JANUARY 1, 2023. Smic, pensions, booklet A, fuel aid, housing tax… The purchasing power of the French is affected by many changes with the transition to the new year. Here is an overview.
[Updated on January 2, 2023 at 12:03 p.m.] Who says new year, also says changes for the finances of the French. Thus, on January 1, 2023, the minimum wage and pensions increased, the fuel discount of 10 euro cents at the pump ended, as did the red stamp and the housing tax. Other developments are expected in the coming weeks, such as the increase in motorway prices, the rate of the Livret A or the arrival of new, more targeted fuel aid.
Faced with these multiple changes, it can be complicated to navigate. To help you assess how your savings will be affected, we have put together a file that lists all the changes announced with the transition to the new year. You can also click on our summary to access more quickly what interests you.
The minimum interprofessional growth wage (Smic) increased mechanically on January 1, 2023. Indeed, due to persistently high inflation (5.3% over the whole of 2022), the Smic was raised by 1.8%, to reach 1,353 euros net. That is a monthly gain of 24 euros for all employees paid the minimum wage. Its gross amount passed, for the first time, the symbolic bar of 1,700 euros, at 1,709 euros. The gross hourly amount reached 11.27 euros.
The rate of the favorite savings product of the French, the livret A, is expected to exceed 3% from February 1, 2023. Good news for savers after the previous increase from 1% to 2% in August 2022. This rate will remain well below inflation, estimated at 5.3% for the whole of 2022. The gap will however narrow in 2023. Indeed, the consumer price index is expected to hover around 4, 2% according to the Ministry of Economy. Want to know more about alternatives to the Livret A? Check out our brief now:
While the discount at the pump of 10 euro cents per liter of fuel purchased ended on December 31, 2022, the government wishes to continue its policy of supporting the most modest French people. In this sense, a new fuel aid of 100 euros will be distributed from the beginning of 2023. This is a more targeted aid, intended for the 50% of the poorest households, i.e. 10 million people. For example, your 2021 reference tax income (RFR) must be less than or equal to 14,100 euros to hope to pocket this exceptional bonus.
To claim it in 2023, nothing could be simpler. You will need to go to the tax site to fill out a form using your tax number, your license plate number and a sworn statement stating that you are indeed using your vehicle to go to work. The fuel allowance application form will be open “from January 16”, said the Minister of Economy and Finance, Bruno Le Maire, Thursday, December 8, 2022 on RMC. He specified that the transfer will be received “within 8 days once you have declared yourself”.
After successive increases of 1% in January 2022, then 4% last July (60 euros per month for a pension of 1,200 euros), retirement pensions under the basic scheme experienced a further increase on 1 January 2023. minimum pensions for basic pensions have thus increased by 0.8%. An increase which will be visible on the amount of the pension paid in February 2023. The additional ones, they increased by 5.12% on November 1st.
Are you a fan of epistolary conversations? Bad news, La Poste is now moving towards digital. Indeed, since January 1, 2023, it is no longer possible to stick a red stamp on an envelope. The red letter has been renamed “red e-letter” and is only available online. On the price side, there are new increases. Sending a red letter costs you 1.49 euros with the new dematerialized formula, against 1.43 euros previously, with the basic red stamp.
The housing tax is a tax levied for the benefit of local communities. The amount of this varies from one municipality to another, and its tax rate is voted by the local authorities. It also depends on the characteristics of the taxable premises and your personal situation (household composition, income) on 1 January of the tax year.
This residence tax has been gradually decreasing since 2018 to end in 2023. De facto, from January 1, 2023, no taxpayer has to pay this tax. Please note that the housing tax reform does not apply to secondary residences. If you are the owner of another property, you are therefore liable for the housing tax on this one. The calculation is strictly identical to the tax on principal residences.
In some cases, the municipality applies an increase in housing tax on second homes. You can claim an exemption for any of the following reasons:
Property owners, expect the bill to be much higher in 2023, as the cap on the review of cadastral rental values ??will not take place. These values ??serve as the basis for calculating the property tax. De facto, cadastral rental values ??should increase by 7% in 2023, following the level of inflation. As a direct consequence, impressive increases could occur. According to some calculations, the property tax could soar by 52% in Paris, or even 20% in Grenoble.
The rate of pay for the PEL (housing savings plan) has doubled! Indeed, it went from 1% to 2% on January 1, 2023, as announced by the Minister of the Economy Bruno Le Maire, Thursday, December 8. This is the first increase in 22 years. “This 2% rate will apply to newly opened PELs in 2023 and will therefore not concern the stock of existing PELs,” the minister also said.
The income tax scale has been increased by 5.4% since January 1, 2023, due to the rise in consumer prices. An increase included in the finance bill for 2023. This new scale concerns income received in 2022 and which you will mention in your tax return, in the spring of 2023. Here is the complete scale of income tax which will applies in 2023:
While the energy crisis suggests large increases in gas and electricity prices this winter, the price shield, already extended until December 2022 for gas, and until February 1, 2023 for electricity, is renewed in 2023. The increase in gas and electricity prices is limited to 15%. The limitation is higher than that of 2022 (which was 4%) and it concerns “all households, condominiums, social housing, small businesses and the smallest municipalities”.
The government has increased the budget allocated to MaPrimeRénov’ aid, from 2 billion euros in 2022 to 2.5 billion euros in the 2023 finance bill. As a reminder, MaPrimeRénov’ is an aid to the energy renovation proposed by France Rénov’ and calculated according to your income and the ecological gain of the work. On December 22, 2022, the Minister for the Ecological Transition, Christophe Béchu, also announced in a press release that the ceilings for works that can be financed by this system will be increased on February 1, 2023, in order to take inflation into account.
The MaPrimeRénov ‘condominium aid, which is used to subsidize energy renovation work on the common areas of condominiums, will see its ceilings raised “from 15,000 to 25,000 euros”. The MaPrimeRénov ‘serenity’ aid, which for its part finances renovation work allowing an energy gain of at least 35%, will see its ceilings “raised from 30,000 to 35,000 euros to better support the most modest households in their comprehensive renovation projects”. In addition, it is no longer possible since January 1, 2023 to use this aid to finance the purchase of gas boilers. Find all the changes planned in the government press release.
If highway fares rise in line with inflation, they could skyrocket by 7% to 8%. The contracts of the motorway companies provide that they pass on inflation to the final customer price up to 70%. The government, through the Ministry of Transport, nevertheless spoke of a “reasonable increase” through negotiations. It thus announced, on December 2, 2022, an average increase of 4.75% in February 2023. “Orders will be published by February 1, 2023”, specifies the government. As a reminder, this increase was 2%, on average, in 2022.
