Why some retirees who thought they qualified won’t get it

The government included retirees in the “inflation check” but only those subject to a reduced rate or average CSG. Explanation.

Thus, retirees will also be entitled to 100 euros of inflation allowance. While the government initially thought of a “fuel allowance” that would only affect assets, it eventually decided to expand it to inactive and rename it “inflation allowance”.

However, they will have to wait a little longer than the others before receiving 100 euros. If this assistance will be paid in the private sector in December, and in January in public places, then pensioners will receive it only in February.

On Friday, government spokesman Gabriel Attal said that “70% of retirees” would be affected by this assistance, which represents just under 12 million people.

If the maximum receiving allowance for employees is set at the level of a net salary of 2000 euros per month (it concerns October and November), then for retirees, the minimum should be slightly lower at the end, to 1943 euros.

For any reason? Unlike the vast majority of employees, retirees receive their pensions from several different pension funds. This usually represents several amounts of less than 2,000 euros per retiree. The danger, as we emphasize on Percy’s part, is that the pensioner receives several bonuses of €100 and this while his total pension can exceed €2,000.

To solve this problem, the executive relied on the Public Finance Directorate’s file for retirees making CSG payments at an average rate (6.60%) or at a reduced rate (3.80%). However, the average rate applies to retirees whose standard tax income does not exceed €23,147 per year for a single person, which is about €1943 per month according to Bercy. Furthermore, retirees are subject to the standard CSG rate, i.e. 8.30%. The latter should not benefit from the inflation allowance of 100 euros.

But the problem arises for the families of retired people. Because CSG is calculated on family income tax as opposed to compensation which would be personal. Some households are taxed at the full CSG rate while on average each individual who composes them can earn well under €2,000 per month.

Thus, a retired couple who earns €35,506 annually will be subject to the normal CSG rate and will not be entitled to the inflation premium. However, this amount of family income is €1,479 per month per person. Thus, we are well below the 2,000 euros per month advertised.

Aware of the problem, Percy ensures that a solution is found to solve the problem by the end of the year.