Matignon announced this Tuesday, Nov. 18 the establishment of the “premium business” for low wages, a device to replace from 1 January 2016 the employment premium (EPP) and the RSA activity judged to be ineffective.
The monthly payment will be subject to a double criterion: recipients will earn “about 1.2″ times the minimum wage and household income does not exceed a certain amount
Weaknesses. PEP and RSA
In the spirit of its designers, the “premium business” will correct the weaknesses of PEP and RSA . Established in 2001 under Lionel Jospin, PEP is a tax credit. First error, the payment therefore comes with a one year lag.
A 2013 report had estimated that PEP was a “lack of focus” leading to a “dusting” of public spending. “One of the weaknesses of PEP is that part was paid to persons actually belonging to wealthy households,” said Will is to Matignon.
As for the RSA activity, there is an additional small salary. RSA separate “base” and heir to the RMI for people without resources, he suffered from widespread lack of eligible people, mainly because of its complexity, according to experts.
The RSA is also part of the most subject to fraud detected by the family allowance funds (CAF) benefits.
Benefits of “premium business”
To Matignon, the prime activity will support a number of low paid, who did not benefit from Removal of the first tranche of the income tax. Number of modest workers had indeed insufficient income to pay the tax.
“It’s very complementary and it helps not to dismiss the purchasing power of households that are non-taxable “ says it does.
As for the total amount allocated to the new premium will be neighbor sums hitherto dedicated to PEP and RSA activity that is to say a little less than 4 billion per year, according Matignon
Another new. cryptosystems activity, which was reserved for more than 25 years, “premium business” will benefit less 25 years. However, the amount may vary for youth. “This is part of what will be discussed,” according to Matignon.
Horizon late 2015, early 2016
After consultation with the social partners and other integration associations between a law will be passed by the end of 2015 to implement the measure, which specify the number of beneficiaries and the reported amounts of revenues to benefit.
The home unions remains uncertain. Announcing the evolution of aid to the poor and humble workers Francois Hollande, among large plants, only the CFDT had given a good report.
The government time for discussion new premium can not see anyway the day before January 1, 2016: that removed last week in the National Assembly, the PPE will still be paid the next year for the rights acquired in 2014.