Prime d'activité

from Wikipedia, the free encyclopedia

The Prime d'activité (German employment bonus ) is a social benefit for low-wage earners introduced on January 1, 2016 to purify the French welfare state with Art. 57 Loi Rebsamen, with which the RSA active , the previous basic security for supplementary benefits, and the integration bonus ( Prime pour l'emploi ) have been replaced.

It is a degressively graded additional benefit for marginally employed and self-employed people with insufficient income, which is paid out by the family funds ( Caisse d'Allocation familiale ) or to farmers and those employed in agriculture by the agricultural funds ( Mutualité sociale agricole ). Entitled to it has unlimited, whose net wage is 0.5 to 1.5 times the minimum wage ( SMIC ) per month. The premium melts below 0.5 times the minimum wage, this is supposed to promote regular employment. There is thus a deliberate performance gap.

Eligibility requirements

According to Art. L842-2 Code de la sécurité sociale, anyone who has reached the age of 18 and is a French citizen, is a citizen of the Union or the EEA or Switzerland or has had a residence permit with authorization to work for at least five years is eligible . Refugees, those with subsidiary protection and stateless persons are treated equally within the framework of international agreements and the Qualification Directive.

Schoolchildren, students, interns and trainees are excluded, provided their income does not exceed 78% of the net minimum wage, as well as employees who are subject to the Posting of Workers Directive , as well as parents on parental leave and employees on the sabbatical year.

Benefit level

The premium, which is adjusted annually by decree on April 1st, is calculated from a flat rate and a bonus from fractions of the minimum wage based on the income earned in the last three months. The flat rate is increased by 50% for a non-self-employed partner in the same household and by a further 30% for each child, and by a further 40% from the third child.

(Flat rate
+ individual integration bonus according to income level
+ 61% of earned income in the last trimester)
- earned income; if less than the flat rate, notional in the amount of the flat rate
- other income
- housing allowance discount

The flat rate per working household member is currently EUR 551.51.

The individual bonus begins according to Art. D843-2 Code de la sécurité sociale with the value "0" at 59 times the minimum hourly wage (€ 10.03 in 2019) and increases linearly with the applicant's income up to 120 times the minimum hourly wage, but is capped at 29.101 % of the flat rate. The bonus currently starts with the value "0" with an income of 591.77 € and theoretically grows to 611.83 € with an income of 1203.60 €, which is, however, well above the cap of 29.101% × 551.51 EUR = 160.49 €. In fact, the bonus only increases in the income range from € 591.77 to € 752.26 per month up to the aforementioned € 160.49.

The housing benefit deduction is calculated according to Art. R861-5 Code de la Sécurité Sociale from 12% or 14% of the RSA standard rate, depending on the size of the household.

evaluation

With this complicated calculation method, with the deduction of fictitious income, the maximum benefit is obtained by those who earn their earned income well below the mentioned bonus range, namely in the amount of the flat rate: They reach a premium of € 336.42. This maximum premium is far below the standard rate of € 559.74 (2019) for the unemployed. The law misses its regulatory purpose of offering an incentive to work and even punishes marginal employment with a livelihood endangerment, because the RSA basic security is no longer available from any gainful income , so that it invites illegal work.

Web links

Individual evidence

  1. Prime d'activité 2019 (fr)
  2. Details in Decree No. 2015-1709 of December 21, 2015
  3. Decree No. 2018-836 of October 3, 2018 (fr)
  4. Forfait logement (fr)