“We managed, at the end of a flash negotiation, to reach a conclusion this evening,” welcomed Medef representative Hubert Mongon. Employers and several unions managed to agree on new rules on unemployment insurance on Thursday evening. Slightly relaxed conditions for opening rights, reduction in employer contributions, revised compensation for cross-border workers… Here are the main points of the agreement for the next four years, and now open for signature by the social partners.
Conditions for granting rights
To register for unemployment insurance for the first time, you will need to have worked at least five months, not six months, over the last 24 months. The measure represents a cost of some 440 million over four years for the unemployment insurance system.
Seniors
The age limits giving entitlement to longer compensation are raised by two years. The measure would bring in some 350 million euros over four years, according to a calculation by Unédic. The level giving entitlement to a maximum of 22.5 months of compensation thus increases from 53 to 55 years and that giving entitlement to 27 months from 55 at 57 years old.
For other job seekers, the maximum duration of compensation is 18 months. The draft agreement also provides for shifting the age from which maintenance of the allowance is possible until the conditions for obtaining full-rate retirement are obtained.
This “maintenance of rights” system, from the legal retirement age, will be shifted “in line with the progressive evolution of the legal retirement age up to 64 years in 2030”.
Cross-border beneficiaries
Compensation for cross-border recipients represents an additional cost of around 800 million euros per year for unemployment insurance, according to Unédic. This is because their rights currently depend on their salaries abroad, which are generally significantly higher than in France.
The draft agreement intends to apply a coefficient to these rights according to the salary level of the country in which they worked, which should lead to a significant drop in their compensation in the vast majority of cases.
The signatories also ask for a review of the notion of “reasonable offer of employment” so that cross-border workers cannot refuse a position at the French salary level. Overall, according to a calculation by Unédic, 1.4 billion euros in savings should be generated over four years.
Monthly payment
The allowance paid will be the same each month, based on 30 days. Over a full year, the unemployed will lose five days of compensation, and even six in leap years. The measure should bring in 1.2 billion over four years.
Business creators/buyers
For job seekers who create or take over a business, the text provides for provisions to limit “windfall effects”, while currently the recipient can in certain cases receive aid even though they have taken up a permanent contract full time. The measure should bring in 1.4 billion over four years.
Reduction in employer contributions
The employer contribution for unemployment insurance will increase from 4.05% to 4% of gross salary. The measure will come into force from May 1, 2025. It is expected to cost nearly 1.5 billion euros over four years.
Degression
To take into account the particular situation of seniors, the reduction in unemployment benefit, which concerns high incomes, will no longer be applied from the age of 55, compared to 57 until now.
Seasonal
In order to better secure the situation of seasonal workers on the labor market, the affiliation condition is lowered to 5 months. The ceiling for non-worked periods taken into account in the calculation of the allowance is also lowered.
