Macron's €1,000 bonus: Who are the new employees involved?

After a Growth Minimum Wage (SMIC) increase, more employees are now affected by “Macron Prime”.

This exceptional bonus to purchasing power called “Prime Minister Macron” was introduced at the end of 2018 as part of the “Emergency Economic and Social Measures Act” in the wake of the Yellow Vests movement.

Active as of 2019, and finally renewed in 2020, and then on July 20 under the amended Finance Act 2021 published in the Official Gazette.

While this bonus relates exclusively to employees who earn less than three times the minimum wage in the twelve months before it is paid, it can now be taken by more workers, thanks to the 2.2% increase in the minimum wage on Oct. 2021.

And so, as a site public serviceEmployees receiving a maximum of €4,768.41, up from the previous €4,631.74, are now eligible for the Purchasing Power Bonus.

It is the business owner who decides

On the other hand, it should be noted that this bonus, also called “Pepa”, is awarded based on the desire of the employer, who decides to apply it or not. The bonus will become effective on June 1, 2022 and must be paid no later than March 31, 2022.

In addition, if it is less than 1,000 euros, it is exempt from taxes, contributions or social contributions. However, in the case of signing a profit-sharing agreement, or for “second-line” workers, especially participants during the health crisis, the limit is 2,000 euros.

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