Activity bonus: how much will you lose following the rise in the minimum wage?

In January 2023, the French will experience an increase in the minimum wage. Will there be an impact on the amount of the activity bonus?

Every year, the government realizes an increase in the minimum interprofessional growth wage (minimum wage). Indeed, every 1ᵉʳˢ January, the amount of the minimum wage is revalued. And this, according to the inflation of the past year. Thereby, January 1, 2023 , the revaluation will take place in order to counter the harmful effects that inflation may have had on French households during the year. It should be noted that this year inflation has reached unprecedented levels. Thus, this revaluation of the minimum wage is long awaited by the most modest French households. It must be said that this is good news for more than 2 million French employees. However, the beneficiaries of the activity bonus are worried. Will this increase have an impact on the amount of the premium paid by the CAF? We'll explaine everything here !

An increase in the minimum wage in 2023

The minimum interprofessional growth wage (SMIC) undergoes a revaluation every year. And this, in order to counter the effects of inflation and to check that the employees with the SMIC receive an acceptable amount vis-à-vis the cost of living. This year, as you know, inflation has reached unprecedented levels. Thus, the revaluation of January 1, 2023 seems long awaited by nearly 2 million French employees and especially of the most modest French households. Thus, the government expects increase the SMIC to reach €1,353 net per month . It must be said that this represents an increase of €24 per month. As you can imagine, employees are not going to complain about any increase in their salary. However, some French people are worried. They want to know if this increase will have an impact on the amount of the activity bonus.

It must be said that the increase in the minimum wage, although it benefits many French people , could have a detrimental impact on other things . And this, such as other aid paid by the government. The amount of certain allowances depends on the minimum wage. Thus, for many, if the minimum wage increases, the aid received decreases. This is the case of the activity bonus. Indeed, the amount of this benefit varies according to the amount of the minimum interprofessional salary for growth. The payment of this premium is established according to several income criteria . Thus, the payment of this aid can be withdrawn or reduced if the income exceeds a certain amount. A news that therefore worries many French people. Especially during these difficult times with the economic crisis on the territory.

The activity bonus

The activity bonus is a benefit that was intended to replace the activity RSA and the employment bonus. Created in 2015, this bonus helps support the activity and purchasing power of employees who only receive their salary. minimum interprofessional growth rate (SMIC). Many French people receive this minimum wage and therefore benefit from external aid paid by CAF. This is the case with this activity bonus. Indeed, it is poured, means-tested , by the CAF or the MSA . It should then be known that all workers, salaried or not, trainees, students, civil servants or even on leave can benefit from it. Gold, some French people worry after the announcement of the salary increase minimum interprofessional growth (minimum wage). And this, since they are afraid that this increase will have an impact on the amount of the activity bonus.

The calculation of the activity bonus is done as follows. (Lump sum (€551.51 for a single person)) + ((0.61 * professional income) + bonus) – (professional income + other resources). Of course, you don't have to do this calculation yourself. The Family Allowance Fund is responsible for carrying out this calculation for you with the information you provide. However, if you want to know the potential amount of this payment, you can then go to the CAF website. There is a possible simulation to do this calculation. Note that the payment of the activity bonus takes place quarterly . As a result, it takes into account the income received by the beneficiary during the last three months.

The impact on the activity bonus in 2023

It should be noted that the majority of French people who receive the minimum wage also receive the activity bonus. However, as you know, this minimum wage will be increased on January 1, 2023. It should be noted that the activity bonus, for its part, should not be increased. According to the sayings, the calculation method will not change either. Thus, the amount of the bonus will undoubtedly undergo changes from January 2023. The concern that persists then constitutes that of a possible reduction in the amount of the activity bonus received by employees who are paid at the minimum wage. And this, because their salary will increase. Indeed, if the reduction in the amount of the activity bonus is greater than the increase in the SMIC. So, these people might then receive less money . And this, despite the fact that their salary has increased.

Our colleagues from Thank you for the info therefore tried to make simulations. And this, in order to see if the amount of the activity bonus will fluctuate after the revaluation of the SMIC. The objective remains to compare the total paid for a person receiving the minimum wage in December 2022 with that which will be received in 2023 after the revaluation . The difference is therefore between €1,329 net per month and €1,353 net per month. After a quick calculation, our colleagues calculated that there would be a 15 euro difference between the income affected each month after the revaluation. Which then represents a gain of 15 euros after January 1, 2023. It would therefore seem that in all cases, employees and beneficiaries of the activity bonus are doing better from January 1, 2023.

Source : Thank you for the info