August 1, 2024 marks the entry into force of several important regulatory changes in France. These changes will affect various aspects of the daily lives of the French, ranging from savings to family allowances.
Reduction in the rate of the Popular Savings Account (LEP)
The Livret d’Épargne Populaire (LEP), intended for low-income households, sees its interest rate decrease from 5% to 4%. This decrease will affect approximately 11.4 million French people, with a deposit ceiling set at 10,000 euros. The LEP remains an attractive savings product despite this reduction, due to its tax exemption and its accessibility for low-income households. The rate of Livrets A and Livrets de Développement Durable et Solidaire (LDDS) remains at 3%.
No increase in electricity prices
Contrary to expectations, electricity prices will not increase on August 1, 2024. A 10% increase had been planned but was cancelled by the government. This decision is a relief for French households, who have already suffered an 8.6% increase in February 2024.
Increase in the minimum wage
The Minimum Interprofessional Growth Wage (SMIC) will increase by 2.01% on August 1, 2024, to €1,329.06 net per month for a full-time employee. This increase is a direct response to inflation, in accordance with the legislation that provides for an automatic increase in the SMIC when inflation exceeds 2%.
Revaluation of social benefits
The government has decided to increase several social benefits by 4%, including the Disabled Adult Allowance (AAH), the Active Solidarity Income (RSA) and family allowances. These retroactive increases will apply from July 1, 2024.
Back to School Allowance
The back-to-school allowance, intended to help families cover back-to-school expenses (supplies, clothing), will be paid from mid-August 2024. It varies depending on the age of the children, reaching up to 454.60 euros per child in school between the ages of 6 and 18.
Back-to-school allowance 2024: everything you need to know
The Rail Pass for young people
The Rail Pass, introduced to promote youth mobility, remains available in August 2024. This pass allows young people aged 16 to 27 to travel unlimited on the TER and Intercités networks for 49 euros per month. This initiative has already attracted more than 100,000 young people since its launch.
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