RSA replaces RMI unemployment benefit today.

Description:

The unemployment benefits scheme, RMI (revenu minimum d'insertion), has today been replaced by a new version entitled RSA (revenu de solidarité active).  The RSI was introduced 20years ago to assist the unemployed and acted as a safety net, but was only paid to those not in employment.

The basic monthly allowance of 454€ remains the same for a single unemployed person, but the RSA has been given a new emphasis.  Instead of simply acting as a safety net for the unemployed, the scheme now aims to encourage people back to work by offering wage supplements to low paid employees. 

Working individuals that earn less than 880€ per month will be entitled claim payments by applying to the national fund for family allowances (Caisse Nationale d'Allocations Familiales).   The payments reduce as wages increase but are paid indefinitely while the individual is entitled.

The scheme is set to cost an estimated 10 Billion euros and its supporters claim it will get people back into work instead of simply relying on the benefits.  It is claimed that an extra 700,000 low earners will be brought above the poverty line.

Funding for the scheme is to be provided by a new 1.1% tax on income.

The government website has more details (French).



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