How Much Income to Live in France?
2nd January 2023
A new study has calculated the income needed to live a 'decent' life in France.
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Social scientists are fond of telling us that once basic essentials are fulfilled, more money does not add greatly to the sum total of human happiness, the time and stress of earning it outweighing the gain.
Most of us would probably like to put that theory to the test, but if you think there is an affinity between lucre and the good life in France then just what is enough? Definitions of what constitutes a 'sufficient' level of income abound.
The minimum wage (SMIC) is currently set at €1,709 gross a month, which, after social security deductions, amounts to €1,353 per month, equivalent to €16,236 per year, one of the highest minimum wage thresholds in Europe.
For the national statistics institute, INSEE, the poverty line is set by convention at 60% of the median standard of living of the population. Latest figures (2019) show that it corresponds to a disposable income of €1,102 per month for a person living alone and €2,314 for a couple with two children aged under 14.
There are also a range social benefits that provide an income floor, but they vary, and all only provide enough for basic needs, which fall far short of the INSEE definition. Thus, the minimum pension benefit (Allocation de Solidarité aux Personnes Agées - Aspa)) is set at €953 per month for a single person and €1,480 for a couple.
In an attempt to give a better definition to the idea of a minimum household budget, in a recent study the Institut de recherches économiques et sociales (IRES) constructed 'budgets de référence' , an income level based on the cost of a basket of goods that households need to live and to participate in social life.
The budget de référence is not subsistence income, but a threshold above which households have the capacity to participate effectively in social life without the risk of experiencing significant deprivation.
The basket of goods used were established for various types of households: single persons, a couple with children, retirees, etc.
According to the study, the minimum income necessary to lead a decent life amounts to €1,634 per month for a single person. For a couple the minimum income is €2,002, and a couple with two children would need €3,744 to live properly.
A retired person living alone would need €1,836 a month, whilst a retired couple €2,540. That equates to around €22,000 a year for a retired single person and over €30,000 a year for a couple.
These figures are based on prices for the first half of 2022, since when of course there has been substantial inflationary pressure on households.
The basket of goods that make up these totals are housing, food, transport, household goods, hygiene and cleaning, health, banking and social life.
Inevitably, the study suffers from a level of generalisation that is bound to occur when an entire population is condensed into a handful of statistics.
The housing costs provide for rental or mortgage costs, which will not always be relevant to international property owners. Nevertheless, the group total of €786 per month for a retired couple for all housing related costs (utilities, heating, rates, insurance, maintenance and rent/mortgage) does not look excessive.
Much of course will depend on where you live and what you live in - a condo in Cannes or a village house in the Creuse - but there is no geographic or property type analysis in the study, which does weaken the conclusions.
Similarly, the provision for food for a retired couple of €527 a month does not leave much room for many epicurean delights on the dinner table.
The list also includes €275/month for social activities, including holidays and restaurants, which for the researchers forms an integral part of a full and proper life. Other significant costs are €366/month for transport and €275/month for health. All figures are for retired couples.
Whatever the shortcomings of the study, it is noteworthy that the legal minimum income levels for obtaining a carte de séjour to live in France are not far removed from the budgets de référence. Thus, the minimum working wage is used for a single person. Technically the minimum figure for a couple is therefore €2,706, although in practice many consular authorities and prefectures accept a substantially discounted figure, depending on circumstances, eg, mortgage, rent.
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