Adapted into English from the French Finance Ministry’s Website https://www.economie.gouv.fr/particuliers/ce-qui-change-janvier-2024#
By Victoria Maître Headdon
Translator, Interpreter, Consultant, French-English Lawyer-Linguist
Helpingyouinfrance.com | helpingyouinfrance@gmail.com
Individuals: what is changing on 1 January 2024
By Bercy Infos, 02/01/2024 – Taxes Consumer Money Digital Social benefits Energy saving
Changes to the MaPrimeRénov’ scheme, an increase in the income tax scale, car leasing at €100 per month, the creation of a “future climate” savings plan reserved for under-21s… Find out what’s changing for you in 2024.
Contents
Income
Tax
Fuel and energy
Ecological transition
Loans, credit and savings
Work
Everyday life
Future developments in 2024
Income
Revaluation of the minimum wage
On 1 January 2024, the amount of the minimum wage (Smic) will increase by 1.13%. This brings it to €1,766.92 gross per month for a 35-hour working week (decree no. 2023-1216 of 20 December 2023).
The new amounts from 1 January 2024 are as follows:
Net minimum wage: €1,398.69
Gross minimum wage: €1,766.92
Net hourly wage: €9.22
Gross hourly wage: €11.65
Revaluation of pensions
To keep pace with changes in consumer prices, a further increase in the value of pensions under the general scheme has been decided. It amounts to 5.3% and takes effect from 1 January 2024. This increase will be applied to your January pension, which will be paid on 9 February.
Tax
Indexation of the income tax scale to inflation
The income tax scale will be increased by 4.8% from 1 January 2024, in accordance with the Finance Act for 2024.
2024 tax scale on 2023 income Fraction of taxable income (for one share) Tax rate to be applied to the band
Up to €11,294 – 0%
From €11,295 to €28,797 – 11%
From €28,798 to €82,341 – 30%
From €82,342 to €177,106 – 41%
More than €177,106 – 45%
Extension of the “Denormandie ancien” tax reduction
The “Denormandie” scheme for older properties has been extended until 31 December 2026. This scheme gives the right to a reduction in income tax on the purchase of older homes that have undergone improvement or conversion work representing at least 25% of the total cost of the transaction.
Fuel and energy
Fuel allowance maintained
In 2024, a “worker’s fuel” allowance will be paid if the price of fuel exceeds an “alert threshold”. This would amount to €100 per vehicle, or around 20 cents per litre for six months for the average motorist.
Maintaining the electricity price shield
The electricity tariff shield, which has been in force since 2022, will be maintained in 2024. Throughout the year, the government will be able to set regulated electricity tariffs (TRVe) at a lower level than those currently in force, in order to limit the increase in tariffs scheduled for 1 February 2024.
Ecological transition
Evolution of MaPrimeRénov’ and launch of Mon accompagnateur Rénov’
In 2024, the energy renovation premium for private housing, known as MaPrimeRénov’, will change. To speed up major renovations, a streamlined procedure will be set up, with support and better financing, with subsidy rates of up to 90% for work costing up to €70,000.
The “Mon Accompagnateur Rénov'” scheme, where a trusted third-party contactor helps homeowners with their renovation projects, will also become systematically available.
Changes to the ecological bonus
As part of the energy transition and the national “Green Industry” strategy, the eco-bonus is changing. From now on, vehicles purchased or leased must have a minimum environmental score to be eligible for this aid. This score provides a more comprehensive assessment of a vehicle’s carbon footprint.
Introduction of electric car leasing at 100 euros/month
A new scheme for leasing electric cars at 100 euros a month (or less) is being introduced from 1 January 2024 (decree no. 2023-1183 of 14 December 2023). This leasing offer applies to households that need a vehicle for their business trips, and is subject to a number of conditions.
You can check your eligibility on the dedicated website: mon-leasing-electrique.gouv.fr
Reinforcement of the ecological penalty
The Finance Act for 2024 tightens the tax regime applicable to the most polluting vehicles by:
-an increase in the tax on CO2 emissions from the highest emitting tourism vehicles,
-increasing the tax on heavy mass working vehicles,
-replacing the annual tax on the age of vehicles with a tax on emissions of atmospheric pollutants,
-the inclusion in the scope of the malus of “pick-up trucks” with at least five seats (except those used exclusively to operate ski lifts and ski areas) and vehicles with “van” bodywork with at least two rows of seats used to transport people,
-the large family reimbursement will be limited to once in any two-year period, except in situations where the vehicle has become unusable.
Increase and extension of the repair bonus
The repair bonus is a form of assistance to help you repair your everyday appliances at a lower cost. A number of changes are planned for 2024, including :
-doubling the amount of the bonus for five everyday appliances: washing machines, dishwashers, tumble dryers, hoovers and televisions,
-an increase of €5 on 21 appliances,
-the eligibility of 24 new items of equipment (bringing the total list from 49 to 73 products),
-the eligibility of “accidental breakage”, with €25 deducted from the bill for repairs following the breakage of a mobile phone screen,
-the lowering of the trigger threshold from €180 to €150 for a laptop.
