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Taxes and allowances: the changes to be expected
The National Assembly voted on December 23, 2013 the new 2014 Social Security budget in order to save nearly 3,4 billion euros compared to 2013, and above all to reduce its deficit. The new measures adopted directly impact familiesand their budget. Explanations.
Budget 2014: lowering the ceiling for the family quotient and the PAJE
The new 2014 Social Security budget provides for a number of measures, several of which concern family helpers. A drop in the family quotient is planned, as is a refocusing of the PAJE (Childcare Benefit) and the free choice of activity leave (CLCA). The ceiling of the family quotient, which is paid according to the parents’ income and the number of children in the household, drops from 2000 to 1500 euros per half share.
PAJE is means-tested to families with a child under 3 years old. Currently, it is 184 euros, but this amount will be divided by two for children born from April 1, 2014, and for couples earning more than 4 euros with two incomes or more than 000 euros with one income.
The allocation ceilings for means-tested family benefits (back-to-school allowance, childcare allowance) increase by 1,9%. Strong point: large families living below the poverty line will see their allowances increase with an increase of 50% of their family supplement, from April 1, 2014.
SMIC, RSA and VAT
Since January 1, 2014, the social incomes of the most disadvantaged have been revised upwards. First of all, the minimum inter-professional growth wage (Smic) has been increased by 1,1%. The hourly rate therefore goes from 9,43 to 9,53 euros gross. Clearly, for 35 hours of work per week, the salary is 1 euros gross. For recipients of active solidarity income (RSA), the “base” which is used as a calculation increases by 1,3%. A single person therefore receives 499,31 euros per month and if he has a dependent child, 749 euros. This revaluation will be followed by an exceptional increase on September 1, 2014, of 2%.
VAT has also been revised upwards. You will pay more for certain consumer products. The standard rate which applies to the majority of goods and services has been increased to 20%. The intermediate rate, which relates in particular to catering and school canteens, the sale of prepared food products, transport, renovation work in old housing, is raised from 7% to 10%. Finally, the reduced rate, which was to rise to 5%, remains at 5,5%. The rate applicable in Corsica goes from 8% to 10%.
Budget 2014: your daily expenses
Good news, family outings to the cinema benefit young people under the age of 14, with a single price of 4 euros per session, every day and for all films. In terms of more traditional daily expenses, such as electricity, an increase of 0,1 to 0,2% has been confirmed. Gas consumption has increased on average by 0,38%, excluding regulated tariffs tax. For Ile-de-France residents, it will also be necessary to pay 3% more on the price of public transport.. Except for people living in the outer suburbs, they will benefit from a freeze on their Navigo pass for areas up to 5. The price of the ticket per unit, meanwhile, remains at 1,70 euros. The postage stamp also increases by 3 cents. The priority stamp (red) goes from 0,63 to 0,66 euro (+ 4,8%), the “green” stamp goes from 0,58 to 0,61 euro (+ 5,2%), and the stamp “Ecopli” goes from 0,56 to 0,59 euro (+ 7,5%).
Source: Senate, Social Security Financing Law, December 23, 2013