“social niches” within the crosshairs of the Court of Auditors | EUROtoday

Get real time updates directly on you device, subscribe now.

To assist buying energy, the chief has inspired, for a number of years, measures which complement the wage. Based on a system of decreased social safety contributions, this coverage has, undeniably, improved the ends of the month of many employees, however with no less than two main disadvantages: it has been a supply of inequalities between employees and has disadvantaged the welfare state contributions which might have been welcome, as proven by the Court of Auditors, in a report made public on Wednesday May 29. “Reforms are necessary”write the magistrates of rue Cambon in Paris, with a purpose to “limit revenue losses” and restore” equity “.

Overtime, protection for mutual insurance coverage membership, bonuses, support to finance journey and leisure actions, profit-sharing, and so forth. The vary of “salary supplements” is extraordinarily broad and has continued to be strengthened over the course of the yr. the latest interval, taking “unprecedented scale”based on the Court of Auditors.

In the personal sector, these further remuneration represented some 87.5 billion euros in 2022, growing the bottom wage by 13.2% on common. Companies have been inspired to make use of these instruments to pay their workers, due to a system of exemptions or exemptions from contributions (the “social niches”) which reduces the fee for them.

Read additionally | Article reserved for our subscribers Social safety: in 2024, the deficit might be 6 billion euros greater than forecast

The downside is that these dietary supplements, topic to a positive degree of social expenses, have a tendency to interchange “in part” wage will increase, topic to frequent legislation contribution charges. For “Secu”, such a phenomenon “reduces the increase in revenue (…) and contributes to its deficit », write the magistrates of rue Cambon. According to them, our social protection system was thus deprived of some 18 billion euros of resources in 2022, “i.e. 8.1 billion more than in 2018”. Such a scenario “delays the return to financial balance of Social Security”. Therefore, it’s acceptable to“mitigate the derogatory nature” of those “niches”.

Getting nearer to frequent legislation

A correction is all of the extra mandatory, based on the excessive court docket, because the rewards in query usually differ relying on the dimensions of the corporate, its area of exercise but additionally the extent of remuneration of its workers. THE “11% of employees who receive more than three times the minimum wage” thus captured 18% of the sums paid for profit-sharing, 18% for profit-sharing and 27% for firm financial savings plans.

You have 32.47% of this text left to learn. The relaxation is reserved for subscribers.