Background information

The law on emergency measures to protect purchasing power of 16 August 2022 and the rectifying finance law for 2022 constitute the "purchasing power package" planned by the government to fight inflation. These texts notably provide for a permanent reduction in social security contributions paid by self-employed workers whose net income is close to the minimum wage.

Content of measure

For periods starting on or after 1 January 2022, the reduction in health insurance contributions for self-employed (craftsmen, traders, the liberal professions, farm managers and their collaborating spouses) will be increased for those whose remuneration is close to or below the legal minimum wage (SMIC).

In concrete terms, the rate of contribution will become zero up to a level equivalent to 40% of the annual social security ceiling (i.e. €16,454.40). This reduction will amount to approximately €550 per year, for an income equivalent to the SMIC. It will apply to contributions due for income in 2022, with the first effects at the beginning of 2023 when self-employed workers will pay their social security contributions based on 2022 income.

Use of measure

More than 2 million self-employed (craftsmen, shopkeepers, self-employed professionals, farm managers, micro-entrepreneurs, farmers) are affected by this gain in purchasing power related to the social contribution reduction.

Target groups

Workers	Businesses	Citizens
Self-employed	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Social insurance	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	Consulted
Form	Not applicable	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

No detailed information. Employers' organisation have been consulted on the measure but it is mainly a governmental decision.

Views and reactions

No information. The measure should be welcomed by the employers' organisation organising the self-employed.

Sources

• 16 August 2022: Loi n° 2022-1158 du 16 août 2022 portant mesures d'urgence pour la protection du pouvoir d'achat (www.legifrance.gouv.fr)
• 16 August 2022: Loi n° 2022-1157 du 16 août 2022 de finances rectificative pour 2022 (www.legifrance.gouv.fr)