He called the payment “inflation compensation” in reference to the rise in the prices of oil, energy and many goods in France in recent months and said it was the “most important decision. fair and most effective ”to take for the French.
The threshold for receiving the payment was set on the basis of the median monthly French salary. The € 100 will be exclusive of taxes and social charges and per eligible person.
Eligibility is supposed to be tied to the amount individuals receive from their main source of monthly income and the bonus will be paid by the organization paying for it, in addition to salary or pension, etc. will relate to their monthly salary for October, and getting additional “13th month” entitlements in December would have no impact on that.
It is therefore not linked to the overall household income as shown in the tax notice income tax return.
It has not yet been clarified whether people who only have foreign sources of income, such as a foreign pension, will benefit from it, as it is not possible for a foreign pension organization to add the € 100. We have asked the PMO and are awaiting an update on this.
The government insisted that taxes would not increase to pay for the program.
Read more: Diesel prices reach historic highs in France, at 1.53 € / liter on average
Speaking on 20 hours of TF1 on October 21, Mr. Castex said that the measure, which will cost the government 3.8 billion euros, would be deployed in the next four months depending on the situation of the beneficiary and not would have no impact on the objectives of reducing public deficits following the health crisis. crisis.
These are expected to reach 8.4% in 2021 and 5% of GDP in 2022.
Who is eligible for € 100 aid?
Some 38 million people in France are eligible, including employees, the self-employed, job seekers, salaried apprentices, 13 million retirees, and people living on social benefits such as allowances for disabled adults or the RSA. .
Students who have means-tested grants will benefit from them and those who are not part of their parental fiscal household will also be eligible. Apprentices can also benefit if they receive a salary.
Mr Castex said the aid was intended for “people who work, i.e. people who need their car to get to work”, as well as “retirees, unemployed, self-employed, artisans and farmers ”, who have an income of less than € 2,000 net per month.
Is financial aid a gasoline check?
The figure of 100 € was chosen because of the rise in oil prices because “it corresponds to the average additional cost of gasoline for a person who travels 14,000 kilometers per year,” said the Prime Minister’s office.
In detail, € 80 of the payment is intended to compensate for increased travel costs and the remaining € 20 for other increases in the cost of living, such as increased food prices.
Read more: France is considering gasoline vouchers: what are they, who can benefit from them?
However, the money will also be sent to people who do not have a car, and the people who receive it will be able to choose how to spend it.
This differs from the energy checks announced for nearly six million low-income households by the government earlier this year, which was a form of check that could be used only to pay gas and electricity bills.
Read more: Nearly 6 million households in France will benefit from a € 100 bonus on the energy bill
Mr. Castex said: “84% of households [in France] have at least one vehicle [but] this compensation is more than just a gasoline check.
How will people receive the money?
The funds will be transferred directly to eligible individuals.
Employees will be the first to receive it via their company in addition to their December salary, followed by civil servants with their January 2022 salary.
Retirees will receive it through the pension pension funds in February 2022.
The self-employed will receive funds through Ursaff and job seekers will receive funds from Pôle Emploi either in January or February 2022.
Some students will receive it through their Crous organization, which pays their scholarship.
Why do some say aid is unfair?
The president of the consumer site UFC-Que Choisir, Alain Bazot, criticized the single payment for being “neither immediate, nor fair, nor targeted”.
He told Franceinfo: “A measure is taken which does not take into account the actual expenses. [Some people] those who hardly ever use a car will receive € 100 – good for them. [For others] who use their car a lot, € 100 will not cover their expenses.
Mr Bazot also criticized a second measure announced by the Prime Minister, namely that the gas price freeze put in place in September would be extended until the end of 2022 to prevent prices from rising higher.
“It’s a simple way to defer payment. This is what is not said, ”said Mr. Bazot.
“It is clear that we will have to pay when the freeze ends.
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