A bill to raise the minimum wage to 1,600 euros was due to be examined in the National Assembly this Thursday, pulled from the program of the parliamentary niche of La France Insoumise (LFI) at the last minute.

Inn Their argumentThe opposition representatives put forward the effect of such an increase in “popular consumption” and evoke the fact that this concept “is perfectly compatible with the existing dynamics among our neighbors”.

To cite increases observed in recent years in Spain, Germany and the United Kingdom. What does the comparison at the European level provide?

France in the highest amounts

In the European Union, France is one of the countries with the highest wages, while still having the lowest wages. According to the prepared report Eurostat In the second quarter of 2022, the French smack in sixth place with the highest minimum wage.

At €1,646 overall, Luxembourg is behind Belgium, Ireland, the Netherlands and Germany. Important note: Some countries, such as Italy or Sweden, do not have a minimum wage.

Purchasing power to be taken into account

This crude comparison, while easy to draw, is not the most relevant When it comes to cost of living. Living on 900 euros per month does not imply a similar reality in Bulgaria or Germany.

To enable a comparison taking into account these differences in standard of living, the organization distributes the report “Purchasing Power Standard”. Strictly speaking, it is a fictitious currency where one unit allows you to buy the same thing regardless of the country.

Considering this criterion, the ranking of minimum wage in some states changes. In Slovenia, despite wages being €700 lower than in Ireland, the level of standard purchasing power is about the same between these two countries.

Portugal, on the other hand, dropped from 11th to 13th. France is the fifth highest country.

Salary differences

This variation by standard of living sheds light on the differential effects of increases in the minimum wage. As the LFI text points out, this trend has actually been observed in many European countries in recent years.

This apparent increase in the United Kingdom or Spain reduces, but does not eliminate, the advance of the French minimum wage in purchasing power. Thus, despite the minimum wage Now it’s slightly higher in the UK than in FranceEquivalent purchasing power remains weaker there than in France.

It must be remembered that these comparisons are not sufficient to establish whether the salary is adequate or not. Other factors, such as taxes, may also come into play.

For example, across the Channel, the path of increasing the minimum wage goes hand in hand with a very strong reduction policy in social assistance, recalls the world.

The trend to standardize and improve the minimum wage is still relevant: the European Parliament has recently approved legislation that provides a fair minimum wage for all countries.