The guaranteed minimum growth wage (Smic) is the legal minimum hourly wage in Metropolitan France and in the overseas departments and in the territorial authority of Saint-Pierre and Miquelon. It was established by law on January 2nd, 1970 and replaced the Smig (minimum guaranteed inter-professional wage) created in 1950.
A wage at least equal to the Smic is paid to every employee aged 18 or older in the private sector. The employees of the public sector working on private conditions benefit also of this minimum.
A reduced rate of the Smic can be used for: the apprentices and the young employees in training contract ("contrat de professionalisation"), according to their age and to the duration of the contract; the employees under 18 with less than 6 months of professional practice in the same branch of activity. A 10% reduction can be also practised for an employee aged between 17 and 18 years and a reduction of 20% when the young employee is less than 17 years old. The employees whose working schedule is not controllable (as Sales representatives) are excluded of the Smic.
The value of the SMIC was currently revised evry July 1st until 2009, then every January 1st since 2010.
Since 2013 (decree n°2013-123 of February 7th, 2013), the SMIC (Guaranteed minimum wage) is revalued as follows:
- Every January 1st, in line with the evolution in the consumer price index except tobacco of the households that belong to the lowest equivalized disposable income quintile, to which is added half of the growth in the purchasing power of the average hourly wage of the workers and the employees (with possibility for the government to decide on an additional appreciation);
- In the course of the year when this consumer price index reaches a level corresponding to an increase of at least 2% compared with the index of the immediately previous SMIC.
Until 2012, the Smic was revalued according to the evolution of the consumer price index (IPC) except tobacco of the urban households the head of which is worker or employed, increased by half of the growth of the purchasing power of Basic hourly wage of a worker (SHBO).