Smic, social assistance, livret A, taxes: the increases to be expected to compensate for inflation – BFMTV

Inflation keeps rising month after month. With, for consequence, revaluations attenudes more important than in recent years.

Inflation is growing month after month. In its latest estimate, published this Tuesday, November 30, theINSEE assesses the level of consumer price increases over twelve months at 2.8%. And we can no longer speak of catching up. Since in November 2020, the average price level of goods and services was almost comparable to those at the end of 2019.

However, we cannot speak of a general price waltz. This return of inflation is mainly attributable to the increase in the price of fuels, natural gas and electricity. The average price of energy increased by 21.6% compared to last year. This is considerable and it has a direct impact on the purchasing power of the French, who can hardly revise this expenditure item downwards.

New increase in the minimum wage, without a boost

This high inflation should still lead to an increase in wages. It will undoubtedly be the first argument invoked by union representatives during wage negotiations both at branch level and in the companies themselves. Not to mention the automatic increase in the minimum wage.

Already revised by 2.2% on October 1, due to the exceptionally high level of inflation, the minimum wage will be readjusted again on January 1. The group of experts advising the government on this subject recommends an increase of 0.5% or 0.6%, enough to erase inflation, without giving an additional boost. If the government is satisfied with an increase of 0.6%, the gross monthly minimum wage (for 35 hours of work per week) will reach 1,599.40 euros, that is to say 60 euros more than in 2020.

The rate of the livret A between 0.7% and 0.8%

With soaring inflation, further revaluations are still expected. If the fate of retirement pensions has already been sealed, the same is not true for RSA and family allowances, the amount of which is also indexed to price increases. Their increase will take place on April 1, 2022. It is therefore too early to know what the scale of this revaluation will be, which will depend on the development of inflation between now and then.

On the other hand, we will be fixed rather quickly on the revaluation of the rate of the livret A from February 1. The rather complicated calculation rule takes into account half inflation and half the level of rates on the bond markets. Unless we are surprised, we should therefore go from 0.5% to a remuneration that would be between 0.7% and 0.8%. This means that savers will lose a little less money by letting him sleep on a livret A or his little brother, the LDDS.

Income tax scale revised upwards

Finally, taxpayers who pay income tax will know within a few weeks whether the salary increases or taxable bonuses obtained this year will eventually result in an increase in their payments to the tax authorities. Inflation is in fact taken into account in the evolution of the income tax scale.

The threshold from which we “change the bracket” is revalued each year, to prevent an increase entirely eaten away by inflation translating into a tax increase.