Prime D'activité

The prime d'activité (English: ''employment bonus'') is a French social security benefit created on August 17, 2015, relative to labor relations and employment. Stemming from the fusion of the Revenu de solidarité active (RSA) and the Prime pour l'emploi (PPE), the ''prime d'activité'' supports the occupation and buying power of low-income workers, rectifying certain problems posed by both the RSA and the PPE. As of January 1, 2016, the ''prime d'activité'' is issued by Caisse d'allocations familiales and Mutualité sociale agricole ( fr).

Creation and codification

The ''prime d'activité'' was created by the August 17 law #2015-994 relative to labour relations and employment:, title IV, and took effect on January 1, 2016. It is codified in book 8 of the social security code, specifically L 841-1 to L 847-1, R 842-1 to R 848-1 and D 843-1 to D 848-5. The provisions were finalised by simple decree ( fr) #2015-1710 on the 21 December 2015 and was published in the Journal officiel de la République française on the 22 December 2016.

Objectives and motivations of the ''prime d'activité''

The creation of the ''prime d'activité'' is the result of several reports on two previous insufficient provisions regarding labor and low-income support, namely the RSA and the PPE.

The RSA, whose goal was to promote re-entry into the workforce without fear of earning less than unemployment benefits, was only used by a third of potential beneficiaries due to administrative complexities, fear of overcompensation (and thus repayment), and social stigma. Furthermore, in all but rare cases, the RSA was not issued to those under 25.

The PPE, a tax credit supplementing low-wage incomes, however, reached between 95% and 97% of potential beneficiaries, but allocated relatively low amounts (a monthly average of 33€ in 2014) with a one-year discrepancy in relation to employment.

The ''prime d'activité'' corrects these drawbacks. It is unconnected to the RSA and is issued monthly at a "fixed" three-month rate irrespective of any changes in employment, reducing the incidence of overcompensation, and can be claimed at age 18 with a simplified administrative process. The average amount allocated in 2015 was per month.

The objective remains to encourage re-entry into the workforce, even into low-paying positions, and supplementing low incomes.

Conditions

All earnings cited here are legally defined in relation to SMIC ( fr) and are shown in monthly net in practice. On January 1, the net monthly SMIC was 1,130€.

* General conditions: Be a national of the European Economic Area (EEA) and reside in France. For homeless individuals, selecting a place of residence at a Centre communal d'action sociale ( fr) or other certified organisation.
*Conditions specific to the ''prime d'activité'': be on a regular stay in France for at least 5 years if foreign to the EEA.
*Conditions for employees: earn between € and per month (79.5% to 133% of SMIC).
*Conditions for craftspersons and self-employed individuals: earn between and per month (79.5% and 242.6% of SMIC).
*Conditions for storekeepers: earn less than in revenue per month (the actual income of the shopkeeper being only a fraction of the monthly revenue).
*Conditions for students and apprentices: earn at least per month (78% of SMIC).
*Conditions for those earning less than net per month (79.5% of SMIC): Proof of no other occupation (neither student nor apprentice).

Amount

The ''prime d'activité'' is inversely proportional to earnings.

Example for a single childless earner in 2017

* net per month (25% of SMIC): bonus of per month.
* net per month (100% of SMIC): bonus of per month.
* net per month (130% of SMIC): bonus of per month.

References

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Social security in France
2015 in France
Law of France