The Prime Minister announced on Thursday evening the payment of a premium of 100 euros to some 38 million French, in response to the rise in energy prices and fuels. Who is concerned ? When will it be paid? Overview of this government measure.
Le Monde with AFP
He called it “Inflation allowance”, or “Average class compensation”. On the TF1 JT plateau, Thursday, October 21, Jean Castex unveiled the payment of a premium to some 38 million French people facing the rise in energy prices and fuels.
This is how this exceptional bonus is articulated, “a decision that is the most accurate, the most effective” in relation to the situation, justified the Prime Minister.
What’s “average class compensation”?
This is a single, automatic and individual premium of 100 euros. It will therefore be paid once and without any approach necessary from the beneficiary. The French “will have nothing to do, it will be automatic,” said Castex. “We will go through different circuits. We will detail all that the days to come,” he said.
who is concerned?
The premium is granted to each Frenchman who earns less than 2,000 euros net per month, whether they have a car or not. Being individualized, this “inflation indemnity” will not be calculated on the tax house.
It aims “the people who work”, but also “retirees, the unemployed, the self-employed, the craftsmen, the farmers,” described the Prime Minister. Will also be concerned apprentices, stock market students and financial fiscally affecting less than 2,000 euros, Matignon said in the evening after subsequent arbitrations.
when will be- he paid?
The premium will be paid from the end of December by employers to private employees, and between January and February for the other categories.
m. Castex said public service employees would receive this allowance in January 2022 “for piping issues”, before chaining: “It will be in January and maybe a little later for others, I Think of retirees especially. We will do the best for it to happen quickly. “
why such a premium?
Announced indemnity wants to respond to concerns about the outbreak of energy prices, fuels, and overall on purchasing power. Pump prices have further increased by 2 euro cents last week, reaching historically high levels at 1.56 euro per liter for diesel on average, and 1,62 euro for unleaded gasoline.
The government preferred the option of an individualized premium rather than a check to motorists, – a “gas plant”, according to Mr Castex -, or a drop in taxes that would cost “very expensive”. According to Bercy, a decrease of 1 century of fuel taxes represents half a billion euros of lack to win for the state. Additionally disadvantage, it did not put a resource condition.
“It’s not just gasoline” that increases, “there is a question of inflation,” the Prime Minister judges. “The average class compensation” is attributed to six times more people than the energy check, which is distributed to nearly six million the most modest households.
And despite this additional expense of 3.8 billion euros, which will be drawn from the general budget of the State, the Prime Minister assured that France would hold its commitments in terms of public deficit.