Towards a 4% increase in pension contributions
The cap decided by the Barnier government as part of the 2025 Social Security draft budget represents “an additional cost of around 800 million euros in a full year for companies and their welfare plans”, according to calculations by the CTIP, which brings together joint welfare institutes (managed by employers and unions). This additional cost will result in “a 4% increase in collective welfare contributions” paid by companies and employees, indicated the CTIP.
The CTIP estimate does not agree with the indications given by the government, which put the savings made by Health Insurance at 600 million euros. The CTIP was unable to explain this difference. “Our estimates come from the consolidation of our members’ portfolios. We have no information on the details of the government's calculations,” said a CTIP representative.
For recent employees, the loss will be dry
To replenish the Social Security coffers, the government wants to cap the amount of daily allowance paid by the Health insurance for an employee on sick leave. Many employees will not see the difference immediately, to the extent that the reduction in compensation will be compensated directly by their company or indirectly via the welfare contract that it has taken out for them.
For certain employees, however – those whose employment contract is less than a year old in particular, employees of private employers -, the loss will be dry, the employer not being required to supplement the daily allowances paid by Health Insurance. In total, according to CTIP calculations, the measure represents an additional cost of 600 million euros for those involved in the insurance sector.
Up to 250 euros per month
The rest, i.e. 200 million, corresponds to sums paid directly by companies outside of a welfare agreement, or to the dead loss of employees not benefiting from any compensation. For these employees, the deadweight loss could reach up to 250 euros per month (employees paid 1.8 SMIC and above, not benefiting from compensation from their employer), notes the CTIP.
