The French government has announced changes to the way the prime d'activité, a financial support for low-income workers, is calculated, starting in 2027. This allowance, designed to help workers with modest incomes, will no longer automatically increase in line with inflation, as had been the case in previous years. According to budget documents, the government plans to adjust the "net social amount," a figure used to determine eligibility for the allowance. This amount, currently listed on pay slips, is used by the National Family Allowance Fund (Caisse d'Allocations Familiales) and the Social Security Fund (Caisse des Dépôts et Consignations) to calculate the benefit. The proposed changes would include factoring in employer contributions to certain employee benefits, such as health insurance, life insurance, and supplementary pensions. Under the new rules, an employee whose employer covers part of their health insurance might see their calculated income increase, even if their actual salary stays the same. However, this could lead to a reduction in the prime d'activité because the allowance is often reduced as income rises. The government justifies this by saying that two workers with the same salary might be in different financial situations—one with employer-funded health insurance and the other without. It should be noted that employers are already required to cover at least 50% of the mandatory health insurance for their employees. This reform could be combined with a planned freeze on the prime d'activité for 2027, which was confirmed in late September by the Minister of Labor, Jean-Pierre Farandou. However, the final details of the freeze may still be adjusted during parliamentary discussions. The prime d'activité is a significant program: in the third quarter of 2025, around 4.52 million households received it, and the total cost reached about 10.7 billion euros in 2025. According to budget documents, the changes to the calculation method are expected to save more than 300 million euros in 2027, as the government aims to control rising costs. The prime d'activité was introduced in 2016 to support low-income workers and encourage employment. In 2024, the average monthly payment per household was 190 euros, according to the National Family Allowance Fund. The government also emphasized that the changes to the calculation method are part of a "regulatory reform" aimed at ensuring fairness between workers who receive employer-funded benefits and those who do not. While the Ministry of Labor said the changes should not lead to a large number of people losing the benefit, it remains unclear how many recipients will see a reduction in their allowance, or even lose it entirely. The government has not yet provided specific numbers on how the changes will affect individual beneficiaries.