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3mo ago

France Reduces Sick Leave Compensation for Public and Private Workers

New measures, starting in March and April, aim to curb rising social security costs by lowering sick leave indemnities for millions of employees.

La baisse des indemnisations des arrêts maladie, devrait être mise en place avec la publication, d’ici la fin de semaine, d’un décret gouvernemental.
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Depuis 2015, les dépenses liées aux arrêts maladie (hors Covid-19) ont augmenté de 52 %.

Overview

  • The French government will reduce sick leave compensation for public sector workers starting March 1 and private sector workers starting April 1.
  • Public sector employees will see their sick leave pay drop from 100% to 90% of their salary for the first three months of absence, with no changes for longer absences.
  • Private sector sick leave indemnities will be capped at 1.4 times the minimum wage (roughly €2,522.52 per month), down from 1.8 times, reducing maximum daily payouts by 20%.
  • These changes are part of the 2025 budget, aiming to address a sharp rise in sick leave costs, which reached €17 billion in 2024.
  • The new rules are expected to save the government €1.5 billion annually but will shift an estimated €800 million in costs to employers and insurance providers.