Reduction in social contributions : how it will happen ?

AD. Campaign promise of Emmanuel Macron, the reduction in social contributions paid by employees, coupled with the increase of the CSG has just been confirmed for Bercy, who said the calendar.
The holidays have barely ended and already the government is working on social issues. While the social partners were received, from 22 to 25 August, by the ministry of Labour, in view of the orders in on the act work, Bercy just to provide more clarification on the modalities for the implementation of reductions in social security contributions. Emmanuel Macron, announced amendments on the payslip wishing to restore purchasing power to the French, but especially to make savings to the State. He was then in question until January 1, 2018, the CSG increases by 1.7 percentage points and that at the same time, the contributions for unemployment and sickness paid by the employees, should be removed.


But the calendar has to be changed slightly. In a press release, dated August 23, 2017, the department of the Action and of the public Accounts indicates that these reductions in contributions will be made finally by two time. “As of January 1, a gain of purchasing power will benefit the employees and the self-employed. 21 millions of French people will see their net income is enhanced. Their gain will be amplified by a second downward contributions to the fall of 2018“. A partial maintenance contributions that will benefit, therefore, to the coffers of the State since the increase of the CSG will enter into force at the beginning of 2018.


Give back the 7 billion euros of purchasing power of the assets


Concretely, “3,15 points in employee contribution will disappear as well in 2018, “says the ministry. He believes that’given the increase of CSG by 1.7 percentage points, which supports the measure, the net gain of purchasing power will be 1.45 % for all employees, that is 260 € per year for a worker earning the SMIC.


Finally, the office of Gérald Darmanin says that “the entirety of measures in 2018, as well as their schedule will be detailed at the time of the submission of draft finance law and financing of social Security“. With this transfer of social security contributions to the CSG, the government intends to “give back the 7 billion euros of purchasing power of the assets.”

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