All French people would be affected by this salary increase.
This is a speech heard or held by many employees: working no longer allows you to live, but to survive. Inflation has been felt in recent months with increases in bills, shopping carts or even gas tanks, increases faster than salaries. The finances of many French people are contracting month by month.
What if, tomorrow, your net salary increased by 100 euros per month? Without doing overtime, without having to negotiate a raise with your boss and without it costing your employer a single euro more! For most French people, this increase would be more than welcome to loosen their budgetary belt a little. A utopia? Not so sure. It could even happen in the very near future thanks to a new law.
To improve salaries, a technical proposal could be implemented in a few weeks, with a direct impact on the amount that will arrive in your bank account: introduce a progressive scale on the CSG according to the salary. Have we lost you? That’s normal. This is one of the many lines on your pay slip between your gross salary and your net salary. Automatically, every month, 9.2%* of your gross salary is deducted to finance health insurance, unemployment insurance or other social protection schemes.
The idea is to modify this system so that a specific rate applies depending on the salary. The principle is simple: the less you earn, the less you contribute; the more you earn, the more you contribute. The possible new rates would be 0%, 3.8%, 5.5%, 7.5%, 9.2%, 11.2% and 13.2%, with a calculation formula by bracket, similar to that of income tax.
Concretely, for an employee who currently earns 1850 euros net per month after taxes, this would increase their net salary to 1959 euros, or an additional 109 euros that would arrive each month in your bank account. For an employee earning the minimum wage, their net salary would increase by 97.50 euros. The monthly increase would be 112 euros for a person currently earning 2200 euros net.
This idea is being defended by the candidates of the New Popular Front in the legislative elections. In its program, the left-wing union promised to implement the measure by autumn 2024. To do this, however, it must obtain an absolute majority in the National Assembly.
According to the figures of economists working for the NFP, this progressive scale, correlated with a new income tax scale, would bring in 5.5 billion euros more per year into the state coffers.
*More precisely, the CSG rate is applied to the following amount: (gross salary – 1.75% for professional expenses) + employer contribution “Disability insurance” and “Supplementary health insurance”.