France Enacts Sweeping Policy Changes Impacting Social Welfare, Labor, and Housing
Key reforms, including revaluations of benefits, stricter unemployment rules, and the end of eviction protections, take effect as funding disputes and social concerns grow.
- The Revenu de Solidarité Active (RSA), prime d’activité, and Allocation aux Adultes Handicapés (AAH) have been increased by 1.7% to align with inflation, though 72 departments are refusing to fund the RSA hike due to budget disputes.
- Unemployment benefits are now calculated on a 30-day monthly basis, reducing annual payouts, and age thresholds for extended benefits have been raised, affecting older workers.
- Sick leave compensation in the private sector has been reduced, with the maximum daily amount dropping from €53.31 to €41.47, leading to potential financial strain for affected employees.
- The Prêt à Taux Zéro (PTZ) has been expanded to include new houses nationwide, offering varying financing conditions based on income, while notary fees have risen in several departments.
- The winter eviction moratorium ended on March 31, 2025, prompting fears of increased evictions as housing insecurity grows, with 24,000 eviction orders issued in 2024 alone.