In response to rising inflation, the French and UK governments have instituted various measures that affect employers.
France
During the presidential campaign, Macron’s Government promised to increase purchasing power. On August 18, 2022, a new law with several measures intended to mitigate the consequences of inflation entered into force. Outlined below are the main parts of the employment law measures of this “emergency law for the protection of the purchasing power.”
Renewal and increase of the purchasing power bonus as of July 1, 2022
Whereas the purchasing power bonus (also called the “Macron bonus”) was first introduced as an exceptional bonus, which could be paid during limited periods only, the law introduces the possibility of granting this bonus each year in one or several instalments. This bonus is now referred to as the “value-sharing bonus.”
To be exempted from certain social security contributions, the bonus must not exceed 3,000 per employee and per year. This cap has been increased to 6,000 for:
The law has also reduced the exemptions from tax contributions and some employee-borne social security contributions (CSG/CRDS) applicable to this bonus. Said exemptions will apply only until December 31, 2023, and to employees who earn less than three times...
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