In focus: Macron’s response to the Yellow Vests

Published on : 09/01/2019 09 January Jan 2019

After a great deal of public debate and calls for reform, French president Emmanuel Macron announced on December 10 a package of measures in favor of purchasing power. The Government drafted a law to ensure its implementation.

The law itself was voted on December 24 and quickly entered into force.
Below are some of the key points of the law.
Exceptional “purchasing power” bonus
This optional bonus, paid by the employer, is totally tax free (taxes, Social Security, CSG-CRDS), up to 1,000 euros, for employees who earn less than three times the legal minimum wage and who meet certain conditions. See our special news flash commentary here.
Overtime hours will now benefit from a tax exemption, in addition to a withdrawal of contributions.
Exceptional revaluation of the “prime d’activité” (a bonus given to low income individuals)
This is another measure to increase purchasing power. Individuals at minimum wage will receive an increase of roughly 90 EUR, says the government.
The law also provides for a revision of the CSG (a specific contribution) for roughly 70% of French pensioners. 
Specifically, for the people concerned, the CSG goes from 8.3% to 6.6% in 2019.


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