He called her “Inflation compensation”, or “Middle class allowance”. On the TF1 TV set, Thursday, October 21, Jean Castex unveiled the payment of a bonus to some 38 million French people faced in particular with the rise in energy and fuel prices.
Here is how this exceptional bonus is structured, “A decision that is intended to be the fairest, the most effective” in relation to the situation, justified the Prime Minister.
What is the “middle class allowance”?
It is a single, automatic and individual premium of 100 euros. It will therefore be paid only once and without any action being necessary on the part of the beneficiary. The French “Will have nothing to do, it will be automatic”, explained Mr. Castex. “We will go through different circuits. We will detail all this in the days to come “, he assured.
The bonus is granted to each French person who earns less than 2,000 euros net per month, whether they have a car or not. Being individualized, this “Inflation compensation” will not be calculated on the tax household.
She aims “People who work”, but also “Retirees, the unemployed, the self-employed, craftsmen, farmers”, described the Prime Minister. Apprentices, scholarship students and fiscally independent students earning less than 2,000 euros will also be concerned, Matignon said in the evening after final arbitrations.
When will it be paid?
The bonus will be paid from the end of December by employers to private sector employees, and between January and February for other categories.
Mr. Castex clarified that civil servants would receive this allowance in January 2022 “For questions of piping”, before continuing: “It will be in January and maybe a little bit later for others, I am thinking in particular of retirees. We will do our best to make it happen quickly. “
Why such a premium?
The announced compensation is intended to respond to concerns about soaring energy and fuel prices, and overall purchasing power. Prices at the pump rose another 2 euro cents last week, reaching historic highs 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 for motorists, – a ” Gaz factory “, according to Mr. Castex -, or a reduction in taxes which would cost ” very expensive “. According to Bercy, a drop of 1 euro cent in fuel taxes represents half a billion euros in lost revenue for the State. An additional disadvantage, it did not allow a means test to be set.
“It’s not just gasoline” that increases, “There is a question of inflation”, judge the Prime Minister. “The middle class allowance” is attributed to six times more people than the energy voucher, which is distributed to nearly six million poorest households.
And despite this additional expenditure of 3.8 billion euros, which will be drawn from the general budget of the State, the Prime Minister assured that France would keep its commitments in terms of public deficit.