As of April 1, 2025, a series of significant changes are taking effect in France, impacting social benefits, unemployment insurance, housing loans, and vehicle regulations. These adjustments aim to support households, especially those purchasing their first homes, while also tightening certain financial provisions.
One of the most notable changes is the increase in various social benefits, which will rise by 1.7%. This includes the Revenu de Solidarité Active (RSA), which now stands at €646.52 for a single person and €1,357.68 for a couple with two children. Other benefits affected include the prime d'activité, allocation adulte handicapé, and family allowances, among others. This increase is designed to provide additional support to low-income families and individuals.
However, not all changes are positive. Starting today, the rules governing sick leave compensation have been tightened for private sector employees. Previously, the Social Security system provided a daily allowance of up to 50% of the salary, capped at 1.8 times the minimum wage. This cap is now reduced to 1.4 times the minimum wage, resulting in a maximum daily allowance dropping from €53.31 to €41.47 gross. This change is likely to strain employees who rely on these benefits during periods of illness.
In addition to social benefits, unemployment insurance regulations have also been revised. As of April 1, 2025, the age at which seniors qualify for extended unemployment benefits has been raised from 53 to 55 years, allowing for up to 22.5 months of compensation. Similarly, the age for receiving 27 months of benefits has shifted from 55 to 57 years. For other job seekers, the maximum duration of unemployment benefits remains at 18 months. Furthermore, a new calculation method will apply to monthly allowances, which will now be based on 30 days, regardless of the actual number of days in a month. This change may result in a loss of benefits for some individuals, particularly during leap years.
On a brighter note, the Zero-Rate Loan (Prêt à Taux Zéro, PTZ) has been extended to cover all new properties across France, including both houses and apartments. This change, effective from April 1, 2025, aims to enhance access to home ownership for low- to moderate-income households. The PTZ will now finance between 10% and 30% of the property purchase price for new individual homes, depending on the buyer's income bracket. For apartments, the financing remains between 20% and 50%. This extension is part of a broader initiative to stimulate the housing market and support first-time buyers, with the government targeting the construction of at least 15,000 new homes by the end of 2027.
Valérie Létard, the Minister of Housing, emphasized the importance of this initiative, stating, "The new PTZ will facilitate access to home ownership for many modest households and stimulate the construction sector." The government hopes that by expanding the PTZ, more individuals will be encouraged to enter the housing market, thereby boosting demand for new homes and revitalizing a sluggish real estate sector.
As part of the PTZ reforms, a decree published on March 30, 2025, also outlines the specific quotas for financing based on income levels. For instance, a young worker earning the minimum wage could qualify for a PTZ of €33,000 when purchasing a new home priced at €110,000, effectively reducing their monthly payment by 12% compared to traditional bank financing.
In addition to housing loans, the government has introduced changes to property transfer taxes (Droits de Mutation à Titre Onéreux, DMTO). Local authorities can now increase these taxes by 0.5 points on property purchases starting from April 1, 2025. While not all regions will implement this increase, many, including Seine-Saint-Denis and Loire-Atlantique, have already announced their intentions to do so. First-time buyers, however, will be exempt from these increased costs.
Another significant change is the lifting of the mandatory winter tire requirement for vehicles in certain mountainous regions. This obligation, which required drivers to equip their vehicles with winter tires or carry chains from November 1 to March 31, has been suspended until November 1, 2025. This decision will affect approximately thirty departments, including those in the Alps and the Pyrenees, providing some relief to drivers as they transition into spring.
From April 2, 2025, travelers from France to the United Kingdom will need to obtain an Electronic Travel Authorization (ETA) before entering the country. This authorization, similar to the U.S. ESTA, will initially cost £10 (approximately €12) but is set to rise to £16 (around €19.20) on April 9. The ETA will be required for all travelers, including minors and infants, and will be valid for two years, allowing multiple trips of up to six months each.
As these changes take effect, many households will need to reassess their financial situations, particularly in light of the tightened sick leave rules and the adjustments to unemployment insurance. While the increased social benefits and the expanded PTZ offer some hope for first-time buyers and low-income families, the overall economic landscape remains challenging.
In summary, April 1, 2025, marks a pivotal moment for many French citizens, with new regulations aimed at improving access to housing and providing essential support for families. However, the tightening of certain benefits raises concerns about the financial well-being of those who may struggle under the new conditions. As the government continues to navigate these changes, the impact on everyday lives will be closely monitored.
