This is how the new unemployment benefit for French cross-border workers will be calculated

Towards a significant reduction in unemployment benefits allocated to cross-border workers residing in France, in particular for those employed in Luxembourg. The news has the effect of a bomb, even if Unédic had marked the ground by highlighting, on October 2, the heavy impact of the compensation system for unemployed cross-border workers, and by calling vocally for reform .

An additional cost of 802.6 million euros was then highlighted, including 137.1 million euros for the sole case of workers employed in Luxembourg.

In the absence of a reform of the rules of compensation and compensation between States according to a simple modus operandi (the Member State which collected the contributions must pay the unemployment insurance benefits), France has engaged in a reform of its unemployment insurance by setting a target on that, costly for bloodless public finances, of cross-border workers.

Everything about the coefficient that would be applied

During the night from Thursday to Friday, the social partners (employers and unions) managed to draft by mutual agreement an amendment to the document drawn up at the end of 2023 which should implement the new unemployment insurance.

It provides, among other things, for the introduction of a coefficient to be applied according to the country of residence of the cross-border worker for the calculation of their unemployment benefit. This coefficient is designed to take into account the differences in average salaries between France and its neighboring countries.

Here is what it is, in the example of Luxembourg:

• the coefficient is calculated according to the ratio between the average salary level in France and the average salary level in the Grand Duchy;

• this coefficient is calculated on the basis of salary levels observed and published by the OECD, to which a correction coefficient of 1.1 is applied, “in order to limit excessive variations in the level of the allowance compared to what the beneficiary would have received without the application of this measure”;

• the coefficient will be re-evaluated annually “based on available statistical data”.

An illustrative example:

• according to the OECD, Luxembourg reports an average gross salary of 80,913 euros in 2023, compared to 43,592 euros for France;

• by applying the calculation method mentioned above, we obtain, according to our own operations, a coefficient of 0.59 (compared to 1 for France);

• it is this coefficient which will modulate the variable part of the unemployment compensation, the “reference daily salary” (the latter corresponding to the average salary received during the 24 months preceding the end of the employment contract, recalls the Frontaliers Grand association East)

• the classic rules for calculating compensation then apply.

In short, to calculate unemployment compensation for a cross-border worker, in the most common case it will be necessary:

• apply a coefficient of 0.59 to your daily income,

• and take into account 57% of the amount obtained (between legal floor and ceiling).

As we indicated earlier this Friday, the amendment which includes this new calculation method is now subject to the signature of the various employer and union organizations. If there are a sufficient number of signatures, this will then be translated into an unemployment insurance agreement. This is where the amount of the coefficient should be ratified. The text will then be sent to Prime Minister Michel Barnier for possible approval. It is ultimately the latter who will decide whether or not to approve this new agreement.