France to reduce workplace accident and occupational disease allowances

The French Ministry of Labour is preparing a decree to reduce daily allowances for workplace accidents and occupational diseases. Starting November 1, the ceiling for these allowances is proposed to drop to 1.8 times the Smic (minimum wage), down from the current level of more than three times the Smic.

This measure aims to balance the Social Security accounts for this specific branch, with an estimated savings of approximately 270 million euros by 2027. The Ministry estimates that while the change will affect 14% of work-related leave, these cases currently account for 28% of total expenditure.

To mitigate the impact, the Labor Code requires employers to provide a supplement to these allowances for employees with at least one year of seniority. The government believes this will help hold companies more accountable for workplace safety. The initiative follows a request for unions and employers to identify 800 million euros in savings for the occupational accident and disease branch.