Premium of 100 euros: what conditions? For who ?

BONUS 100 EUROS. The executive announced the creation of an inflation allowance. In total, 38 million French people (employees, self-employed, civil servants, etc.) will benefit from this bonus of 100 euros.

[Mis à jour le 26 octobre 2021 à 17h05] Will you be eligible for the bonus of 100 euros? In the context of rampant inflation, the government announced the creation of an inflation compensation. The stated objective is to support the purchasing power of the middle classes, undermined by the price increases following the economic recovery after the coronavirus health crisis. Initially, the executive had worked on setting up a fuel check, to help vehicle owners cope with the sharp increase in prices at the pump. However, the site turned out to be very complicated to carry out, to such an extent that the government preferred to abandon it.

In total, 38 million French people will benefit from a bonus of 100 euros from December 2021. To take advantage of it, keep in mind that your income must not exceed 2,000 euros net per month before withholding tax (1,943 euros for retirees). The inflation allowance is paid on an individual basis. Clearly, the composition of your household, and whether or not you own a vehicle, are not taken into account to determine eligibility for the device. You do not have to take any action: the compensation will be paid directly to your bank account, by the dedicated organization according to your situation. Thus, if you are an employee, it is up to the employer to pay you this bonus of 100 euros, which you will be able to view on your payslip for December 2021. The inflation allowance is tax-exempt: you will not pay noincome tax above or contributions. Can the inflation allowance be paid several times? In several cases, it is indeed possible to receive more than 100 euros in premium:

  • If you have several employers, and your net salary does not exceed 2,000 euros net per month.
  • If you are self-employed and employed at the same time
  • You accumulate your retirement pension and a job

The government has in fact recognized possible side effects, the premium being paid by the employer. Good news ? Not really. The executive has already warned: checks by the tax administration will be carried out a posteriori. Beware therefore, if you hope to receive the inflation allowance several times, because you risk being caught up thereafter by the tax authorities. Beforehand, it will therefore be preferable to warn your employer (s) of your situation, if you do not want to find yourself in the situation of having to reimburse the inflation allowance.

Contrary to energy check, its use is therefore not limited to specific invoices. Clearly, you can therefore do what you want with the bonus of 100 euros: pay for shopping, your rent, your energy bills, your gasoline expenses … The government initially wanted to create a “fuel check”, specifically to help drivers affected by rising oil prices. However, this device turned out to be very difficult to implement. Indeed, the State services would have been forced to cross several data, such as the reference tax income of households (to establish an income ceiling making it possible to be eligible) and the criteria for owning a vehicle – and of its use.

The premium announced by the government is aimed at the middle classes. To determine eligibility for inflation compensation, the government has set a ceiling: are therefore concerned French people who earn less than 2,000 euros net per month – before application of the withholding tax – (1,943 euros per month for retirees), regardless of their status and profession. Employees, self-employed, civil servants, farmers, retirees, apprentices, students and scholarship students are in the sights of this measure, whether they are full-time or part-time.

The inflation premium is intended to be paid between December 2021 and February 2022. No precise date could be brought forward for technical reasons. Indeed, the payment will have to be ensured through several channels, depending on the beneficiary’s situation. Here is the payment schedule envisaged by the government:

  • End of December 2021: this is the date on which employees will receive their inflation compensation, directly on their payslip. Indeed, the employer will be responsible for the payment, before being compensated by the State in a second step.
  • End of January 2022 : the State will pay the inflation allowance for civil servants and the self-employed.
  • February 2022 : it is at this date that the self-employed, unemployed and retirees should receive the inflation allowance.

Asked by Les Echos, the government clarified that it is the salary before withholding tax that will be scrutinized to determine if you are eligible. “The idea is to take a typical month,” we told the daily business. The month of October should thus be retained. No risk, therefore, that a thirteenth month or an end-of-year bonus will prevent certain beneficiaries from receiving the inflation allowance.. On the payslip, it will therefore simply be necessary to check the line “net to pay before income tax “, above” net payable “.

For the self-employed, the government must look at the taxable income for the year 2020. It will pay the inflation allowance to those who have earned less than 30,000 euros, AFP added. The activity must bring in at least 500 euros per month and not exceed 2,000 euros net per month.

A noter : aid is received on an individual basis. In other words, within a couple for example, if the spouses both earn less than 2,000 euros net per month, they will both receive the inflation allowance, ie 200 euros in total. “This threshold of 2,000 euros which was decided, per person and not at the scale of the tax household, it covers more than half of working people and 70% of retirees”, detailed Gabriel Attal at the microphone of France 2.

No. The inflation allowance is not intended to become permanent. It is actually a financial boost for the middle classes. The premium will be paid in one go, between December 2021 and February 2022. The beneficiaries do not have to do anything because the payment will be automatic. For employees, it is the employer who will take care of the payment of the inflation compensation, the company being compensated by the State in a second step via a reduction in employer contributions.

For retirees, it will be the pension fund that will have to ensure the payment. The self-employed will receive aid via the Urssafs. What about the thorny case of private employers? If he pays via Cesu +, then Urssaf manages everything. If the remuneration is made via the normal Cesu, the individual employer will be informed of the amount to be paid to his employee. It will be refunded later.

For employees, the inflation allowance will be included in the gross remuneration, from the second line, below the base salary and above the gross monthly remuneration, explains the magazine’s website. Capital. As a reminder, this financial assistance is tax-exempt: it is therefore not subject to employee contributions and income tax.

Yes, retirees will benefit from the inflation allowance. However, the income condition has been clarified. You must receive a lower accumulation of pensions (from the general and supplementary scheme) at 1,943 euros per month and per person, Matignon said. Why this ceiling of 1,943 euros and not 2,000 euros net like other employees? Pension funds do not communicate pension amounts. Consequently, the government has favored the exclusion of households paying the full rate CSG (8.3%). For a retiree living alone, the accumulation of pensions must not therefore exceed 1,943 euros per month. In total, 13 million retirees should benefit from the inflation allowance, paid in February 2022.

Yes ! Beneficiaries of Solidarity labor income (RSA) are also among the beneficiaries of the inflation allowance. As a reminder, the RSA concerns people who have very few resources. The amount of the social benefit of the CAF reaches 65 euros for a single person, without housing allowance.

The beneficiaries of the AAH are also concerned, as are those of the ASS (specific solidarity allowance), and “including disabled workers in ESAT”, said the Secretary of State in charge of disabled people in a statement published October 25. “” The Government is alongside our fellow citizens with disabilities to support their purchasing power in this context of rising energy prices, “said Secretary of State Sophie Cluzel in this press release.” ‘This is a constant commitment, continued since the start of the five-year term with the revaluation of the disabled adult allowance (AAH) of 100 euros per month “.

Apprentices, scholarship students and students will be able to benefit from the inflation allowance of 100 euros. The only condition is to have less than 2,000 euros per month net monthly and to be fiscally independent. In other words, you should no longer be attached to your parents’ tax household. “I believe that this is around two-thirds of the students who will be affected,” said government spokesman, Gabriel Attal, at the microphone of France 2 on Friday morning.

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