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.
[Mis à jour le 2 janvier 2023 à 12h03] 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’ve put together a file which 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) has mechanically increased the January 1, 2023. Indeed, due to inflation that is still high (5.3% over the whole of 2022), the minimum wage has been raised by 1.8%to reach €1,353 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, to €1,709. The gross hourly amount reached €11.27.
The rate of the preferred savings product of the French, the A bookletshould exceed the 3% starting the February 1, 2023. Good news for savers after the previous increase of 1% to 2% in August 2022. This rate will remain well below inflation, estimated at 5.3% over the whole of 2022. will however decrease in 2023. Indeed, the consumer price index should hover around 4.2% according to the Ministry of Economy. Would you like to know more about the alternatives to the Livret A? Consult our file without further delay:
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 beginning of the year 2023. This is a more targeted aid, intended for the 50% of the poorest households, i.e. 10 million people. For example, your reference tax income (RFR) 2021 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 have to go to the website of taxes to complete a form using your tax number, your license plate number and a sworn statement confirming that you are using your vehicle to go to work. The fuel allowance application form will be opened “from January 16”indicated the Minister of Economy and Finance, Bruno Le Maire, Thursday, December 8, 2022 on RMC. He clarified 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. The minimum pensions of basic pensions have so increased by 0.8%. An increase which will be visible on the amount of the pension paid in February 2023. The complementary 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, there is no 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 with the new dematerialized formula, against €1.43 before, with the basic red stamp.
- Stamp price green : €1.16
- Price of the red stamp: €1.43
- Gray stamp price: €1.14
- Price of a registered letter: €4.83
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 and will end in 2023. De facto, from January 1, 2023, no more taxpayers have to pay this tax. Attention, the reform of the housing tax 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 request an exemption for one of the following reasons:
- Professional: you must live in a place different from the main residence
- Health reasons: you are in a long-term care facility
- “You cannot use your second home as your main dwelling for reasons beyond your control (for example, a town planning operation requires work to be done in your home)”, indicates Bercy.
Property owners, expect the bill to be much higher in 2023, as the cap on the revision 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 Parisor even 20% in Grenoble.
The rate of pay for the ELP (housing savings plan) has doubled! Indeed, it went from 1% to 2% the January 1, 2023, as announced by the Minister of the Economy Bruno Le Maire, Thursday, December 8. This is the first increase for 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 scale ofincome tax has been upgraded to 5.4% since January 1, 2023, due to rising consumer prices. An increase in the finance bill for 2023. This new scale concerns income received in 2022 and that you will mention in your income tax return, in the spring of 2023. Here is the complete income tax schedule that applies in 2023:
- Below 10,777 euros of taxable income: 0%
- Between 10,777 euros and 27,478 euros of taxable income: 11%
- Between 27,478 euros and 78,570 euros of taxable income: 30%
- Between 78,570 euros and 168,994 euros of taxable income: 41%
- Beyond 168,994 euros of taxable income: 45%
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 1er February 2023 for electricity, is renewed in 2023. The rise 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 for energy renovation offered by France Rénov’ and calculated according to your income and the ecological gain of the work. On December 22, 2022, the Minister for Ecological Transition, Christophe Béchu, also announced in a press release that the work ceilings that can be financed by this scheme will be revalued on February 1, 2023to 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 energy savings of at least 35%, will see its ceilings “revalued 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 planned changes in the communicated of the government.
If highway fares rise in line with inflation, they could skyrocket from 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” thanks to negotiations. He 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.