Livret A, Minimum wage reassessment… What will change on August 1, 2022
A number of anti-inflation measures will come into effect in August, including raising the minimum wage.
Wage rate for issue A at 2%, minimum wage at 1,329 euros net per month or even the end of the health emergency: that will change from August 1st.
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The minimum wage is 1329 euros net per month
Starting August 1st, a new automatic 2.01% upgrade of the Smic will occur. The net hourly minimum wage increases from 8.58 euros to 8.76 euros and for a full-time employee the net monthly minimum wage increases from 1302.64 euros to 1329.06 euros. This is the fourth reassessment of the minimum wage in less than a year, with the most recent dated May 1, 2022.
Issue A climbs to its highest level since 2011
The rate of reimbursement for the livret A rises to 2% on August 1, in line with the recommendations of the governor of the Banque de France. The savings account rate hit its highest level since 2011, when it was 2.5%, before falling to an all-time low of 0.5% between 2019 and 2021. However, this new rate will not compensate for inflation, measured by INSEE at 5.8%. over a year in France in June.
The popular savings account rate (LEP) ranges from 2.2% to 4.6%. In addition, a new campaign by the general government of public finances will soon be launched to email directly to French people who can benefit from opening a popular savings account, the government website announces.
+3.5% on civil servants’ payroll
The salaries of the 5.7 million civil servants rose 3.5% on July 1, according to announcements by the Ministry of Transformation and Civil Service. This increase in the index point will be visible retrospectively for the month just ended on the payslip for the month of August.
Effective upgrading of social minima
A few days ago, the National Assembly voted to increase the value of many social benefits by 4% as of July 1, also here retrospectively when examining the Purchasing Power Act in the first reading. An amendment that needs to be confirmed in Parliament. Old-age pensions should also increase by the same amount, this change was decided by MEPs. This measure enables a pensioner who receives a monthly pension of 1200 euros to “around 45 euros per month if we take into account 4% inflation“Said Olivier Dussopt on RTL at the end of May.
Payment of the back-to-school allowance
As every year, the back-to-school allowance will be paid out in the second half of August. The amount of funding this year is 376.98 euros for children between the ages of 6 and 10, 397.78 euros for children between the ages of 11 and 14 and 411.56 euros for children between the ages of 15 and 18.
Fuels: Extension of the discount from 15 to 18 cents per liter
A decree published in the Official Gazette on July 24 extends the discount of 15 to 18 cents per liter on the fuel price until August 31, 2022. Launched on April 1, 2022, it aims to curb the impact of rising fuel prices at the pump. Including VAT, this reduction is 18 cents or 9 euros for a full 50 liters in mainland France. This discount applies to all fuels, both for private individuals and for traders.
End of the health emergency and dissolution of the Scientific Council
In addition, August 2022 marks the end of the health emergency, as confirmed by Parliament a few days ago. The health passport is therefore disappearing, along with the other exceptional measures introduced in the fight against Covid-19. The Scientific Council also says goodbye. Founded in mid-March 2020 at the beginning of the epidemic, in two years it will have organized almost 300 meetings and issued more than 80 opinions.
On July 19, the Scientific Council published a final statement in which it formulated recommendations and hypotheses on possible future scenarios. It encourages continued screening and vaccination policy through reminders. After this dissolution, aHealth Risk Surveillance and Anticipation Committee‘, should take the sequel.
SEE ALSO – The governor of the Banque de France announces a new increase in the Livret A tariff on August 1st