Wage increases offset some of the inflation

According to data from the Statistics Directorate of the Ministry of Labor (Dares), in the second quarter, the SMB index rose by 4.6 percent, while the SHBOE index rose by 5.2 percent year-over-year. In both cases, these increases exceeded the inflation rate (4.5 percent). 

The SMB (Basic Monthly Salary) and the SHBOE (Basic Hourly Wage for Workers and Employees) are key indicators in the field of compensation in France. They reflect gross pay excluding social security contributions, but do not include bonuses or overtime pay. 

The SMB is calculated by multiplying the gross hourly wage by the number of hours worked by the employee in a month (151.67 hours for a full-time employee).
These indices are based on two fundamental principles: gender pay equity and pay equity for work of equal value. They are measured in private-sector companies with 10 or more employees, excluding the agricultural sector.
 

According to data from the Statistics Directorate of the Ministry of Labor (Dares), in the second quarter, the SMB index rose 4.6%, while the SHBOE index increased 5.2% year-over-year. 

In both cases, these increases exceeded inflation (4.5%). A trend of catching up—which had been absent for two years—was more pronounced among blue-collar workers and white-collar employees. In constant euros, the SHBOE rose by 0.6% year-over-year, while the SMB increased by only 0.1%.
 

Furthermore, the indices varied by socio-professional category:
• Manual laborers: +5.2%
• Clerical workers: +4.9%
• Mid-level professionals: +4.3%
• Executives: +3.7%
Disparities are also evident across economic sectors:
• Construction: +4.1%
• Services: +4.6%
• Manufacturing: +4.7%
 

During the first quarter of 2023, the SHBOE rose by 1.9% in private-sector companies (excluding agriculture) with 10 or more employees. This increase was 2.2% in manufacturing, 1.9% in the service sector, and 1.7% in construction. Year-over-year, the SHBOE rose by 5.2% as of the end of March 2023, following a 4.5% increase as of the end of December 2022.
Meanwhile, the SMB for all employees rose by 1.9% during the first quarter of 2023. Year-over-year, it rose by 4.7% following a 3.9% increase in the previous quarter.
 

These trends must be viewed in the context of inflation, which rose by 5.7% between the end of March 2022 and the end of March 2023. In constant euros, the SHBOE thus declined by 0.5% year-over-year, while the SMB fell by 1.0%.