Friday, 21 January, 2022

One less tax advantage for retirees

The government’s quest for savings could cause a stir in families. For the 2020 budget, he wants to remove the tax loophole enjoyed by the elderly on home help.

One less tax advantage for retirees

Gardening, shopping, cleaning or simple company, from January 1, those over 70 should pay more for their home help. No more total exemption from charges up to 650 euros of salary per month. The employer’s contribution will have to be paid: an additional cost of 17 euros net per month for a contract of one hour per day, according to the Ministry of Labor. The only exception: disabled or dependent elderly people would still be exempt.

Return from work to gray?

The home employment sector fears the explosion of undeclared hours. “We will find these large volumes of gray hours which will no longer be declared”, assures Marie-Béatrice Levaux, president of the Federation of Private Employers of France. A risk that does not exist according to the government. By removing these exemptions from charges, the state should save 115 million euros per year.