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Why the State relies on companies to pay certain aid

2021-10-29T18:14:45.773Z


To the surprise of the bosses, the government has delegated the payment of inflation compensation to companies. This is not the first time that he has done so.


The State will not pay inflation compensation directly to the 11.1 million private sector employees who are eligible for it.

Financed by public funds, this bonus of 100 euros will in fact be granted through companies to their employees on their December payslip.

Read alsoThe editorial in

Le Figaro

: "'Inflation

compensation

', in the country of assistance"

Under Emmanuel Macron's five-year term, the state regularly relies on companies to implement certain social measures. First with the withholding of income tax, provided since 2019 by the employer. The government is also calling on the bosses when it comes to granting exceptional bonuses, exempt from charges, to their employees during crises such as the Yellow Vests and the Covid. And now to ensure the implementation of the inflation compensation.

Contacted by

Le Figaro

, Bercy is content to say that delegating the payment of inflation compensation to companies is "

faster and more efficient

".

Without further justification.

The State is thus saving itself from potentially tedious financial logistics work, after having already urgently mounted numerous economic aid programs during the pandemic.

This time, it's up to companies to roll up their sleeves.

"Subcontracting" to companies

However, the latter feel that the State is discharging part of its work on them.

"

What is done by companies is no longer to be done by the State

", points out the president of the Confederation of SMEs (LIKE) François Asselin, who deplores a trend towards "

subcontracting

" of State tasks to the private sector.

For their employees, on the other hand, this method of payment of compensation by the employer offers more comfort than other social assistance that must be claimed.

They are not expected to take any steps to receive the aid.

In the event of a problem, they will be able to complain directly to their hierarchy, to whom the “after-sales service” of the inflation compensation falls.

This new workload ahead of the crucial holiday season in many industries is irritating bosses.

Financially, paying the inflation compensation is like advancing money when our cash flow is already strained.

In addition, updating our payroll software may cost us money.

And then, we will have to manage the complaints of our dissatisfied employees

,

worries Fabrice Godefroy at the head of IDLP, an ETI of which supplies automotive spare parts.

In spite of everything, the tone of the employers remains relatively conciliatory with the government.

Despite some criticism, the employers' unions Medef and Comme confirm that they will ensure the proper payment of the bonus.

Businesses are not in a position to say "no"

“The crisis and whatever it costs have disrupted relations between the state and businesses.

They are not in a position to say

“no”

to the State, because they feel indebted, ”

observes the president of the iFRAP (The Foundation for Research on Administrations and Public Policies) Agnès Verdier Molinié.

According to Bercy, 240 billion euros have been mobilized by the public authorities since March 2020 to protect the economy.

80 billion euros in subsidies, in the form of short-time working, tax exemptions, solidarity funds and 160 billion euros in loans

.

To read also Is the "inflation allowance" of 100 euros "a measure not immediate, not fair and not targeted"?

Some economic players owe their survival to this massive injection of public money.

The IDLP group and its 700 employees have benefited massively from PGEs and partial unemployment.

"Crucial aid

,

"

recalls its president Fabrice Godefroy, acknowledging despite his concerns.

“The state has supported us well.

So if we can return the lift by taking care of the inflation compensation, let's do it ”.

Source: lefigaro

All business articles on 2021-10-29

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