/2023 | 11.27 | 1,709.28 |
| 01/05/2023 | 11.52 | 1,747.20 |
| 01/01/2022 | 10.57 | 1,603.12 |
| 01/05/2022 | 10.85 | 1,645.58 |
| 01/08/2022 | 11.07 | 1,678.95 |
Between January 2022 and November 2024, the gross hourly Smic increased from €10.57 to €11.88. The gross monthly minimum wage thus rose by nearly €200 over this period of less than three years.
To find the hourly Smic amount on Aipdb, the data is updated with each official increase published in the Official Journal.
Smic increase in 2024: why two raises in the same year
The Labor Code provides for an automatic increase of the Smic on January 1 of each year, indexed to the consumer price index of households in the first quintile (the 20% most modest). A second increase occurs during the year when this price index rises by at least 2% compared to the last increase.
This mechanism explains the multiple increases observed in 2022 (three increases) and in 2023 (two increases). In 2024, the November increase reflects the persistence of sufficient inflation to trigger the automatic threshold, even if the rate of price increases was slowing down.
The government can also decide on a discretionary “boost” in addition to the automatic increase. In 2024, no boost was granted: the two increases result solely from the mechanical calculation related to inflation.
Purchasing power of the Smic against inflation since 2022
Most articles about the Smic limit themselves to listing the successive amounts. The gap between the increase in the Smic and that of prices deserves closer examination.
Since 2022, the Smic has increased by about 16.47%, while cumulative inflation is estimated at around 13.6%. This differential means that employees earning the Smic have seen their real purchasing power increase over the period, unlike the majority of employees situated above the minimum.
In contrast, average and median wages have evolved less quickly than prices during this same period. The Smic stands out as the income that has increased the most in France, ahead of pensions and average wages, according to analyses published in Capital and Ouest-France in 2026.
This observation has a direct consequence on the wage structure: the share of employees concentrated near the Smic has increased, a phenomenon known as “compression of scales.” Collective agreements whose initial levels were close to the Smic have found themselves below it after each increase, forcing branches to renegotiate.
Compression effect on wage scales
When the Smic rises mechanically and branch minima do not follow at the same pace, the gap between an employee on the Smic and an employee with several years of seniority shrinks. This phenomenon fosters a feeling of downgrading among employees just above the minimum.
Professional branches are required to maintain their conventional minima at least at the level of the Smic. When they fail to do so within a reasonable timeframe, the Ministry of Labor can initiate compliance procedures.
Gross Smic and net Smic: what the employee actually receives
The gross amount of €11.65 (January 2024) or €11.88 (November 2024) does not correspond to the sum deposited in the employee’s bank account. Employee social contributions (about one-fifth of the gross salary) are deducted.
- The net monthly Smic as of January 1, 2024, was around €1,398 for 151.67 hours worked, before income tax withheld at source
- After the November 2024 increase, the net monthly Smic rose by a few dozen additional euros
- The withholding tax further reduces the amount actually received, depending on the employee’s individual tax rate
The frequent confusion between gross and net explains part of the misunderstandings surrounding the “true” level of the Smic. The gross amount serves as a legal reference and a calculation base for employer contributions, but the net amount before tax remains the relevant figure for the employee.
The Smic 2026 and future perspectives
As of January 1, 2026, the gross hourly Smic was raised to €12.02, which corresponds to a gross monthly amount of €1,823.03. Since June 1, 2026, a new increase has set it at €12.31 gross per hour (€1,867.02 monthly).
The recent trajectory shows an acceleration of increases between 2022 and 2024, followed by a return to a more moderate pace. The gradual decrease in inflation makes the triggering of automatic increases during the year less likely.
The debate surrounding the Smic goes beyond just the question of the hourly amount. The compression of wage scales, the cost of employer contribution reductions concentrated around the Smic, and the comparison with European minimum wages are the most closely followed angles of analysis by economists. Amounts will continue to evolve each year at a minimum, but it is the gap between the Smic and the median wage that determines the real impact of these increases on the French labor market.