Revenue of Active Solidarity (RSA)
From 1 June 2009, the revenue of active solidarity (RSA), in French Revenu de Solidarité Active will replace the minimum income (RMI), created 20 years earlier. Intended to fight against the phenomenon of working poor and to facilitate return to work. However, it was subject to public debate.
Background
The French policy of insertion led in the last decades was source of exclusion. The social measures taken over the last twenty years have increased unemployment and poverty at work, exclusion and insecurity.
For tan employee, the gains achieved with their hiring were often offset by the reduction of social benefits attributed to him when he was unemployed. This bad effect particularly concerned the RMI, the single parent allowance (API) and the disabled adult allowance (AAH). They do not incite someone to return to work and generated a "inactivity trap" effect.
In addition, the phenomenon of working poor was increasing: an estimated 1.5 million people in 2003 and 1.7 million in 2005 (data from the 2007–2008 of the National Observatory of poverty and social exclusion).
Aims and principles
The 1 December 2008 Act, consequence of the Grenelle de Insertion, provides the establishment of the RSA. The RSA is to replace, as from 1 June 2009 in metropolitan France and not later than 1 January 2011 for the DOM-TOM, the minimum subsistence income (RMI) and the single parent allowance (API).
The amount paid to unemployed beneficiaries will be at the same level as the RMI, with an increase for single people with children, of which the amount is equal to the previous allowance for single parent (API).
Individuals who go back to work will receive an additional income, a part of the RSA. The amount of this benefit will be equivalent to the amount of the former allocation (received during the unemployment period) minus 38% of the wage. This initial share of RSA decreases when the wage increases. Ad hoc benefits are also provided to cope with expenses related to the resumption of work (transport and childcare).
Finally, and on condition that they does not earn more than up to 1.04 the minimum wage, a worker with modest incomes can also benefit from the RSA.