The mechanism of determining the French minimum wage in the correction or support
reports Mehr News Agency , the French minimum wage, known as” Salaire Minimum Interprofessionnel de Croissance (SMIC), has long been praised as a guard for workers’ purchasing power. This wage is set annually to keep in mind with inflation and wages and ensure that employees do not lag behind economic conditions with minimum wages. However, while this system provides stability, it has also raised questions about economic competitiveness and wage stagnation.
The SMIC, which was introduced in Year 2, was a response to increasing concerns about income inequality. Unlike some countries where the minimum wage increase has become a political battlefield, France has adopted an automated adjustment mechanism. Each year, wage increase is calculated based on inflation and the average wage growth of workers, which results in a predictable increase in incomes. In some years, the government has decided to apply an additional increase to improve workers’ income conditions.
However, despite these support, SMIC has become a ceiling for it instead of being a basis for wage growth. The increasing number of French workers receive a minimum wage, which has raised concerns about recession. The government has attempted to offset this by reducing the share of social insurance for low -income jobs to encourage employers to be more hired. But critics believe that this policy merely stabilizes low wages and does not help to promote workers to higher jobs.
While French minimum wage policies have supported low-income workers, there have also been discussions about their impact on the economy. Some economists warn that frequent wage rise may eliminate low -income jobs, especially in periods of economic uncertainty. Businesses, especially small companies, are challenged by attracting labor costs, which can make it difficult to create new job opportunities.
In recent years, the discussion of SMIC correction has intensified. Some have suggested that the system be changed to a formula -based approach to consider wider economic factors such as productivity growth, not merely relying on inflation and wage indicators. Proponents of this approach believe that this will create a more fair and sustainable system that supports both workers and in line with economic realities.
While France is facing a period of economic uncertainty, the future of SMIC remains a key issue. While the system has provided decades of stability, its limitations are increasingly revealing. Whether through targeted reforms or through a major change, the main challenge for policymakers will be to ensure that the minimum wage continues to its main goal, supporting workers, without disrupting economic growth. = “https://otaghiranonline.ir/section/iccima/2″>
