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France : Wages, pensions, regulated tariffs: what changes on January 1, 2019

Contributions, smic, overtime, gas prices ... The first day of the year is marked by a series of novelties likely to influence the purchasing power. Up or down.
  • For modest workers
  • For employees and civil servants
  • For retirees
  • For the self-employed
  • Prices falling, others climbing ...
Resolutions, party favors, new year gifts, kisses under mistletoe, good health wishes and ... novelties for your budget! The changes affecting household spending and receipts are numerous to come into effect on January 1, 2019. An overview of what will evolve.
Among the most emblematic measures, the increase in the activity bonus, an income supplement for people who work, but earn little (whether salaried, independent or civil servants), and made conditional on resources of the home. There is talk of an increase of 90 euros for a beneficiary at the level of the smic.
This measure will also lead to an increase in the number of potential recipients, from 3.8 million to 5 million, according to the government. As the activity bonus is paid out in arrears, at the beginning of the month following the month for which it is due, the beneficiaries will see concretely the color of this increase on the amount received at the beginning of February 2019.
Private and public employees will, in 2019, have their overtime exempted from income tax, within certain limits, and from employee contributions (CSG, CRDS and employer contributions will still be due). The hourly wage level will also be raised by 1.5% to 10.03 euros gross. Result: the monthly amount will reach 1,521.22 euros gross, against 1,498.47 euros today.
Less pleasing for purchasing power: increases in old-age contributions are planned. It will be +0.27 points for civil servants. And those of a large part of the employees will rise because of the merger of the Agirc and Arrco plans, which involves a redesign of the overall structure of the supplementary pension contributions. To remember: the level of the increase will depend on the status (executive or not) and salary, and the contributions of some employees will, on the contrary, decrease (poorly paid executives).

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