(Bloomberg) — French President Emmanuel Macron’s government has touted the tax-free bonuses he initially created in response to the Yellow Vest protests as a key tool to shift a greater share of the spoils of profitable businesses to labor from capital.
(Bloomberg) — French President Emmanuel Macron’s government has touted the tax-free bonuses he initially created in response to the Yellow Vest protests as a key tool to shift a greater share of the spoils of profitable businesses to labor from capital.
Statistics now show it’s been a boon for business, while keeping pay raises in check.
Almost five million workers received an average bonus of €806 ($848) in 2022 under the program, with particularly large payments in December, according to statistics agency Insee. However, it says base salaries rose by only 0.8% in the fourth quarter, compared with 1% in the third.
Read more: Macron Wants to Pay Workers a Dividend in Gaullist-Era Throwback
“In other words, the payments under the Profit Sharing Bonus substituted around 30% of raises in base pay,” Insee said. “The calculated windfall effect is around the same.”
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