Active solidarity income was introduced in 1 June 2009 and replaced the minimum income support, single parent allowance and various incentive benefits for returning to work. The announced objective of this reform is to encourage returning to work and reducing poverty.

Active solidarity income covers persons aged over 25 (inclusive) or with a dependent child, who are unemployed or whose income is lower than EUR 880. A single unemployed person with no children will receive EUR 454.63 per month. In the event where the beneficiary is in paid employment, he will receive a degressive allowance in addition to his salary which will vary based on his income.

The new benefit should apply to three million households or seven million persons in total. It will cost EUR 1.5 billion and will be funded by a new 1.1 percent tax on capital income, such as savings, shares, income from land occupation and capital gains.

Source: http://www.legifrance.gouv.fr

Reference: LOI n° 2008-1249 du 1er décembre 2008 généralisant le revenu de solidarité active et réformant les politiques d'insertion.

Legislation date: 12.2008

Implementation date: 06.2009