From days of mobilization to long debates, the pension reform is causing upheaval in our society and the French are contesting these controversial decisions by the government. However, during the debate on the pension reform held in the Social Affairs Committee of the National Assembly, the deputies voted in favor of a lowering of the CSG rate. Good news at the heart of anger, which will benefit some retirees. Will you be affected by this drop in the CSG?
Created by the finance law and included in the social security code, the generalized social contribution (CSG) concerns all the income of people residing in France. It is deducted from income from activities such as salaries or bonuses, replacement income such as retirement pensions or income from assets. In most cases, the CSG is deducted at source, excluding social and family benefits. It thus serves to diversify the method of financing social protection and its yield is estimated at around 100 billion euros each year.
When you are retired, the CSG rate varies according to your income. For 2023, for example, all the thresholds were reviewed on January 1 and raised by 1.6%. This percentage is calculated according to the consumer prices, recorded for the penultimate year, namely 2021. This year, the different rates therefore vary from 0 to 8.3%, according to your income. Their evolution can thus sign a CSG rate reassessed upwards or downwards. The recent vote of the deputies, during the social affairs commission of the National Assembly, will undoubtedly come to redistribute the cards on the rates in force.
While the study of the bill on pension reform should not be able to end in time, the deputies voted in favor of an amendment on the rate of the CSG. Filed by Pierre Dharréville, deputy of the Democratic and Republican left, it aims to remove the CSG rate of 8.3% applied to certain retirees.
Established in 2018 by the government of Edouard Philippe, this rate was until then applied to all retirees whose reference income exceeded 23,564 euros per year, or 1,963 euros gross annually. In the context of this amendment, we are not talking about a complete exemption from the CSG, but rather a return to the classic rate, also called the “median rate”, set at 6.3%.
As Capital reports, Pierre Dharréville wanted to relieve retirees living alone, whose reference income exceeds 23,564 euros per year. He thus asked the commission to “agree to reconsider a measure that the Prime Minister at the time had considered a mistake”. Indeed, this decision taken by the government of Edouard Philippe had greatly fueled the anger of the Yellow Vests in 2018, which had forced the executive to review its copy on pensions between 1200 and 2000 euros per month.
Even if the deputies voted for this measure, the rapporteur of the text Stéphanie Rist, of the Renaissance movement, issued an unfavorable opinion on it. If the amendment is adopted, it is not certain that the text will in turn be adopted. After a visit to the National Assembly, he will have to convince a majority which remains opposed to this proposal and it is not, for the moment, recorded that this reduction will be effective soon. Future debates will be able to decide on this question between now and the study of the text, scheduled in the Hemicycle from February 6.