The middle-point of the year, July, sees a number of changes in France.
With many people in France beginning their summer holidays in July, the month generally has less administrative changes than June - but nonetheless there are important updates to be aware of.
It is also a month filled with important dates for your calendar, including France’s national holiday on July 14, the start of the school summer holidays on July 4, and most likely the end of France’s summer sales, although these have been extended due to the impact of the record June heatwave.
Note that tax notices (avis) will also begin to be issued at the end of the month, alongside reimbursements for those who paid too much income tax in 2025.
Below, we cover the major changes to be aware of across the month.
Energy price increases
Gas contracts of all types will increase in July as transmission taxes are increased and the benchmark price for gas contracts increases by 7.4%.
This means both variable contracts (tied to the monthly benchmark price) and fixed contracts will see increases.
The former, representing around 60% of all gas contracts in France, will increase by around €2.70 per month.
Fixed-term contracts will only increase by around 1.5%.
Variable rate contracts may drop in August following an end to the conflict, if gas supplies from the Strait of Hormuz begin to return to pre-conflict levels.
Electricity contracts will increase in August as usage taxes rise..
Parental leave changes
From July 1, parents can benefit from an additional two months of parental leave following the birth of a child.
This extra parental leave allowance entitles both parents to one or two months’ additional leave, and comes on top of the leave already provided for. It is not compulsory to take it.
It is covered at up to 70% of their salary in the first month and 60% in the second.
Parents can alternate the time off or take the leave together, but they must give one month’s notice (down to 15 days if taken immediately after existing parental leave).
Read more in our June round-up here.
Social leasing scheme returns
France’s social leasing scheme, which allows drivers to lease out an electric vehicle, returns for the third year on July 16.
Up to 50,000 households can benefit from leasing an electric car at below-market rates, provided they sign up for a minimum contract of at least three years.
To benefit, drivers must be a main resident in France, have a net revenue of €16,880 or below, and either drive more than 8,000 kilometres per year or drive at least 10 kilometres between home and their place of work.
Net revenue is based on 2024 income (found on your 2025 income tax avis), and not the tax declarations from this spring for 2025 income.
Monthly costs will be around €150 for the vehicle, excluding the cost of charging vehicles.
You can use the official government simulator to see if you are eligible, and learn more about the scheme and how to apply, on the website here.
Prime d’activité increase
The in-work benefit top-up prime d’activité will increase by around €50 per month across the summer for three million households, due to measures included in the 2026 budget.
The top-up will come after quarterly declarations between July - September are made. The payment is automatic, and declarants do not need to do anything except complete their quarterly declaration as usual to benefit.
It comes on top of an independent 0.8% increase in April.
Card payments on Parisian public transport
Technology to allow for contactless card payments on the Paris public transport network will begin to be installed progressively from July.
Already available on some buses, passengers will be able to tap their cards to use public transport, similar to in London and other major cities.
Journeys purchased this way will be 55c - 80c more expensive than tickets purchased to go on a Navigo card, but should reduce queues at major stations.
Parts of metro line 14 and the Montmartre funicular will be the first to have the technology installed.
Read more in our article here.
International students see reduced housing benefits
From July 1, non-EU/non-EEA/non-Swiss students studying at a French university will no longer be eligible for housing benefits (aide personnalisée au logement, APL).
Students from other countries, including the UK, US and Australia, will not be able to obtain APL benefits unless they also have a needs-based grant.
This applies to both new and current students, including those already in receipt of APL, and will see total income reduced by €100 - €250 per month.
Students should talk to their international relations office if concerned about losing the benefit, as they may be able to point them towards other grants. Alternatively, their local Caf or Crous (student aid) centre may be able to help.
More expensive to set up a business
Those setting up a business as a micro-entrepreneur after July 1 will need to pay more money.
The aide à la création ou à la reprise d’entreprise (Acre) scheme will only allow self-employed people to be exempt from 25% of initial social security contributions, down from the current 50%.
To qualify for Acre, newly self-employed people need to apply via social security body Urssaf within 60 days of opening the business.
The benefit is limited to benefits recipients, people aged under 25 (or under 30 if disabled), those starting businesses in rural areas, and those made redundant. The full list of eligible groups can be found here.
