Jean Castex announces a “middle class allowance” to preserve purchasing power

A “Middle class allowance” to respond to the grumbling that has been brewing for several weeks around purchasing power. Faced since the end of the summer with soaring gasoline prices, which are approaching historic levels these days, the government has chosen to step aside and announce a broad-spectrum measure, rather than ‘a gesture specifically targeting the issue of fuels, as initially envisaged.

This “Inflation allowance of 100 euros” will be ” paid to French people earning less than 2,000 euros net per month ” announced the Prime Minister Jean Castex, Thursday, October 21 to the 8 pm newspaper of TF1, exactly three weeks after coming to present a “tariff shield” intended, already, to contain the prices of electricity and gas. It will be a “Middle class allowance”, he corrected, indicating that the ceiling retained corresponds to the median hexagonal salary (1.6 minimum wage). Paid without any action being required, it will not be subject to social security contributions or income tax.

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This device will be aimed at “Working people”, “who need their car to go to work” but also to “Self-employed, unemployed looking for work and retired people. “ In all, some 38 million people. A device “Automatic, fair and efficient”, assured the tenant of Matignon, who therefore no longer targets only motorists, but a set of households based on income criteria. “ 85% of French people have a car ”, insisted the Prime Minister, recalling that inflation does not concern “Not just gasoline”. The amount of 100 euros was nevertheless calculated from the “Additional cost for a worker who travels 14,000 km per year”, or 80 euros, “Plus inflation on other goods” we justify to Matignon. The check will be paid directly by companies to their employees in December, and offset by the state, but probably in January for public officials, and with the February pension for retirees.

Multiplication of announcements

Since the start of the school year, the executive has been faced, in the wake of the global economic recovery following the Covid-19 crisis, with a general increase in the prices of basic necessities – primarily energy but also certain agri-foodstuffs. . He also expects a rise in certain contracts such as complementary health insurance. According to INSEE, the prices of petroleum products thus increased in September by nearly 20% over one year, in line with those of diesel (+ 20%) and gasoline (+ 18%), as well as natural and city gas (+ 39%). What hit the plans of the government, which hoped at the end of the year to highlight its record in terms of purchasing power – lower income tax, gradual abolition of housing tax, “Macron premium », And partial unemployment during the pandemic.

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