After an agreement between senators and deputies during the joint joint committee this Monday, August 1, the bill establishing “emergency measures for the protection of purchasing power” should be voted definitively this Wednesday, August 3 by the Assembly national then by the Senate.
Here are the main measures that will be implemented:
♦ Pensions and minimum social benefits increased by 4%
After an initial indexation to inflation of 1.1% in January 2022, basic retirement pensions will experience a further increase of 4%, i.e. an increase of 5.1% over the whole of 2022. For an average pension of €1,400, this represents €56 per month of increase.
Without waiting for January 2023, the government decided to increase the social minima by 4% as well, after an increase of 1.8% last April. The active solidarity income (RSA) will now amount to €598.54 – against €575.52 previously – and the allowance for disabled adults at €956.65, instead of €919.86. As with pensions, the measure will be retroactive from 1is July.
♦ Deconjugation of the allowance for disabled adults (AAH)
From 1is October 2023, the income of the spouses of people with disabilities will no longer be taken into account to calculate their allowance. The measure, passed almost unanimously by the two chambers of Parliament, was considered a real “historic victory”.
♦ The Macron bonus made permanent and increased
Set up in 2019, the exceptional bonus, known as the “Macron bonus”, is now permanent and increased until December 31, 2023. For salaries below three times the minimum wage, companies will be able to pay up to 6,000 euros in premium to their employees, exempt from income tax, social and employer contributions. For employees paid beyond this ceiling, the premium will only be exempt from employee contributions.
This measure will concern the entire private sector – and no longer just companies with fewer than 50 employees, as had been proposed by the senators.
♦ Capping rents at 3.5%
The new legislation plans to limit the increase in rents to a maximum of 3.5% from October 15 for one year. Personalized housing aid (APL) will also be increased by 3.5%.
After an addition by the Senate supported by the government, this cap also extends to commercial rents of small and medium-sized enterprises (SMEs), at the same height and for the same duration.
♦ Relief from employer contributions on overtime
For overtime worked after 1is October 2023 in companies with 20 to 249 employees, employer contributions will be reduced by 50 centimes per hour. Supported by LR parliamentarians, the measure also won over the Minister of the Economy Bruno Le Maire, declaring himself “favorable” to it.
♦ Simplified cancellation for online subscriptions
Finally, the law establishes a simplification of the termination procedures for digital subscriptions. An online cancellation device will be mandatory from 2023, via a “cancellation” button for all daily contracts such as telephone, gas, electricity, streaming subscriptions… This “button” will however only be required for sites offering a subscription. on line. And in the event of a deceptive commercial practice, the sanctions will be reinforced.