Concerts, gas prices, unemployment, paternity leave: what changes on July 1

Increase in gas prices, lower premiums for the purchase of cars, return to standing concerts, doubling of paternity leave, compensated work stoppages for the liberal professions: here are the main changes on July 1.

Engie’s regulated sales tariff will increase by nearly 10%, mainly due to the surge in world prices for natural gas, but also because of the increasing cost of energy saving certificates, which French suppliers are required to fund to achieve goals set by the government.

This sharp increase, however, comes following a period of decline during the Covid-19 crisis. Going back to January 1, 2019, the increase is 1.1%, according to the Energy Regulatory Commission.

The transfer of the Individual Right to Training (DIF) is over. Private sector employees had until June 30 to register their DIF hours in their personal training account (CPF). According to figures from the Ministry of Labor communicated in mid-June, 6.33 million DIF meters in total had been informed by this date by their holder since 2015, when the CPF took over.

Premiums for the purchase of new electric vehicles fell by 1,000 euros. The bonus increases to 6,000 euros for cars sold for less than 45,000 euros, and to 2,000 euros for those less than 60,000 euros.

Ditto for plug-in hybrid vehicles, with aid reduced to 1,000 euros, before its planned disappearance on January 1, 2022.

Slowdown also on the heat engine side: for new vehicles, the conversion bonus will no longer be granted for the purchase of a diesel but only for gasoline bearing the Crit’Air 1 sticker. For used cars, only those emitting a maximum of 137g of CO2 per kilometer will be eligible, with some exceptions.

Standing concerts, banned since March 2020, are once again authorized, with a tonnage of 75% indoors and 100% outdoors.

For events bringing together more than 1,000 people, access is reserved for holders of a “health pass” (full vaccination against Covid-19 or negative test of less than 48 hours) and wearing a mask is no longer compulsory , but only recommended.

On the other hand, below 1,000 people, the wearing of a mask remains compulsory.

No new method of calculating unemployment benefits, the Council of State, seized by the unions, having suspended the rules that were to come into force on July 1 as part of the controversial reform. The current modalities will therefore be extended until the end of September.

But the government ensures that its ambition “remains unchanged” and aims for the reform to apply “in the coming months”.

The period of observation of the behavior of companies for the “bonus-malus” on unemployment contributions in certain sectors which are large consumers of short-term contracts will, on the other hand, begin on July 1, for application to contributions from September 2022.

As of July 1, employees will receive an indemnity of 60% of the previous gross remuneration (or approximately 72% of the net salary) against 70% until then (84% of the net salary). Employees of companies in the sectors most affected by the Covid-19 crisis and those of administratively closed companies will continue to receive compensation equal to 84% of net salary until August 31. For employers, the remainder in protected sectors, currently zero, will drop to 15% on July 1.

The duration of leave for the father (or second parent) of an unborn (or adopted) child doubles, from 14 to 28 days, of which seven are compulsory.

The three days of birth leave remain the responsibility of the employer, the remaining 25 days are compensated by Social Security. Multiple births (twins, triplets …) always give the right to seven additional days.

The cost of the measure for the family branch is estimated at 260 million euros in 2021, then 520 million in a full year.

Nearly a million liberal professionals (doctors, notaries, architects, ski instructors …) will be able to benefit from daily allowances in the event of sick leave, with only three days of waiting like private employees, instead 90 days currently for those who are entitled to it.

Depending on their income, the contribution will be between 50 and 370 euros per year, for a service that can range from 22 to 169 euros per day, within the limit of three months per stop and four stops over three years.

• VAT in e-commerce

No more exemption for small shipments: VAT will be due “on all shipments imported from third countries to the European Union, whatever their value”, according to French Customs. Previously, shipments with a value of less than 22 euros were exempt.

In addition, online platforms and marketplaces will be liable for VAT for sellers who use them, at least for part of the transactions. The reform, initiated because of the significant VAT fraud observed in e-commerce, was to come into force in January 2021 but was postponed due to the Covid-19 epidemic. Brussels anticipates 7 billion euros in tax revenue thanks to this change.

With AFP