France decides against raising unemployment benefits on July 1

The French unemployment insurance agency Unédic announced that unemployment benefits will not be increased on 1 July 2026 after its board meeting resulted in a tied vote, 25‑for‑25, leaving no majority for a raise. The decision marks the first time in ten years that the benefit level remains unchanged; the last adjustment was a 0.5 % increase on 1 July 2025.

The minimum daily allowance will stay at €32.13 and the average monthly payment remains around €1,040, with 2.7 million people receiving benefits in the fourth quarter of 2025. Trade unions representing five organisations proposed a 2.41 % increase – matching the minimum‑wage rise and inflation – but employer groups, led by the Medef, argued that public finances and the Unédic fund, projected to reach €62 billion in debt by the end of 2026, cannot support the raise. The unions criticised the decision as unacceptable for the nearly two million jobseekers affected, while the Medef called for fiscal prudence and a reduction of Unédic’s debt.