Nowadays, it is possible to benefit from a certain number of aids and guarantees put in place by the State, such as the individual guarantee of purchasing power. This is a guarantee which is calculated over a reference period which is spread over four years, taking on December 31 as the date when the calculations begin.
In addition, it is a guarantee that many employees can benefit from, hence the importance of knowing what it covers and especially what is the amount they will receive. If you want to know more, and above all to understand how calculate its value, keep reading this article.
What is the definition of the individual purchasing power guarantee?
The individual guarantee of purchasing power, or by abbreviation Gipa, and a guarantee which aims to compensate for a loss in purchasing power of any official, in the event that his remuneration has not increased during the last four years. It is possible to benefit from it in the event that the evolution of the employee's index salary is lower in comparison with that of the consumer price index, and this, over a reference period which is 4 years.
In order to know whether or not you are entitled to Gipa, it is possible to use an online simulator. If you are eligible, the simulator can even give you the exact amount that you will be able to collect.
Who are the beneficiaries of the individual purchasing power guarantee?
Different actors in the world of employment may be entitled to the individual guarantee of purchasing power, under certain conditions.
First, all civil servants are concerned without any form of specific condition.
Then, contract workers who are under a permanent contract (employment contract of indefinite duration) in the event that their remuneration is made following a calculation taking into account an index.
Finally, there are also contract workers fixed term (fixed-term employment contract) who are employed on a continuous basis, provided that it is for the same employer during the last four reference years. In addition, their remuneration must, in the same way as contract workers on a permanent contract, to be calculated using an index.
In general, we can say that the individual guarantee of purchasing power concerns all agents:
- category A;
- category B;
- category C.
How to calculate the individual power guarantee?
If it is possible to rely on an online simulator to know the amount of Gipa that you can receive, it is still interesting to understand how it is calculated.
You should know that the indemnity of the individual guarantee of power, which we will call G, is calculated using the index gross salaries of a year (TBA) and using the following formula: G = TBA of the year in which the reference period begins x (1 + inflation over the same reference period ) – TBA of the year of the end of the same reference period.
In order to calculate gross annual index salaries, or TBA, the following formula is used:
TBA = IM on 31 December of the years at the start and end of the reference period x the annual value of the index point for the two years.
You should also know that an agent who works part-time (or not full-time) over the past four years, still has the right to benefit from Gipa in proportion to the time he has worked. The formula to be used in this case will be as follows: G = TBA of the year in which the reference period begins x (1 + inflation over the entire reference period) – TBA of the year in which the reference period ends reference x quantity of working time on 31 December of the year in which the reference period ends.
To get a general idea and clues, you should know that the reference period is spread over 4 years, starting the calculation at the level of December 31. As for the annual values of the index point, they change from year to year. For example, the value was 56.2044 in 2017. Finally, the inflation that is currently taken into account in the calculations is 4.36%.
