The minimum wage reassessed in the face of inflation, the rates of the Livret A and the Livret d’épargne populaire (LEP) are increasing, but also the end of the health emergency: detailed review of the main measures that will come into force in France on May 1stah Aug 2022.
High inflation will trigger a new automatic minimum income growth wage (smic) increase on May 1ah Aug by 2.01%. Specifically, the minimum wage for a full-time employee will drop from EUR 1,302.64 to EUR 1,329.06 net. The hourly rate increases from 8.58 euros to 8.76 euros. This is the fourth increase in the minimum wage in less than a year, after 2.65% in May.
Beyond the annual reassessment in January, the minimum wage is automatically increased throughout the year by the amount of inflation (calculated for the 20% of households with the lowest incomes) if it exceeds 2% compared to the last increase.
- The Livret A tariff is doubled
The rate of Livret A, the savings product used by most French people, is doubled from 1% to 2%. This is the second increase this year, following an initial doubling of the rate on June 1ah February up 0.5%, a historic low of 1%.
This increase, proposed by the governor of the Banque de France on July 14th and immediately accepted by the government, is also justified by the rise in prices observed in recent months, which reached 6.1% over a year in July.
The rate of the people’s savings account, which is reserved for people with modest incomes (maximum 20,296 euros per year for a single person), is between 2.2% and 4.6%. It had not reached a comparable rate since 1998 (4.5%).
- The re-evaluated back-to-school allowance
The school start grant (ARS) will be paid out in the medium term at the end of August to families with at least one school-age child aged 6 to 18. It is part of the benefits that are increased by 4% as part of the bill “purchasing power” to deal with inflation.
For the beginning of the 2022 school year, the amount is EUR 376.98 per child aged 6 to 10, EUR 397.78 per child aged 11 to 14 and EUR 411.56 per child aged 15 to 18 .
- end of the health emergency
After more than two years of pandemic, the health emergency ends at the beginning of August, an extraordinary legal framework imposed in view of the crisis. There will hardly be any concrete consequences as the main restrictions have already been lifted. Only two measures are on the agenda: maintaining the monitoring that makes it possible to know the number of cases or hospitalizations, as well as the possibility of imposing a detection test for SARS-CoV-2, the result of which is negative for travelers who leave is to or from France or overseas departments and territories.
Also, the scientific advice created at the beginning of the pandemic is disappearing. It is replaced by a Health Risk Surveillance and Anticipation Committee created by a decree published in Official Newspaper Sunday 31 July. The names of its members will be “will be communicated in the next few days”announced the office of Health Minister François Braun.
This committee, responsible for monitoring “Health risks from human and animal infectious agents, environmental and food contaminants, and climate change”should in particular “Make recommendations when screening reveals a health risk”.
- The extended tank discount
That “fuel discount” 15 centimes per liter of petrol or diesel, excluding taxes, has been in effect since 1 January 2019ah April, has been extended to August 31.
For now, this bonus is expected to be increased further in September before being phased out by the end of 2022.