"Amélie de Montchalin Responds to Interview with Emmanuel Macron on Increasing Wages"
Are French Workers Fed Up with Low Net Pay? Macron and Montchalin Respectfully Disagree
Emmanuel Macron recently opened up about France's social model during an interview on TF1 on May 13, hinting at potential changes, including the return of a social VAT. Meanwhile, the Minister for Public Accounts, Amélie de Montchalin, is advocating for a solution that would leave the French earning more.
The French Social Model: Time for a Rework?
In the interview, Macron voiced his concerns about the French social model, stating that it relies too heavily on work. He suggested making adjustments, starting with easing employer and employee social security contributions. These high contributions cause a significant disparity between the gross salary paid by the employer and the net salary received by the employee.
Montchalin echoed Macron's sentiments during an interview with RMC, expressing her concern about the widening gap between gross and net wages. "It's not about freebies, it's about the French earning a better living," she said. Health, retirement, and family policies, parts of the French social model that make the nation proud, account for half of national expenditure.
Fiscally Challenged France
Montchalin explained that the issue stems from the fact that 80 years ago, funding was provided by a larger and younger population. However, today, France boasts fewer workers compared to retirees, causing expenses to outpace funding. As a result, "work must pay more," Montchalin advocated.
This financial strain affects employers who see soaring charges and are disincentivized to hire. Montchalin wants to initiate a discussion about how to control spending and share the burden. If a social VAT is part of the solution, she maintains there are "many other solutions" at play.
Increasing Net Salary: The Government's Priority
The government's primary goal is to bring the gross salary closer to the net salary. Montchalin pointed out that if a young person earning the minimum wage receives an extra EUR 100 on their payslip, it would cost the employer EUR 200. The disparity between gross and net pay is a source of frustration for French workers, concluding Montchalin.
---------
Topics covered: salary, VAT, taxation, budget, government
Could the return of a social VAT mark the beginning of changes in France's social model? This question has been on French citizens' minds since Macron mentioned the possibility during his recent interview. While Montchalin supports the president's stance, she has also expressed her belief that there are alternative solutions to ensuring that French workers earn more.
Further Perspectives:
- French public sector unions, such as SNES-FSU and UNSA Education, continue to advocate for better pay and working conditions in opposition to austerity measures that erode net salaries. They argue for reinstating pay levels and combating reductions that enlarge the gap between gross and net wages[1].
- Calls for increasing the "value of the index point," a popular reference in public sector salary scales, aim to restore pay levels closer to their early indices, indirectly diminishing the divide between gross and net pay through improved net remuneration without significantly increasing gross expenses for employers [1].
- Minimum wage increases have been implemented in recent years, most recently in November 2024 and January 2025, raising the minimum hourly and monthly gross wages (e.g., the gross minimum wage increased to EUR 11.88 per hour and EUR 1,801.80 per month). However, these adjustments don't directly tackle the social charges causing the gross-net disparity [2].
- Changes in unemployment insurance and social benefits, such as stricter requirements for RSA recipients and age-related adjustments to unemployment compensation, are part of broader government initiatives to rebalance social security and income distribution mechanisms, which may indirectly impact net income relative to gross earnings [4].
In Conclusion,
While specific government policies targeting the adjustment of the gap between gross and net salaries are not explicitly detailed in the search results, ongoing union actions against austerity and demands for wage restoration, in addition to minimum wage increases, indicate the direction of the policy discussion heading towards narrowing this divide [1][2]. The French government's pursuit of a fairer work-income equilibrium continues as they discuss the complexities of taxation, contributions, and social spending.
- The French government's primary goal is to bridge the gap between gross and net salaries, with the return of a social VAT being one possible solution that has raised questions.
- French public sector unions are advocating for better pay and working conditions, aiming to combat reductions that widen the gap between gross and net wages.
- Minimum wage increases and changes in unemployment insurance and social benefits are part of government initiatives to rebalance social security and income distribution mechanisms, with potential impact on net income relative to gross earnings.
In conclusion, the French government is actively addressing the issue of disparity between gross and net salaries through various policies such as potential taxation changes, minimum wage adjustments, and reforms in unemployment benefits.
