Unemployment insurance: reduction in the duration of compensation, “bonus-malus”… Gabriel Attal unveils the new rules of the reform

Unemployment insurance: reduction in the duration of compensation, “bonus-malus”… Gabriel Attal unveils the new rules of the reform
Unemployment insurance: reduction in the duration of compensation, “bonus-malus”… Gabriel Attal unveils the new rules of the reform

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In an interview to be published this Sunday, May 26 in the Tribune Dimanche, Prime Minister Gabriel Attal revealed the broad outlines of the new unemployment insurance compensation rules to “move towards full employment”.

Unemployment insurance compensation rules will be tightened from 1er December “to move towards full employment” and “to value work even more”, said Gabriel Attal in an interview to be published this Sunday, May 26, in La Tribune Dimanche. An announcement far from being a surprise, the Prime Minister having held meetings with the social partners since Wednesday.

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Unemployment insurance: tightening of affiliation conditions, extension of the bonus-malus… what could change for you with the reform

The leads given this week by the Minister of Labor Catherine Vautrin are now confirmed. Thus, the duration of compensation will be reduced to 15 months “under current conditions”, that is to say if the unemployment rate remains below 9%, for unemployed people under 57 years old. And you will have to have worked 8 months over the last 20 months to be compensated, compared to 6 months over the last 24 months currently, specified the head of government.

An entry into force on 1er December

Gabriel Attal specified that the government would issue a decree on 1er July so that the reform “can come into force on 1er December”. Changing the compensation rules requires updating the information systems of France Travail (formerly Pôle Emploi) which cannot be done overnight.

The Prime Minister also confirmed the creation of a “senior employment bonus”. Thanks to this measure “an unemployed senior who returns to a job that is less well paid than their previous job will be able to combine their new salary with their unemployment benefit” and “will thus regain their initial remuneration, for one year”, explained Gabriel Attal. The unions had reported that salaries would thus be compensated up to 3,000 euros. The bonus-malus system on short contracts, criticized by employers and currently limited to seven sectors of activity, will be the subject of an examination on “the advisability of extending it based on the evaluation to drive”.

3.6 billion euros in savings

Finally, the Prime Minister confirmed the addition of a new threshold to reduce the duration of compensation, already reduced by 25% since February 2023, even more if the unemployment rate falls below 6.5%. He did not specify how much. The CGT had reported that this duration would be reduced in this case by an additional 15 percentage points, or 40%, which would bring it down to 12 months.

“To prepare for the economic rebound of 2025 that the forecasters are announcing to us, I hope that the rules will be even more incentive when growth picks up again and the unemployment rate decreases,” said Gabriel Attal. For the Prime Minister, “it is not a reform of the economy, but of prosperity and activity”. “The gain will be measured by a greater number of French people who will work. And therefore more funding for our system,” he assured.

A “criminal” reform

According to the Ministry of Labor, the government expects 3.6 billion euros in savings from the reform and projects an increase “by 90,000 in the number of people in employment”.
Tightening the affiliation condition alone would generate 2.8 billion in savings, according to the CGT.

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Unemployment insurance reform: the government expects “3.6 billion” euros in savings and “90,000 jobs” created

“It’s really an anti-young person measure,” reacted Denis Gravouil, the negotiator on unemployment insurance at the Montreuil central office, for whom the absence of a decision to extend the bonus-malus shows that “the government is totally aligned with the interests of employers.

Using the words used according to him by Sophie Binet before Catherine Vautrin, he judged that the reform was “criminal”, citing studies on the health of the unemployed and those around them which show “the suicide rate of unemployed people at the end of their rights is twice as high as in the employed population.

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