Savings book A, SMIC, social benefits, health law… What changes on August 1st
New automatic increase in the minimum wage by 2.01%, booklet A to 2%, popular savings book to 4.6%, upgraded social benefits, upgrade of the index point for civil servants… Certain purchasing power measures in the meantime from Monday.
Sparbuch A at 2% and popular savings account at 4.6%
In mid-July, Bruno Le Maire announced that he would follow the recommendation of the governor of the Banque de France, François Villeroy de Galhau, to double the livret A rate to 2% from August 1, the highest level in almost a decade . As early as February, the payment for Sparbuch A had doubled from 0.5%, a historic low, to 1%. While this hike may seem like good news for French savers, it should not make us forget that even if the interest rate is re-rated, it will remain much lower than inflation.
The popular savings account rate (LEP) rises from 2.2% to 4.6%. ” The LEP is the most effective investment to protect against inflation. But too little is known! 15 million of our compatriots have the right to open an LEP, and less than half have one ‘ the Minister of Economic Affairs stressed.
Increase of the minimum wage by 26 euros net
Inflation accelerated further in June to 5.8% over a year, INSEE said on July 13, confirming its first estimate released in late June, leading to a new automatic reassessment of the minimum wage of 2.01% on August 1 will lead.
The minimum wage increases by 2.01% to €1,329.06 net per month for full-time employment. If we take into account the hourly minimum wage, it goes from €8.58 to €8.76.
This automatic re-rating – not an increase – is the fourth increase in the Smic in less than a year, the most recent being on May 1, up 2.65%.
Enhanced social benefits
The government has decided to increase a number of social benefits such as disability allowance, active solidarity income or family allowances by 4%. MEPs upheld this reassessment of pensions and benefits, as well as the deconjugation of Disability Allowance (AAH).
More specifically, this measure affects in particular old-age and disability pensions from the basic schemes, which were already automatically increased by 1.1% in January. Family allowances and social minima are also affected by this measure, namely the active solidarity income (RSA), the AAH, the solidarity allowance for seniors (Aspa) and scholarships based on social criteria for students. Some of these benefits had already increased by 1.8% in April.
These increases are retrospective and effective as of July 1st.
Upgrading the index point of officials
Government spokesman Olivier Véran announced in early July a 3.5% increase for all public sector staff. ” This is the largest index point increase in the public sector in 37 years. On July 1, 2022, civil servants will no longer be paid up to minimum wage ‘ he had explained.
The index point makes it possible to calculate the salary of the 5.6 million civil servants. It has been frozen since 2010 except for two increases of 0.6% in 2016 and 2017. It is indeed the largest increase since 1985 and like the benefits, this increase will be retroactive and will apply from July 1st.
Triple the Macron bonus
From August 1 to December 31, employers will be able to pay the “Macron bonus” introduced in 2019 during the Yellow Vests crisis, with the cap raised to €3,000 and €6,000 respectively in the event of an agreement or for companies under fifty employees and between 1,000 and 3,000 euros for the others. This tax-free bonus is paid by companies to workers earning up to three times the minimum wage.
A new health law
Parliament finally approved a bill on Tuesday through a final Senate vote that would make the health passport and other exceptional measures against Covid-19 effective June 1.
The draft law provides for the express lifting of the exemptions – state of emergency and management of the health crisis – from August 1st. ” In the event of a health crisis in the future, if the government needs exceptional powers, they will have to negotiate them individually with Parliament said the rapporteur LR Philippe Bas.
The only caveat is that the government may, in very specific cases, impose a negative Covid screening test when boarding towards French territory and when traveling overseas. This travel health certificate could only be unlocked for international travel if a particularly dangerous variant of Covid occurred in a country. Or for travel to overseas communities in the event of impending hospital overload.
