MIL OSI Translation. Government of the Republic of France statements from English to French –
Agnès Buzyn and Muriel Pénicaud presented in the Council of Ministers the draft law implementing the measures presented by the President of the Republic to respond to the economic and social emergency.
The “Draft law on economic and social emergency measures“is an implementation of the announcements made by Emmanuel Macron, on December 10, during his” Address to the Nation. “This text, prepared in record time, was presented in cabinet on the morning of December 19 to be tabled in the National Assembly the same day.
Parliamentarians will be able to discuss this bill as early as December 20, and in particular the four articles dealing with the main measures.
The exceptional bonus
Article 1 allows companies to pay, for paid employees up to € 3,600 / month, an exceptional bonus that will be exempt, up to € 1,000, of all social charges and income tax. It will have to be paid before March 31, 2019. 4 to 5 million employees are concerned, out of the 17 million employees in France.
Clause 2 allows all employees and public servants to pay neither employee contributions nor income taxes on overtime as of January 1, 2019.
The measure initially planned is therefore advanced in time (January instead of September) and expanded (tax exemption in addition to the exemption of contributions).
The purchasing power gain depends on the remuneration and the level of taxation of the employees. For example, an employee paid 1,500 euros net and performing a number of overtime hours equal to the observed average, will obtain a gain of annual purchasing power of about 500 euros: 235 euros for the social component (exemption of employee contributions) ) and 265 euros for the tax component (exemption from income tax).
CSG (General Social Contribution)
Article 3 reinstates as from 1 January 2019 the CSG rate to 6.6% for half of the pensioners concerned in 2018 by the increase of CSG by 1.7 points. In the end, 70% of pensioners will no longer be affected in 2019 by the increase in CSG last year. This measure concerns 3.8 million households, or 5 million pensioners.
The pensioners concerned are those whose reference tax income is less than 22,580 euros (34,636 euros for a couple) or an income corresponding to a pension of 2,000 euros for a single pensioner and without other income. For a pensioner receiving a pension of 1,600 euros gross, the gain in purchasing power over the year will be 325 €.
Given the necessary implementation deadlines, the CSG will continue to be debited at a rate of 8.3% in the first months of 2019. The overpayment will be reimbursed as soon as the measure is put in place, at most late 1 July 2019.
The activity bonus
Article 4 provides that the Government submits to Parliament a report on the exceptional revaluation of the activity bonus on 1 January 2019. This is a regulatory provision that complements the bill. The activity bonus will be accelerated and expanded for the most modest workers.
The number of households eligible for the activity premium will rise from 3.8 million to 5 million by 5 February.
All single employees without children will receive 100 euros more up to 1,560 euros net of income. An unmarried mother with a child up to 2,000 euros net will also receive 100 euros.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.