“All the companies that can should raise wages.” Although inflation accelerated again in July, to 6.1% in a year, Bruno Le Maire urged business leaders in late July to take steps to preserve the purchasing power of employees.
Because for now, the account is not there. While private sector companies have given salary increases in the first half of 2022, the increases granted are still far from offsetting inflation at this stage.
Loss of purchasing power
According to Dares, the basic monthly salary (SMB) index for all employees increased by 1% in the 2nd quarter. Over a year at the end of June, it increased by 3% (after +2.3% in the 1st quarter). As for low wages, the revaluation was slightly higher than for all employees. Thus, the base salary index for workers and employees increased by 1.3% in the 2nd quarter, and by 3.5% in one year, after +2.5% at the end of March 2022.
In other words, real wages that take inflation into account decline. Therefore, employees lose purchasing power. For the basic monthly salary of all wage earners, the drop in constant euros reached 3% (-2.9% in the tertiary sector, -3.1% in industry and -3.3% in construction). However, the fall is somewhat less for the base salary of workers and employees (-2.5%).
Source: BFM TV
