France proposes sick leave reform to save €1 billion

The French government is proposing a structural reform of the sick leave compensation system to achieve €1 billion in savings. Labor and Solidarity Minister Jean-Pierre Farandou announced that the reform aims to redistribute social protection by reducing coverage for short-term absences while strengthening support for employees facing long-term illnesses.

According to the Ministry, the cost of compensated sick leave has reached €17.9 billion annually, with the number of compensated leaves rising by 10% in recent years to reach nine million in 2025. Farandou stated the goal is to “spend less and spend better” by combating abuses and encouraging companies to focus on prevention.

The government has called on social partners to reach an agreement on this reform by December 19. While specific mechanisms have not yet been finalized, potential measures under discussion include adjusting waiting periods (jours de carence), modifying daily allowance levels, or changing the funding split between Social Security and employers.