Reducing the duration of compensation from 18 to 12 months maximum, reviewing the minimum time worked to benefit from unemployment, or even reducing the level of unemployment compensation: these 3 avenues are on the table for entry into force in 2024.
A year of many changes for the approximately 5 million people registered with France Travail. A new method of calculating unemployment benefit implemented by the social partners last fall must soon be validated by the government. It aims reduce the number of annual days compensated by 5 or 6. Until today, unemployment benefits are calculated by multiplying the number of days in the month with a daily allowance, calculated on the basis of past income and the duration of contributions. From now on, compensation should be calculated over 30 days, including months where there are 31 days.
On the other hand, these saved days will extend by as many days the rights of beneficiaries who are reaching the end of their compensation period. A sleight of hand which should save the unemployment insurance system 200 million euros per year.
But the rules will probably evolve even further. Prime Minister Gabriel Attal indicated on Wednesday that he wants a new global reform of unemployment insurance by next fall which would reduce the duration of compensation for the unemployed.
12 months of compensation?
The tenant of Matignon asked his Minister of Labor Catherine Vautrin to prepare new negotiations with the social partners on unemployment insurance, putting forward among the options a reduction in the duration of compensation from 18 to 12 months maximum.
Currently, the duration of compensation is 548 days, or 18 months for people under 53 years of age from the end date of their employment contract; 685 days, i.e. 22.5 months between the age of 53 or 54 on the end date of the employment contract and finally 822 days (27 months) for beneficiaries under the age of 55 on the end date of their employment contract.
This compensation period, reduced by 25% since February 2023, can be increased by 25% if the unemployment rate is above 9%. It is currently 7.5%.
Tougher rules for receiving unemployment?
Another avenue mentioned: the possibility of affecting the minimum time worked to benefit from unemployment. Today, we must at least work 6 months before being able to receive compensation from France Travail. In the future, the duration could therefore be extended.
In the draft agreement signed by the social partners in 2023, however, it is planned that the minimum duration of activity giving entitlement to unemployment insurance will increase from 6 to 5 months for new arrivals on the labor market. Another idea from the Prime Minister: act on the level of compensation.
This reform desired by the government takes place in a context where social spending is in the executive’s sights to fill the deficit which rose above 5% last year. If 10 billion euros of cuts have already been made in mid-February on the 2024 budget, additional savings will be found this year, warned the Minister of the Economy.