Disability pension and CSG: Will you be among the losers?

The normal rate of the CSG on pensions, applicable to taxpayers whose reference tax income is greater than € 1,200 per month, will drop from 6.6 to 8.3 %.No change, however, for disability pensioners exempt from the CSG or benefiting from the reduced rate.

Update of January 11: the amount of many disability pensions paid in early January has dropped.The effect of the announced increase in the CSG?No, a rather error.The funds seem to have applied, by default, the normal CSG rate to pensioners who are normally exempt from it or benefit from the reduced rate.More info by reading this new article from Fais-face.fr

Tous les pensionnés d’invalidité ne sont pas égaux devant la hausse annoncée de la contribution sociale généralisée (CSG), le 1^er janvier 2018. Seules les pensions sur lesquelles s’applique le taux normal vont subir le passage de ce taux de de 6,6 à 8,3 %.

The widespread increase in the 1.7 point CSG corresponds to a commitment from Emmanuel Macron.The President of the Republic wants to lighten the charges weighing on work.For this, he wishes to transfer part of the financing of social protection to the CSG.

A gain in purchasing power for employees

Les cotisations sociales payées par les salariés vont baisser de 2,2 points au 1^er janvier 2018 puis de 0,95 point en octobre 2018, soit 3,15 points au total. Concrètement, ils ne paieront plus les cotisations chômage (2,4 %) et maladie (0,75 %) (2,4 + 0,75 = 3,15).

To compensate for this shortfall for public finances, the CSG will increase by 1.7 points on all income (wages, interest, pensions, etc.).The operation therefore offers a purchasing power to employees.The only ones to take advantage of the drop in contributions while they will share the increase in the CSG with retirees, pensioners and capital income beneficiaries.

A differentiated CSG according to the reference tax income

Certain disability pensioners will however escape the increase in the CSG.In this case, those who benefit from an exemption or the reduced rate.The CSG applies indeed in a differentiated manner to pensions, according to the reference tax income of year N-2 of the holder's home.

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Exoneration

Today, when your reference tax income is less than a certain ceiling (see table below), your disability pension is exempt from CSG.

Are also exempt:

CSG's exemption will continue to apply under the same conditions as today.

Reduced rate of 3.8 %

The reduced rate of 3.8 % applies if your reference tax income is between a floor amount and a ceiling amount (see table below), varying according to the number of family quotient shares to which you are entitled.

The reduced rate of CSG will not be changed.

Normal rate

The normal CSG rate, 6.6 % so far, applies if your reference tax income exceeds an amount ceiling (see table below), varying according to the number of family quotient shares to which you are entitled.This ceiling is the same as that applicable to retirees.

Le taux normal de CSG va passer de 6,6 à 8,3 % à partir du 1^er janvier 2018.

In other words, a bachelor whose reference tax income is greater than € 1,19 of a month will see the CSG rate on his disability pension increase by 1.7 points.The amount of his pension will therefore drop by 1.8 %.That is to say more than what it has been revalued for four years: 1 % (see box below).

Please note: reference tax income-that of the penultimate year-is not limited to the disability pension.He encompasses all the resources of the household.In other words, a person affecting a low pension can very well be applied the normal CSG rate if the resources of their spouse added to its own are greater than € 1,19 of per month, once the tax ceasements have been applied.

The increase in the CSG deductible tax

This 1.7 point increase in the CSG will be completely deductible from income tax.The deductible CSG will therefore increase to 5.9 % over the 8.3 % applicable: 4.2 % were in fact so far and 2.4 % remain non -taxable.For 100 € of taxable income, income tax will therefore be calculated on € 94.10 (= 100 - € 5.9).Small consolation.Franck Seuret

Application of the CSG rate in 2018 according to the amount of reference tax income of 2016 (2017 tax notice), in mainland France

Namely: your reference tax income is indicated on the guard page of your last tax notice.