The activity allowance: everything you need to know

It was one of President Macron's flagship measures to respond to the social emergency created by the Gilets jaunes crisis: a person paid at the SMIC will see their monthly income increase by €100.

How?

Via the activity allowance, in large part. This allowance is already benefiting nearly 5 million households in 2019, and the number is set to continue rising. The prime d'activité is a benefit that offers modest workers the opportunity to receive a bonus to supplement their income.

The amount of the benefit depends on the applicant's resources and family situation . The aim is to encourage many inactive people to take up or return to work. It also supplements the resources of low-income workers to boost their purchasing power.

In 2019, the amount of the activity allowance will be increased. Find out all you need to know about this increasingly attractive social benefit.

How do I qualify for the activity allowance?

The conditions for receiving the "prime d'activité" are defined by law, and apply to all workers, whether salaried or not, as well as to students receiving professional income. To receive the "prime d'activité", you must be resident in France for at least 6 months of the year.

If a person is required to live abroad for between 3 and 6 months a year, the bonus is paid only for the months spent in France.

Receipt of the "prime d'activité" also depends on your level of income. A person must not earn more than 1.5 times the SMIC, i.e. €1,723 net per month. In the case of a couple, the spouse's income is also taken into account.

It is possible to combine the "prime d'activité" with other social benefits, such as APL. However, these APLs are included in your income and can therefore reduce the amount of the prime d'activité.

How much does it cost?

The amount is variable, and depends directly on your total declared income, as well as the income of any spouse.

Income from professional activity and replacement income (unemployment benefits, sick pay, pensions, etc.) are taken into account. The calculation of the activity bonus also includes other benefits, social assistance, disability pensions, military pensions or work accident pensions received from the State.

The bonus is calculated on the basis of your income tax returns for the last 3 months for students, employees and apprentices.

There is a fixed amount of €551.51 for a single person, which is then adjusted according to all the above parameters.

For apprentices and students, proof of income in excess of 78% of the SMIC, i.e. €1,168 gross per month, is required. Internship bonuses are not taken into account. For self-employed workers, sales in excess of €82,200 are required for shopkeepers, €32,900 for self-employed professionals and €32,900 for craftsmen. 

It is also possible to increase the amount if you are a single parent with at least 1 dependent child, or if you are pregnant.

Following Emmanuel Macron's December 10, 2018 speech, the activity bonus will be raised by €90 and the maximum amount of the individual bonus is now €160.49.

The income ceiling applicable to benefit from the scheme is raised from 1.2 SMIC to 1.5 SMIC.

In 2019, the activity bonus will increase by €90 per month, and is extended to anyone earning less than 1.5 times the SMIC!

How do I apply?

Applications can be submitted online, via the Caisse des Allocations Familiales website. Before applying, you should carry out a simulation to check your eligibility.

The CAF has created a simulator which you can access here. The online application procedure is not compulsory. You can also go to your local CAF branch to apply.

Once your application has been received and reviewed, you will receive a reply from the authorities specifying the final amount of your assistance, as well as the date of the first payment.

If you already receive the RSA, you don't need to do a thing.

The "prime d'activité" (activity bonus) is becoming increasingly popular with the most modest members of the French population, and has recently become the focus of the government's efforts to boost purchasing power.

The increase in the amount of the bonus and the more flexible conditions for receiving it are leading more and more French people to apply to the CAF.