France's IGF proposes reform of 543 civil service bonus schemes

The Inspection générale des finances (IGF) is calling for a rationalization of the 543 different bonus schemes within the French civil service. These bonuses now account for more than 25% of the total remuneration for approximately two million state employees.

Between 2015 and 2025, the total cost of these indemnities rose from approximately 12 billion euros to 19.1 billion euros, representing an increase of over 60%. The report highlights significant disparities between ministries; for instance, bonuses constitute 19% of compensation at the Ministry of National Education, compared to 67% at the Ministry of Europe and Foreign Affairs.

While these targeted bonuses have been used to offset inflation, they have grown at a much faster rate than base salaries, which increased by only 6.6% between 2020 and 2025 compared to a 32.7% rise in indemnity pay. The IGF has identified foreign residence allowances as a primary area for potential savings. This review comes as unions prepare for mobilization in late September to demand increases to the index point, which has remained frozen for three years.