Health insurance, purchasing power, transport prices… In 2024, many changes will affect the accounts of cross-border workers.
The new year 2024 has barely begun and the question of rising prices is already in the news. As a cross-border worker, this question is crucial because the Swiss and French increases have an impact on the budget of non-resident workers.
Increases in the cost of living which will impact Swiss cross-border workers in 2024; DECORDIER immobilier takes stock for you:
1°/ Increases on the Swiss side which impact cross-border workers
Even if the cross-border worker resides in France permanently, the increase in the cost of living in Switzerland has an impact on their savings. Indeed, price increases on Swiss territory have an impact on its budget due to its compulsory health coverage and travel to/from Switzerland.
LAMal premiums
LAMal is the name of compulsory Swiss health insurance. This law applies to all Swiss citizens as well as French citizens employed in Switzerland. The majority of cross-border workers contribute to LAMal. The amount of premiums for this health insurance for cross-border workers risks exploding. Indeed, LAMal premiums will increase in 2024, yes but to what extent?
It appears that premiums are increasing by up to 65%. The increase is due to the risk compensation system. The Swiss Federal Council took the decision to include cross-border workers in this solidarity system, which prevents insurers from only supporting customers in good health, which makes them less expensive. Cross-border workers, whose average age is less than 38 years than that of Swiss residents (54 years), are considered a population less at risk and, in a spirit of solidarity, contribute to reducing premiums for a more vulnerable population. It is therefore necessary to increase their premiums to balance those of older and less healthy policyholders.
An increase of 65% which would correspond to an average of 129 additional Swiss francs per month, according to estimates from Helsana, one of the main insurers of cross-border workers. Even if the monthly premium of a cross-border worker is lower than that of a Swiss resident (on average 554 francs), it has a significant impact on their budget.
Transportation
Despite stability in transport prices in Switzerland for 7 years, the year 2024 announces an increase in prices on tram and bus networks in Swiss cities; the SwissPass Alliance, responsible for organizing public transport in Switzerland, has decided an increase of 4.3% on average depending on the type of ticket or subscription from December 2023, which penalizes cross-border workers who must take transport to reach their workplace on a daily basis. In the canton of Vaud, including Lausanne, where there are a large number of cross-border commuters, subscriptions and ticket prices are expected to increase by an average of 3.03%.
On the other hand, in Geneva it is the state which decides the price of TPG tickets, prices should remain stable.
2°/ The increase in the cost of living in 2024, on the French side
As a cross-border worker residing in France, it is not only the increases on the Swiss side that worry workers, the increase in the cost of living on the French side also impacts them.
Food and daily life of the cross-border worker
In France, prices will continue to increase in 2024, particularly for mass distribution and everyday products. A price increase of between 5 and 25% in mass distribution is estimated by the agri-food sector. With the removal of the price shield put in place by the French State in 2023 to block price increases, there is a 10% increase for electricity from February 2024.
The tobacco
Another increase: tobacco. In 2024, the price of a pack of 20 cigarettes will reach €12, an increase of €1.50 per pack compared to 2023. The prices of cigars, roll-your-own cigarettes and electronic cigarettes are also expected to increase in 2024.
However, tobacco is one of the few products to be cheaper in Switzerland. For the moment no increase planned on the Swiss side for tobacco, with an average of €8.90 per pack (CHF8.50).
Insurance and banks
On the insurance side, an increase is also planned for 2024, particularly for home and car: between 5 and 6% increase for home insurance prices and 3.5% for car insurance. On the health insurance side too, mutual insurance companies are also planning to increase their prices by almost 10% on average during 2024.
As for banks, we are looking more towards an increase in bank fees with an increase of 2 to 3% on the price of bank cards and up to 2.5% on account maintenance fees.
The highways
Another black point for cross-border workers: the increase in the price of tolls. As mentioned previously, rising prices will affect Swiss transport in 2024. Motorways, especially tolls, will also see an increase of around 3%. A price increase which could be more significant particularly in our region with the ATMB network (Autoroutes et tunnels du Mont-Blanc) with 3.23% increase.
If you want to take the train instead of your car, the prices of SNCF TGV InOui tickets will also increase.
3° / The good news in 2024: Exchange EUR CHF
The Swiss Franc has never been so strong against the Euro, because we still have to end on a positive note, know that the year 2024 brings good news for the purchasing power of cross-border workers! The Euro reached its historic low against the Swiss Franc at the beginning of December. On Wednesday December 6, 2023, we recorded a record with 0.9416 CHF for 1 € (compared to 1.227 CHF for 1 € in December 2013). At the moment, the salary of cross-border workers is higher when converted into euros than into Swiss francs! Even if we cannot determine whether this trend will continue throughout 2024, but for the moment the Swiss Franc remains strong against the Euro, and cross-border workers are gaining from the exchange!
In conclusion, it therefore seems that the year 2024 will be marked by general increases, both on the Swiss and French sides. It is obvious that these price variations have a greater impact on the budget of the cross-border worker, who must manage his obligatory expenses as a Swiss worker (health, transport) and his daily life in France (food, travel). But their Swiss income still allows them to largely meet their needs and expenses despite the general increase in the cost of living, Switzerland remains an El Dorado for border workers in our Lake Geneva region!
DECORDIER immobilier agencies can help you with your real estate project:
- Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
- Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
- Grand-Baie : +230 268 2828 / e-mail : contact@decordier-immobilier.mu
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