The French government has introduced its 2027 social security funding bill (PLFSS) and finance bill (PLF) in the Council of Ministers. These bills aim to raise 43 billion euros through "corrective measures" to reduce the social security deficit by nearly half by 2027. The plan involves significant efforts from retirees and social insurance beneficiaries, as well as a slowdown in government spending, particularly outside of defense and debt management. Some ministries, including the Ministry of Labor, and state-run organizations such as France Compétences and France Travail, will need to make substantial cost reductions. Civil servants will also be affected, as the index point used to calculate part of their salary is being frozen. This decision has been met with strong opposition from the public sector, which has organized large protests to defend its purchasing power. The total number of civil servants employed by the state and its agencies is expected to decrease by 1,076 in 2027, excluding changes related to teacher training and military-related positions.
The government also plans to maintain housing assistance (APL) at the same level in 2027, an "exceptional" decision, and to impose restrictions on students from wealthy families. Registration for vocational training programs such as BTS or preparatory classes will be made payable for students who do not receive scholarships. Family allowances will also remain frozen. Additionally, non-European foreigners in regular legal status will need to reside in France for at least one year before being eligible for certain family benefits and housing assistance. Previously, they could access these benefits immediately.
To save 5.5 billion euros from retirees, the government will implement two mechanisms. Not all pensions will increase in line with inflation in January. Only those equal to or below 85% of the minimum wage—approximately 1,260 euros—will be raised to that level. The rest of the retirees will face a reduction in the tax exemption ceiling from 10% to 3,000 euros. This change deviates from the usual practice of adjusting pensions based on inflation.
The government also plans to tighten spending in the health sector. The increase in the Ondam (the national target for health insurance spending) will be limited to 2%. This includes maintaining average hospital rates at a stable level and achieving around 5 billion euros in savings. Other measures in the bill include an additional 200 million euros for firefighters and a tax on idle assets. The government has also proposed a tax on sugary products to combat obesity, a move that has drawn criticism from the food industry and bakers. It also aims to renew a tax on high incomes introduced in 2025. Companies will be required to contribute more to savings, with the government seeking to reduce exemptions from employer contributions or increase the taxation of highway and airport operators by 800 million euros.
French Government Unveils 2027 Social Security Funding Bill with Proposed Cuts and Taxes
AI-rewritten from original reportingHow it works
france-budgetsocial-securitypublic-spendingretireescivil-servantshealth-care



