#EMPLOYMENT & SOCIETY
“The minimum wage is set by the state whenever it wants.” Not quite: it mostly follows automatic indexation. But on 22 October 2026, Les Échos revealed the government is studying an early increase to support purchasing power.
Published on October 22, 2026 · to be rechecked on December 31, 2026
On 22 October 2026, Les Échos revealed (exclusive) that the government is studying an early increase of the SMIC (minimum wage) to support purchasing power. At this stage nothing is decided: neither the amount, nor the date, nor the form (bringing forward automatic indexation or a genuine discretionary boost) has been made official. The framework: the SMIC was already raised 2.41% on 1 June 2026 (€12.31 gross per hour, about €1,478 net per month) through the legal mechanism alone — the SMIC is revalued mid-year as soon as prices rise at least 2% since the last increase. Beyond this automatic indexation, the government can grant a discretionary boost: there has not been one since July 2012. The issue is pushed by unions (the CFDT demands +€100) and by the cost-of-living debate, with INSEE expecting a 0.4% drop in overall purchasing power in 2026.
Who decides minimum-wage increases?
Most of it is automatic: the SMIC is revalued every 1 January, and mid-year as soon as inflation reaches +2% since the last revaluation. Beyond that, the government can grant a discretionary boost — rare (the last one was July 2012).
In other words: an “early increase” can mean two very different things: bringing forward automatic indexation, or adding a genuine discretionary boost. Until it is specified, neither the size nor the cost is known.
Four caveats that belong with the number
- This is a press report (Les Échos, exclusive, 22 October 2026): the government is “studying” it — nothing is decided, neither amount nor date.
- “Early increase” ≠ “discretionary boost”: bringing forward automatic indexation is not the same, in meaning or cost, as a rise granted above the legal minimum.
- The SMIC already rose 2.41% in June 2026; the last discretionary boost dates back to July 2012.
- A minimum-wage rise supports the purchasing power of the lowest earners, but it has a cost for employers and can weigh on employment: the classic trade-off of the debate.
Why it still matters: for minimum-wage earners: a mid-year rise would improve purchasing power, but nothing is settled. To understand the debate: distinguish automatic indexation (mechanical) from a discretionary boost (a political choice).
For you
- Did you know most minimum-wage increases are automatic, tied to inflation?
- A minimum-wage boost: mainly a purchasing-power gain, or mainly an employment risk? What do you think?
Sources: Les Échos (exclusive, 22 October 2026); info.gouv.fr (SMIC revaluation on 1 June 2026); AFP / Boursorama (context, October 2026).
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