The government is considering reviewing several tax measures related to home employment as part of its budget savings for 2026. Among the measures being considered is the reduction of a benefit enjoyed by many seniors employing a home help, a particularly sensitive issue for retirees and those involved in the sector.
According to several business and specialized media outlets, the government plans to raise the age at which employers automatically qualify for certain exemptions on their social security contributions for employing a home care worker, from 70 to 80. This reform would primarily affect retirees aged 70 to 79 who do not receive the Personal Autonomy Allowance (APA) or have a recognized dependency status.
Budgetary savings sought
The Ministry of Finance considers this scheme a costly "social loophole" whose benefits primarily accrue to relatively wealthy households. The tax credit for personal services currently represents one of the State's largest tax expenditures, with an estimated cost of over 6 billion euros per year.
The Court of Auditors and several members of parliament have been advocating for months for a refocusing of aid towards the most vulnerable groups, such as dependent individuals or young parents. Several scenarios are being considered: lowering the income thresholds, reducing the tax credit rate for certain so-called "comfort" services, or limiting automatic exemptions.
However, professionals in the sector and retiree associations are warning of the potential consequences of such a tax cut. They fear an increase in the cost of home care for hundreds of thousands of elderly people and a return to undeclared work. Some estimates suggest an additional cost of several tens of euros per month for the households concerned.Retirement planning)
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