Macron premium 2021, companies react

The government has decided to renew the “Macron bonus” in 2021 (1). The announcement dates from 15 March 2021 at the Social Dialogue Conference. To improve the purchasing power of employees in this period of crisis, the exceptional bonus of €1000 introduced in 2019 is renewed. While employees have something to rejoice about, not all companies jump for joy. For good reason, many are directly affected by the consequences of the health crisis. And have consequently seen their turnover melt away like snow in the sun. Thus, many small businesses and those with the least solid cash flow decry this measure.

What is the Macron bonus?

macron covid 2021 premium

Renamed “Covid premium” by some, the device remains however similar to that of last year. Thus, it provides for the possibility for companies to pay an exceptional premium of EUR 1000 tax-free. In addition, this premium can reach € 2000 in the event that the company signs a profit-sharing agreement within the year.

Open to all employees, except those in the civil service, the Macron bonus is paid by employers. On the other hand, the exemption is valid for wages up to 3 SMIC. In addition, in the context of the health crisis, the government is asking that it be paid as a priority to workers on the second line. 17 families of trades are listed in this category. Retail trade, cleanliness, construction, road transport, public works, agri-food industries…

Beyond these instructions, the employer is free to pay the amount of his choice; as well as to choose the salary ceiling of the employees concerned. To give them time to apply the scheme, the Covid premium can be paid until the beginning of 2022. In addition, it applies retroactively to premiums paid from the time the bill was tabled. (2)

A “Covid bonus” for all employees: what reactions from business leaders?

Applicable to all employees and not on a case-by-case basis, the Macron bonus can quickly reach astronomical sums. A situation that marks the disparities between companies with large financial resources and those in difficult situations since the beginning of the crisis.

macron premium reaction companies

Thus, for large groups, the 2020 bonus has already been an opportunity to strengthen their CSR policy. This is for example the case of Danone which paid it to all employees working on site. In addition to ensuring the security of the employment contracts of 100,000 employees for the first half of 2020. On the other hand, other companies have seized the opportunity to take advantage of nice communication effects. Total thus discovered the other side of the coin when it was ordered to pay the €1500 bonus publicly promised to its employees rather than the €400 actually paid (SASCA case).

On the other hand, for the smallest companies, those with less funds, and those most affected by the crisis, the Covid premium leads to less rejoicing. For good reason, employees are often on the front line to keep the company going despite the economic situation. They suffer the degradation of the quality of work, the increase in pressure and stress… But companies do not necessarily have the means to offer them a premium, even if tax-free.

In addition, the scheme talks about a premium of €1000 but companies are not required to give this amount. Regularly, they have chosen to give less, to the extent of their means, leading in some cases to the anger of the unions. Castorama, for example, had paid a bonus of €300 to its employees, which was considered very inadequate by the staff representatives. A situation that destroys the financial effort made by companies.

What is the finding after the first Macron bonus in 2019?

According to INSEE, in 2019, the Macron premium was paid in 58% of establishments in companies with 1000 or more employees. Secondly, the smaller the companies, the fewer of them pay this premium. Those with less than 10 employees are only 17%, for example.

On the other hand, the amounts allocated by mid-caps are lower than those distributed in smaller ones. Thus, on average, companies with 50 to 249 employees paid bonuses of €361, compared to €524 for those with less than 10 employees. The average amount of the premium was then EUR 401.

macron premium purchasing power employees

At the same time, wages have increased only slightly. While they were growing in previous years, in 2019, earnings growth was reduced. Although the Macron premium should not replace other planned premiums, it is nonetheless that it has allowed a windfall effect, ultimately returning to cheaper in some of the companies concerned. (3)

In total, the amount of the exceptional premium reached EUR 2.19 billion. This sum also includes amounts paid in excess of EUR 1000 and therefore not exempt. After all, EUR 1.91 billion has been distributed up to a maximum of EUR 1000. Finally, 26% of employees in the private sector were affected (4.87 million). (4)

What are the measures in companies to improve purchasing power?

If the Macron premium restores purchasing power to employees, it weighs on the finances of companies and puts the most fragile at odds. Other mechanisms exist to enable companies to participate in improving the purchasing power of their workforce. Which ones are then less expensive.

There are, for example, tax-free overtime, which does not cost the company more; profit-sharing agreements; employee savings…

Sources

  1. The exceptional purchasing power premium,Ministry of economy and finance, updated on 30 April 2021
  2. Details on the terms of payment of the exceptional purchasing power premium in 2021,Ministry of Labour, 28 April 2021
  3. Exceptional purchasing power bonus in 2019: between wage increases and windfalls for companies,INSEE, 2 July 2020
  4. Macron premium of 1000 € 2021-2022: amount, conditions,All about my finances, May 4, 2021

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