France raises activity bonus for low earners while unemployment benefits stay frozen

The French family allowance fund (Caf) will increase the bonus component of the activity premium for households earning between the minimum wage and €1,700 net per month. About 4.6 million families are expected to receive an average boost of roughly €50 a month, on top of the 0.8 % annual indexation, with the higher payments reflected in July, August or September 2026 depending on the quarterly declaration period.

At the same time, the minimum unemployment benefit will remain unchanged at €32.13 per day, the first such freeze since 2016, despite a recent 2.41 % rise in the minimum wage. The decision, taken by the Unédic board after a tied vote, was opposed by trade unions who argued the freeze leaves job‑seekers to bear the brunt of inflation.