Saturday, August 9, 2014

Amending Budget for Social Security in 2014, OJ – cBanque.com

Amending Budget for Social Security in 2014, OJ – cBanque.com

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cBanque with AFP – Today at 10:18 – Comment

Keywords:. Budget Act, and decree text, Health

Finance Act Amending Social Security for 2014, containing measures of “pact responsibility “was published Saturday in the Official Journal (OJ), amputated provisions in favor of the low paid, censored by the Constitutional Council.

The text details the first reductions in employer contributions on low wages for EUR 5.5 billion in 2015, planned as part of the pact of responsibility for companies. These cuts should be accompanied by a decrease in health insurance contributions and pension insurance paid by the lowest-paid workers but the Constitutional Council censured Wednesday this measure on the principle of “equality”.

The pact responsibility has lost most of its “solidarity” component pledge given to the left by Francois Hollande after the rout of Municipal. A blow to the executive who promised compensatory measures in the fall.

The text published in OJ also includes a reduction in the contribution of solidarity societies (C3S), caused by most businesses. This contribution, which should be completed by 2017, is reduced from 2015 in general and even eliminated for small and medium enterprises.

The freezing of pensions above 1,200 euros until October 2015 is also endorsed. In practice, this amounts to a freeze of 18 months since the date of annual pension increases had already been shifted this year from April to October on the occasion of the pension reform. A total of 8 million people, half of pensioners are concerned, for an average effort of 11 euros per month.

The provision for the reduction of contributions to individual employers some jobs at home also censored by the Sages, disappears. The government should reintroduce it in the budget of the social security system in the fall of 2015.

The amended Finance Act (FAA), validated for its part, without modification, by the Wise, was also published on Saturday . It provides four billion euros in savings, including $ 1.6 billion in the state budget to reduce the deficit to 3.8% of GDP.

cBanque with AFP – reproduction prohibited

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