Metrolink users will face inflation-busting increases of 4.2% in January.
The steep rise in fares, which comes after weeks of complaints from commuters over poor service on the lines, is in order to meet operating costs and contribute
The fund is currently investing in extensions and improvements to the network.
The annual Metrolink fares review has been agreed by members of the Transport for Greater Manchester Committee.
Councillor Andrew Fender, Chair of the Transport for Greater Manchester Committee, said: “At a time when local authorities are facing significant budget pressures, it is vital that Metrolink can cover its own operating costs without any burden on the public purse.
“The Retail Price Index indicates how much operating costs have changed in the past year in real terms, and fares increase by that level to meet those costs. Put simply, what cost £100 last year now costs £103.20, and that needs to be accounted for.”
Metrolink are currently in the final stages of replacing 32 of the original trams with new vehicles as part of the near-£200-million fleet investment and have opened a second operations HQ in Trafford.
Cllr Fender said: “By 2016, the network will have trebled to 60 miles in size, with 94 trams serving 93 stops across a number of new lines.”
The decision to increase fares has been made in line with customer feedback and the launch of smart ticketing on the Metrolink network in 2014.
The changes being made within that overall average are focused on making fares simpler, more consistent and more transparent.
In addition, prompted by customer feedback, the New Islington stop will move into the City Zone, offering greater value for city centre residents.
Quarterly season tickets and four-adult day Travelcards will be withdrawn in order to make the range of tickets Metrolink offers consistent with other modes of transport.
The fare prices were also increased by the 4.2% at the start of 2013, generating a lot of fury from passengers.
Since opening up a Twitter account, Metrolink has recently been on the receiving end of abuse from members of the public who are unsatisfied with their services.
Some users have made parody Metrolink accounts to express their views on the service
Details of specific 2014 ticket prices will be available on the Metrolink website from Monday.
