French employees face financial strain amid rising costs

Financial pressure on French employees is driving interest in new compensation models and social assistance. An IFOP study conducted for Deel reveals that 83% of employees report facing difficulties making ends meet at the end of the month. Nearly half of those surveyed have experienced a bank overdraft in the last year, with 16% experiencing it more than six times. This vulnerability comes as new European regulations set for November 2026 aim to curb over-indebtedness by treating overdrafts exceeding 200 euros as consumer credit.

As a result, 62% of employees are considering “on-demand pay” as a way to access earned wages before the standard payday to avoid overdraft fees and manage unexpected expenses.

Separately, reports indicate that approximately 3.4 million eligible French households are not claiming the CAF activity bonus (prime d’activité). This monthly supplement, intended to support low-income workers, requires a formal request and is not granted automatically. While procedures have been simplified with pre-filled quarterly resource declarations for millions of beneficiaries, many eligible citizens remain unaware of the aid.