Smic, tank discount, issue A, health emergency … what changes on August 1st

Like every 1st of the month, many changes are pending and will come into effect this Monday. There are plans to raise the minimum wage and the salaries of civil servants and raise the rate on savings account A if inflation continues to rise. Le Parisien takes stock of what will change on August 1st.

The minimum wage is 1,329 euros net per month

This is good news for people on minimum wage. An automatic 2.01% increase in the minimum wage will come into effect on August 1, raising the hourly minimum wage from €8.58 to €8.76. In the case of full-time employment, the monthly minimum wage therefore increases from EUR 1,302.64 to EUR 1,329.06.

This is the fourth increase in the minimum wage in less than a year, the most recent being on May 1 with a 2.65% increase. In addition to the annual reassessment on January 1st, the minimum wage is automatically increased by the inflation rate of the households with the lowest incomes if this is greater than 2% compared to the index last taken into account. In one year, inflation reached 6.1% according to the latest estimates published by INSEE.

The reimbursement rate for issue A increases to 2%

The 54.9 million French who have one will see the rate of their Brochure A double on August 1st, reaching 2%, the highest level since 2011. This rate had already doubled last February, from 0, 5% – its historical low between 2019 and 2021 – by 1%. However, this increase, recommended by the governor of the Banque de France, will not compensate for the inflation of these limited savings.

It should be noted that this revaluation of the savings account A rate automatically leads to an increase in the return on the other regulated savings accounts. The Popular Savings Account (LEP), intended for the humblest, will thus experience interest rates going from 2.2% to 4.6%. The Sustainable and Solidarity Development Booklet (LDDS), which has a ceiling of 12,000 euros and helps finance the energy transition, reaches 2%.

The thaw of the index point of officials applied

After five years without an increase, the government’s gesture towards officials is finally taking hold. The decree, which increases the value of the index point of the 5.7 million civil servants by 3.5%, was published on July 8 and its effects will be visible on the payslip for the month of August. This re-evaluation will apply retrospectively and will therefore apply from July 1st.

The index point had been frozen since 2010, with two increases of 0.6% in 2016 and 2017. According to the Department of Public Services, this is the largest percentage increase in 37 years. “On July 1, 2022, no civil servant will be paid up to the minimum wage,” said government spokesman Olivier Véran.

Effective upgrading of many social benefits

When examining the Purchasing Power Act in the first reading, MPs voted to upgrade several social benefits by 4%, also retrospectively from July 1st. Affected are disability allowance, active solidarity income, but also family allowance and study allowance. This measure also targets old-age and disability pensions, which were automatically increased by 1.1% on January 1st.

Fuel discount maintained, then increased

The measure was due to end on July 31, but the National Assembly voted to extend it in the Amendment Act. The discount of 15 to 18 cents per liter of fuel introduced on April 1 to protect the French portfolio will be maintained until August 31 and then increased. In September and October it rises from 18 to 30 cents before dropping to 10 cents a liter from November to December. This boost comes on top of the 20 cent then 10 cent rebate promised by TotalEnergies starting September 1st.

The Macron bonus tripled

From August 1st to December 31st, companies can pay their employees “the Macron bonus”. This tax-free bonus can affect employees up to three times the minimum wage and ranges from 2,000 euros to 6,000 euros for profit-sharing companies. The measure also affects companies with fewer than 50 employees. For everyone else, the bonus ranges from 1,000 euros to 3,000 euros. However, the Senate still has to vote on the text.

End of the state of emergency and new health law

From August 1, with the end of the health emergency, the government can no longer decide on a curfew or enforce the return of the health card without a vote in parliament. The new health law, due to be promulgated this weekend after being confirmed by the Constitutional Council, must put an end to the extraordinary measures taken against Covid-19.