Widespread organic waste sorting at point of origin
From 1 January 2024, local authorities will be required to introduce organic waste sorting at point of origin for private households, as part of their public waste management service. This follows the European framework directive on waste and the law on the fight against waste and the circular economy (Loi AGEC).
Loans, credit and savings
PTZ and eco-PTZ extended
The zero-rate loan (PTZ), designed to support first-time buyers of property, has been extended until 31 December 2027, whereas it was due to end in December 2023. The scheme has also been refocused on the purchase of new homes in high-income areas, or older homes with work carried out in low-income areas.
A new income scale has been in operation since January 2024, giving 29 million tax households access to the scheme.
The eco-PTZ scheme, which finances certain improvements to the overall energy performance of homes, has also been extended by four years.
Increase in PEL interest rate
PEL home savings plans opened from 1 January 2024 will benefit from an interest rate of 2.25%, up from 2% in 2023. If your account remains open for at least three years, it will be eligible for a home loan at a rate of 3.45%.
More flexible conditions for granting home loans
From 1 January 2024, it will be possible to exceed the maximum repayment period from 25 to 27 years if the property loan, linked to the purchase of an existing property, includes a programme of works amounting to at least 10% of the transaction (compared with 25% in 2023).
In addition, bridging loans as defined in paragraph 16 of article L. 311-1 of the French Consumer Code, where the loan-to-value ratio is 80% or less, are excluded from the calculation of the household expenditure-income ratio.
PERs no longer open to minors
With effect from 1 January 2024, the French Finance Act for 2024 abolishes the possibility of minors opening an individual retirement savings plan (PER).
A new savings product reserved for young people under the age of 21 has also been introduced: the “avenir climat” savings plan (see below).
Employment
Pôle emploi becomes France Travail
In application of the full employment law passed on 18 December, France Travail will be gradually rolled out from 1 January 2024 to replace Pôle emploi.
The Pôle emploi website will become francetravail.fr from February 2024.
Changes to the value-sharing bonus
From 1 January 2024, the value-sharing bonus will no longer be exempt from social security contributions. An exception will be made for employees of companies with fewer than 50 employees who, during the 12 months prior to the payment of the bonus, received remuneration of less than three minimum annual earnings. These employees will continue to be exempt from social security contributions and income tax until 31 December 2026.
In addition, Act no. 2023-1107 of 29 November 2023 on value-sharing introduced a new mechanism: the company value-sharing plan. This plan can be set up for three years in companies and groups mentioned in the Labour Code. From now on, two value-sharing bonuses may also be awarded in respect of the same calendar year.
Everyday life
Creation of MaPrimeAdapt’ for home adaptation work
MaPrimeAdapt’ has become the new single source of assistance for home adaptation work for people who are elderly, disabled or losing their independence, and who wish to adapt their home to their needs. It applies to owner-occupiers and tenants of private property who are losing their independence early, who are disabled or aged 70 or over (means-tested).
This aid will be distributed by the Agence nationale de l’habitat (Anah) from 1 January 2024 and will cover 50% or 70% of the cost of the work, with a ceiling of €22,000.
Extended use of meal vouchers
The use of meal vouchers for purchases of food products that are not consumed on site has been extended by one year from 1 January 2024 to 31 December 2024.
Future developments in 2024
Creation of the “avenir climat” savings plan
A new savings product reserved for people under the age of 21 will be introduced in 2024: the “avenir climat” savings plan (PEAC).
This scheme, created by law no. 2023-973 of 23 October 2023 on green industry, will enable young French people to build up long-term savings geared towards financing the ecological transition.
This savings plan will come into force on a date to be set by decree, no later than 1 July 2024. The operating procedures will also be determined by decree.
New version of the SRI label
The socially responsible investment (SRI) label is tightening up its requirements in the fight against climate change by adopting a new standard excluding fossil fuels (coal, oil and gas). This will come into force on 1 March 2024.
Abolition of the green car card
From 1 April 2024, the green card will disappear for all registered vehicles.
Car insurance will still be compulsory. Proof of insurance cover will now be provided by consulting the Fichier des Véhicules Assurés (FVA), which compiles all third-party motor insurance policies in France. This file can be accessed by the police during checks.
Introduction of the universal charger
From 28 December 2024, professionals will have to sell the appliance and its charger separately, so that consumers do not have to buy a new charger if they already have one suitable for all their appliances, in a move that is both economical and environmentally friendly.
Victoria Maître Headdon: Translator, Interpreter, Consultant, French-English Lawyer-Linguist 