Jean Castex announces a “average class compensation” to preserve purchasing power

100 euros aid will be paid to the 38 million French people receiving less than 2,000 euros net per month, Prime Minister Thursday night said. It must enable them to deal with rising prices, including fuels.

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A “Average class compensation” to meet the grumbling that has been around the purchasing power for several weeks. Confronted since the end of the summer to a soaring gas prices, which approach these days of historical levels, the government has chosen to take a side step and to announce a wide spectrum measure, rather than A gesture specifically targeting the issue of fuels, as originally envisaged.

This “inflation indemnity of 100 euros” will be “paid to the French winning less than 2,000 euros net per month” announced Prime Minister Jean Castex, Thursday, October 21 at the 20-hour newspaper TF1, exactly three weeks after being come to present a “tariff shield” intended, already, to contain the prices of electricity and gas. This will be a “average classes compensation”, he corrected, indicating that the ceiling chosen corresponds to the median hexagonal salary (1.6 SMIC). Paid without any requirements, it will not be submitted to social contributions or income tax.

This device will address “people who work”, “who need their car to go to work” but also “independent, unemployed job search and retirees.” A total of some 38 million people. An “automatic, fair and effective” device, assured the tenant of Matignon, who therefore targets no more motorists, but a set of households on income criteria. “85% of French people have a car,” said the Prime Minister, reminding that inflation “not only gasoline”. The amount of 100 euros was nevertheless calculated from the “extra cost for a worker who is 14,000 km per year”, or 80 euros, “plus inflation on other goods” justifies on Matignon. The check will be paid directly by the companies to their employees in December, and offset by the state, but probably in January for the agents of the public, and with the February pension for retirees.

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Since the start of the school year, the executive is confronted, in the wake of the global economic recovery following the CVIV-19 crisis, a widespread rise in prices of necessities – first and foremost Some agribusiness. It also expects a rise in certain contracts such as health complementary. According to INSEE, the price of petroleum products increased in September by almost 20% over one year, in connection with those of diesel (+ 20%) and gasoline (+ 18%), as well as the Natural gas and city (+ 39%). What to strike the government’s plans, which hoped for this end-of-year to highlight its balancing purchasing power – decline in income tax, gradual removal of the housing tax, “Macron Prime “, and partial unemployment during the pandemic.

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/Media reports.