Changes in France from 1st January 2023

Changes from the 1st of January – As with the first of every month changes are to come into force in France from January 1st including a revaluation of the minimum wage the SMIC, pensions, an increase in the price of the Navigo, free condoms and a ban on the rental of the most energy-intensive accommodation.

In detail the Smic minimum wage increases by nearly 25 euros net. From 1329.05 euros per month to 1352.97 euros. Pensions will be increased for the third time this year. After having gained almost 1% in January 2022 and 4% in July, the basic pensions of the CNAV, the CNRACL, the CNAVPL, the SRE or the ASPA will increase by 0.8%. This increase should concern 14 million pensioners.

To control the surge in energy prices, the government has decided to extend the tariff shield in 2023. The increase in tariffs will therefore be capped at 15% for gas in January and 15% for electricity in February 2023.

According to Prime Minister Élisabeth Borne, "these increases should lead to an average increase in bills of around 25 euros per month for households that heat with gas, instead of around 200 euros per month without a tariff shield". For homes that are heated by electricity, it will reach an average of 20 euros per month, instead of 180 euros per month, without a tariff shield.

On December 31, 2022, at midnight, the current government rebate of 10 cents on a litre of fuel will end. But with the price of fuel remaining high, the government has opted for an additional aid during this period of inflation. To benefit from it, you must own a car, have a job and belong to the first five income brackets, that is to say the 50% of the most modest French people who own a car. A dedicated space will be put online on the government website, from January 16th. Future beneficiaries will have to enter their tax number, the license plate of their car and make a declaration on the honour that this aid will be used to finance the trips between their home and their place of work. According to Matignon, this aid should concern a total of 10 million people.

Bad news for motorists. If the most modest will benefit from the fuel bonus, all drivers will have to pay more to pass the toll gates. From February, the average price for certain sections of France’s motorways will increase by 4.75%. A significant increase which is explained by the context of high inflation. In 2022, they had already increased by 2%.

To promote carpooling for home-work journeys, the government will pay a bonus of 100 euros to drivers who embark on this shared mode of transport, from January 1st. To benefit from it, motorists will have to make a first trip and carry out nine more in the following three months. They will receive, via the carpooling platform on which these trips to several have been made, two payments. The first of 25 euros will be made no later than three months after the first trip. A second payment of 75 euros will be made no later than three months after the 10th carpooling trip. This bonus will be paid in cash or in the form of vouchers for everyday consumer products.

The ecological bonus increases from 6000 to 7000 euros. Emmanuel Macron wants to make the electric car more accessible. To do this, the president announced an increase in the ecological bonus reserved for new purchasers of electric vehicles. From January 1st, 2023, its amount will be increased from 6,000 to 7,000 euros for half of the poorest households investing in this type of car. This bonus is valid for vehicles sold for less than 47,000 euros, either compact electrics or SUVs, such as the Renault Mégane or the Peugeot 2008, but not a Tesla.

From January 1, 2023, a zero-rate loan will be tested for two years to finance the acquisition of cleaner vehicles for the most modest households. To benefit from it, they must be domiciled in low-emission zones or in a neighbouring intermunicipal community and have a tax income of 14,000 euros maximum. This system may also benefit micro-enterprises with fewer than 10 employees, domiciled in the same areas, and who’s turnover or balance sheet total is less than 2 million euros. The loan will be subject to specific conditions: for example, it cannot exceed 30,000 euros and will be repayable in seven years with banks that have signed an agreement with the State.

From January 1, 2023, the price of the Navigo pass for transport in the Paris region will increase by 12%. Increasing to 84.10 euros per month, an increase of nearly 10 euros compared to its current price. The monthly price of the Navigo pass had been set at 75.20 euros since January 2017. The single ticket will also be sold at a higher price to users since its price will reach 2.10 euros compared to the current 1 euro 90. The price of the week pass will change from 22.80 euros to 30 euros. And the T+ ticket book can be bought at 19.10 euros, compared to 16.90 euros.

To cope with inflation, the SNCF announced that the prices of TGV tickets would increase by an average of 5% from January 10th. In addition, the railway company will tighten the conditions for exchanging and cancelling its tickets for users, starting in early February. In the event of exchange or cancellation of a ticket, free admission will only apply D-6 be