After a day-long meeting with industry leaders and union staff following violent protests in several regions of France, President Macron has brought in laws for an increase in minimum wages along with tax concession to quell the unrest. During his television address to the nation the president condemned violence across the city and damage to public property but he said that anger was genuine and not unfounded due to rising costs of living and fuel costs. As per his announcement, the minimum wages in France would now be at € 100 every month from next year onwards and the tax hike for low income pensioners will be cancelled.
Also overtime income would not be taxed and employers will be told to pay tax free bonus during year end. He refused demands by working class to impose higher taxes on the rich as he stated that it would weaken the roots of economy and wealth is needed to create employment opportunities. As per details of the new changes announced by Mr. Macron the minimum salary in France would be enhanced by 7 percent the cost of which will be borne by government exchequer instead of employers. Minister Olivier Dussopt told national television that the total cost of these financial measures will be around € 8 billion to € 10 billion that will require fine tuning of annual budget to fit these expenses.
These financial measures had to be launched immediately as the president had no choice in the face of protestors that were not willing to listen to empty promises. He made four significant changes namely increase in minimum wage, removal of taxes and charges overtime income, encourage for tax free bonus and end of surcharge on pensions. Speaking about the protests he said that in the past 40 years public services in villages and remote areas have been diminishing and living conditions have deteriorated so he has pledged to meet mayors from all regions to tackle problems at the earliest.