Whats changing in 2012?

2012 holds some interesting changes for France

Workers

In 2012, the national minimum wage is set to rise to 9.22 euros gross per hour and 1398.37 euros gross per month. This will bring about a 2.4 per cent rise to the national average in comparison with 2011. Other changes for the workplace are also in the pipeline. Watch out for the reinstatement of overtime hours at work as part of the 2012 ‘réduction Fillon’, more emphasis on workplace equality in the form of a new action plan, and a soaring fixed social tax rate increasing from 6 per cent to 8 per cent.

Retirement and maternity leave are also set to be reevaluated and combined this year. In a new plan to calculate pension funds based on maternity leave, the goal of the operation is to contribute to reduce the gap between men and women in the workplace as well as the amount of allocated pension.

Households
French households beware! Gas prices will increase by up to 10 per cent in 2012. Insurance is also set to soar in by up to 10 per cent. Particularly affected will be home and car policies, while a 5 to 6 per cent rise is predicted to suffocate health insurance.

Inflation figures for the coming year have been put at 1.7 per cent. This will have a knock-on effect on supplementary welfare allowance, which will go up to 474 euros per month for an individual without any children, as opposed to 466.99 euros per month in 2011.

Family benefits will receive a boost of 1 per cent from 1st April 2012. Couples with a young child and two salaries equating to no more than 45,000 euros will be eligible for the benefits.

Health

As well as a brand new three million-euro health initiative to enhance medical research across the Alpes-Maritimes in 2012, a reevaluation of pharmacist’s salaries will also get underway this year.

Foreigners

A new service for tourists is to be implemented between travel companies and travellers. In a bid to keep after-sales relationships more amicable, there will be a more effective way of dealing with potential complaints and disputes.

In terms of immigration, foreigners who wish to reside in France permanently will now be forced to sign an agreement concerning the rights and needs of a French citizen. It comes as Interior Minister Claude Guéant announces that foreign students must now have studied for at least a master's degree to be eligable for residency in France. The government was  criticised for previously encouraging prefects to tighten immigration controls on international students.

The French social benefits scheme (CAF) will now be able to access information on the residency of foreign students in France, files on social security and foreigners residing in the country. 

Transport

From 1st January 2012, the minimum fee for a taxi in France went up. An increase of 3.7 per cent takes fees to a staggering starting price of 6.40 euros. 50,000 taxis will also be required to be fitted with a new signaling system, displaying a green light for a vacant car and a red light for an occupied vehicle.

From 3rd January 2012, SNCF increased rates by 3.2 per cent. Téoz and Lunéa as well as TGV are hiking up their tariffs by up to 60 cents per train ticket. On the roads, the Alpes-Maritimes will have 11 new speed cameras across the region, adding to the existing 14 that are already in action. Hotspots will include Roquebrun Cap-Martin (RD52), Menton (RD6007) and Villeneuve Loubet (Boulevard de la Plage). 14 new cameras will also be introduced in the Var region throughout the coming year. 

Business

From 1st January, a host of new charges have been implemented. There's tax increases for companies who generate more than 250 million euros annually, and societal tax (Impôt sur les sociétés) will increase by five per cent.But it is not all doom and gloom - charges will be lifted on annual salaries in accordance with the amount of extra working hours an employee undertakes.

With regards to subcontracting, a decree was issued on 21st November 2011 stating that subcontractors are required to submit official orders to their customers. The document must highlight that social fees have been declared and paid. This new obligation officially came into effect on 1st January 2012. 

In a bid to go green, businesses in France are now obliged to carry out a detailed report of their annual C02 emissions, as of 12th July 2010. (La loi “Grenelle 2”) The document must be made public and updated every three years.

Consumers

France will increase sales tax on alcohol. The charges will bump up the cost of products with an 18 per cent alcohol content or more. The price of soft drinks is also on the up, as an increase of up to 35 per cent is predicted to be passed on to consumers. The price of tobacco and cigarettes is also continuing to rise.

TVA will increase from 5.5 per cent to 7 per cent, impacting upon catering, accommodation and home services, among others.

And finally ... 

Nice will be considered a major city of France from 2012. 46 districts in the Alpes Maritimes will be involved in the city's new status of ‘la métropole Nice Côte d’Azur’.

Louise Kirby