Livret A, Smic, health emergency… What changes on August 1st
The month of August will be marked in particular by the increase in the return on regulated savings, the revaluation of the Smic, pensions and several social benefits, and the end of the health emergency.
August 1st is no exception. Like every first day of the month, this Monday is marked by the entry into force of a series of measures that have a significant impact on the daily life of the French. Booklet A, minimum wage, health emergency… The most important changes at a glance.
• Livret A, LDDS, LEP… A better return for regulated savings
After a revision to 1% in February, the Livret A rate will fall to 2% on August 1, taking into account the level of inflation. This is the highest level in almost 10 years. The remuneration for the Sustainable and Solidarity Development (LDDS) booklet also increases to 2%.
For its part, the popular savings account rate (LEP) will be 4.6%, up from 2.2% previously. As a reminder, the upper limit of the livret A is set at 22,950 euros, excluding interest paid by the bank. The LDDS is 12,000 euros and the LEP 7,700 euros.
• The minimum wage is increasing
Third reassessment of the year for the minimum wage. On August 1st, the minimum wage will be automatically increased by 2.01% to account for inflation.
Specifically, the monthly minimum wage for a full-time job increases by around 26 euros to a total of 1329.66 euros. In fact, in addition to the annual revaluation on January 1st, the Smic is automatically increased throughout the year by the amount of inflation for the 20% of households with the lowest incomes, if this exceeds 2% compared to the last increase.
• The index point for officials has been upgraded
As announced by the Minister for Transformation and Civil Service a few weeks ago and provided for in the Purchasing Power Act, the index point for civil servants will be raised by 3.5% retroactively in July this August. This increase results in a monthly salary increase of 45 euros net for the lowest indices.
• Boom for pensions and benefits
Provided the Purchasing Power Act is passed, social security benefits and old-age pensions will increase by 4% in August. In practice, this increase applies retrospectively from 1 July.
In addition to pensions, this applies in particular to family allowances and social minima such as the RSA, the disability allowance (AAH) and study allowances based on social criteria.
• 18 cent fuel discount extended
The discount of 18 centimes at the petrol pump, which has been in effect since April 1st and was originally supposed to end on July 31st, was extended by decree until August 31st.
In fact, this discount lasts longer than expected. As part of the review of the amendment law, MPs voted last week to raise the price to 30 centimes per liter in September and October. In November and December, this subsidy is then to be reduced to 10 cents per liter.
• End of the health emergency
Parliament, on Tuesday 26 July 2022, by a final vote of the Senate, definitively adopted a health law ending the health emergency and ratifying the end of the extraordinary measures against Covid as of August 1st. Health measures such as house arrest or curfew, the health pass or the obligation to wear masks can therefore no longer be applied.
However, travelers over the age of 12 from abroad may be asked to test negative. This test may also be mandatory for travel between mainland France and overseas territories. No vaccination or proof of recovery from Covid-19 may be required.
• Refund of taxes and opening of online proofreading service
If the first refunds were made on July 21, some taxpayers will receive a payment from the tax authorities on August 2. Those who are eligible for refunds of tax reductions or credits for specific expenses incurred in 2021 (donations, homework, childcare, etc.) and those whose withholding taxes were higher than the final calculated tax amount throughout the last year Basis of the tax return 2021.
It should also be noted that taxpayers wishing to correct an error or omission in their return completed in the spring can do so through the online correction service, which is scheduled to open on August 3 on the tax website.
• Payment of the back-to-school grant
As every year, the back-to-school allowance will be paid out automatically (depending on need) in mid-August. In 2022, like the other benefits, its amount will be increased by 4%.
• Ban on advertising fossil fuels
According to a draft regulation resulting from the Climate and Resilience Act, advertising for fossil fuels is to be banned from August 22 (with the exception of gas, which has a one-year grace period). Specifically, a large retailer will no longer be able to promote a “fuel at cost” operation. What Michel-Edouard Leclerc has repeatedly denounced.
“It seems inappropriate to apply this measure when fuel operations are for the preservation of purchasing power and fuel prices have never been higher. If we no longer have the right to inform consumers about the implementation of the fuel operation, they will not know that they exist and will not benefit from it… they will no longer exist!”, explained in particular the head of the Leclerc centers .
• Freezing of thermal screen heaps
While rent increases are capped at 3.5% for a year, thermal screen rents will be frozen from August 25. In fact, at this point, the Climate and Resilience Act prohibits rent increases for properties rated F and G on the Energy Balance Sheet (DPE).
