On Wednesday, the government published a press release which reiterates the terms of payment of the inflation compensation, announced on October 21 by the Prime Minister. This financial assistance should make it possible to fight against the rise in prices.
We now know more about the inflation compensation, this financial assistance of 100 euros announced on October 21, 2021 by Prime Minister Jean Castex. In a long press release, the government returned in detail to the device. Eligibility, administrative procedure, payment schedule … La Dépêche du Midi takes a closer look at this new financial boost.
What is the inflation allowance?
According to the government’s terms, the inflation allowance is “exceptional aid in the amount of 100 euros”, which aims, among other things, to “preserve the purchasing power of the French” in a context of inflation (2.6% increase in one year, over the month of October). This device is primarily intended for “the most vulnerable” households and the middle classes and aims to fight against rising prices, which moreover is fuel. This financial assistance is not subject to any tax deduction whatsoever.
Who is eligible?
In practice, nearly 38 million French people are affected by this financial assistance. In its press release, the executive indicates that the inflation allowance will be paid to “people whose activity or replacement income is less than 2,000 euros net per month”.
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The government lists among others the employees of the private sector: they will be 14 million to be able to benefit from it. Also included are retirees (12 million). We also find public officials, self-employed workers, job seekers, people with disabilities and beneficiaries of social benefits, scholarship students and those without activity receiving housing assistance, young people with an activity. professional, apprentices as well as young people in a path of support towards employment and beneficiaries of social minima (RSA, ASS, AAH, RSO, PreParE, ASI), including disabled workers in establishments and support services through work (ESAT).
How will this compensation be paid?
The inflation allowance of 100 euros will be repaid in one go and will not be subject to any deduction. Organizations and employers are responsible for paying this social assistance, depending on your status. The payment must be made automatically on your payslip or from the services to which you are the subject.
- If you are employee, it is your employer who must pay you the inflation allowance.
- If you are a self employed, it is the Urssaf which will be responsible for giving you the indemnity.
- If you are retirement, your pension fund must pay you this financial assistance.
- If you are student, the CROUS must credit you for this assistance.
- If you are Jobseeker, Pole Emploi must pay you the inflation allowance.
- If you are farmer, it is up to the Mutualité Sociale Agricole (MSA) funds to ensure payment.
- If you benefit from social minima, the family allowance fund (CAF) will be responsible for giving you the allowance.
Your employer or the organization on which you depend will be reimbursed “via a payment aid on the contributions and social contributions paid to URSSAF on their social declaration following the payment of the allowance”, states the government.
When will this aid be paid?
Overall, the payment of the inflation compensation will be spread over three months, between December 2021 and February 2022. Here again, the payment date depends on your situation.
- December 2021 : private sector employees, self-employed workers, and scholarship students.
- January 2022 : State agents and operators, local authority agents, hospital agents, non-grant students receiving housing assistance, job seekers, recipients of social benefits and invalids.
- February 2022 : retirees
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