Inflation Compensation: 5 Questions To Understand
Exceptional aid announced at the end of October by Jean Castex, the inflation allowance will soon be paid to 38 million French people. Are you wondering how and when you will receive this aid? We suggest you understand everything about this allowance in 5 questions.
1- Why this help?
The inflation allowance of €100 was announced by Prime Minister Jean Castex on October 21.
This exceptional aid is intended to help the most modest French people to cope with the rise in prices, and in particular the rise in the price of energy and fuel.
As its name indicates, this sum is intended to preserve the Purchasing power of the most vulnerable French people and the middle classes in the face of inflation at the end of 2021.
2- Who is concerned?
The inflation allowance should benefit the 38 million French people who earn less than €2000 net per month.
The payment will be made automatically (without having to apply for it), based on people's situation in October 2021.
This aid is in fact intended for all French people who earn less than 2000 € net per month, whether they are employed, self-employed, retired or receiving social assistance such as the RSA or the disabled adults' allowance.
It will be paid to all working people who meet the income requirements, including self-employed workers and job seekers. You are also entitled to it if you are currently on sick leave, maternity leave or parental leave.
This allowance is also available to recipients of the following social allowances or benefits
- the active solidarity income or RSA
- the specific solidarity allowance or ASS
- the disabled adult allowance or AAH
- the solidarity allowance for the elderly or ASPA or minimum old age pension
- supplementary disability allowance (ASI)
- the overseas solidarity income or RSO
- asbestos early retirement
- the shared child-rearing benefit
- financial assistance for social and professional integration (AFIS)
- assistance for family and social life (AVFS).
Among young people aged at least 16, this €100 aid concerns scholarship students and independent non-scholarship students who receive housing aid, but also young people looking for work or enrolled in an integration programme (apprenticeship, civic service, vocational training trainee, EPIDE volunteer).
3- What is the amount of the aid?
The inflation allowance is a one-time €100 grant to each beneficiary.
The allowance is entirely tax-free. It is not subject to any tax or social security deductions.
Its amount will not be taken into account in the means test to benefit from social aid or in the calculation of income tax.
4- How will it be paid?
For employees, the inflation allowance will be paid by the employer without the beneficiaries having to take any steps.
The amount of €100 will appear on a dedicated line of the pay slip under the wording 'inflation allowance'.
For temporary employees, this allowance will be paid by the temporary employment agency. For employees of private employers, it will be paid by the URSSAF.
For self-employed non-agricultural workers, it is the URSSAF that will pay the aid. For farmers, it will be the mutualité sociale agricole (MSA) funds that will take over this payment.
For pensioners, jobseekers and recipients of social benefits, the allowance will be paid by the fund on which they depend, i.e. their pension fund, the Caisse d'Allocations Familiales (CAF), the mutualité sociale agricole (MSA) and the Pôle Emploi for jobseekers.
5- When will it be paid?
This exceptional assistance will be paid from December 2021 for most private sector employees and self-employed persons.
Scholarship students will also receive it from the CNOUS from December 2021.
It will be paid no later than January 2022 for public employees.
For job seekers, the inflation allowance will be paid by Pôle emploi in January 2022.
It will be paid on the same date to recipients of social benefits and to all eligible young people and students (without grants).
