With the increase in the minimum wage, the exceptional purchasing power premium concerns more employees

Following the increase in the minimum growth wage (Smic) from 2.2% to 1%^er October 2021, employees earning up to €4,768.41, up from €4,631.74, are now eligible for the purchasing power premium, known as the Macron or PEPA premium.

As a reminder, the employee's monthly remuneration must be less than 3 times the minimum growth wage (Smic) in the 12 months preceding the payment of the premium.

This premium shall be exempt from tax, contributions and social contributions, up to €1,000, limit to €2,000 in the case of the signature of an incentive agreement or for employees of the second line whether revaluation measures are initiated. It is also excluded from the calculation of the activity premium and for the award of the disabled adult allowance (AAH).

In order to qualify for social and tax exemptions, the premium must satisfy the following conditions:

• it benefits employees linked to the company by an employment contract, temporary workers made available to the company or public officials of a public industrial and commercial establishment (EPIC) or a public administrative establishment (EPA) when it employs private-law staff (such as regional health agencies (RHAs)) on the date of its payment;
• it benefits employees whose remuneration is less than 3 times the amount of the Smic (over the 12 months preceding its payment);
• it shall be paid between 1^er June 2021 and March 31, 2022;
• it is not a substitute for an increase in remuneration or a premium provided for in a wage agreement, employment contract or a practice in force in the company or public establishment;
• the premium shall not exceed €1,000 in companies which have not signed an incentive agreement;
• the premium shall not exceed €2,000 in companies which have signed an incentive arrangement or in companies with fewer than 50 employees or for employees of the second line (if measures are taken to upgrade their jobs. These are people who work in commerce or services and who, because of the nature of their work, are exposed to a direct health risk - but not in the "front line" (e.g. cashiers, cleaning staff, garbage collectors or delivery agents).