France adjusts work stoppage benefits

Starting November 1st, some employees in France may see a decrease in their work stoppage benefits, according to a new measure introduced by the government. This change was decided in September last year and formalized through a decree published on September 30th.

Measure aims to reduce deficit

The measure aims to reduce the deficit by implementing budgetary savings of around 270 million euros, drawn from the daily allowances of social security (IJSS) for certain work stoppages. This is not linked to current or previous budget debates.

New income ceiling for IJSS

The modification affects the annual income ceiling used to calculate IJSS. Previously, the daily earnings limit was set at 0.834% of the annual social security ceiling (PASS), which was 48,060 euros in 2026, resulting in a daily limit of 400.82 euros. The new decree reduces this percentage to 0.226%, lowering the daily earnings limit to 108.62 euros.

Impact on higher earners

As a result, employees earning more than 1.8 times the minimum wage (SMIC) will experience a decrease in their IJSS. For instance, a person earning 12,193 euros gross per month will see a reduction of 175.32 euros in their IJSS for the first 28 days of sick leave and 233.76 euros from day 29 onwards.

Government justification

The government justifies this change by noting that it affects a minority of people, with only 14% of work stoppages for work-related accidents or occupational diseases involving individuals earning more than 1.8 times the SMIC. However, these cases account for 28% of the expense.

Work-related accident benefits unchanged

It is important to note that the current calculation method for employees on work-related accidents or occupational diseases remains unchanged. From day 1 to day 28 of the sick leave, health insurance pays 60% of the reference daily salary (SJR), and from day 29 onwards, 80% of the SJR. The remaining portion is typically covered by the employer.

Favorable treatment for occupational diseases

Despite the new cap, the IJSS for work-related accidents or occupational diseases remains more favorable than the cap for ordinary sick leaves, which corresponds to 1.4 times the SMIC.