French social security and labor benefit reforms

France is implementing several legislative reforms aimed at reducing social security expenditures and balancing public accounts.

In late August 2026, the Ministry of Labour announced plans to reduce daily allowances for workplace accidents and occupational diseases. Proposed to take effect on November 1, the measure would lower the allowance ceiling from over three times the Smic to 1.8 times the Smic. This initiative is expected to save approximately 270 million euros by 2027. To assist employees with at least one year of seniority, the Labor Code requires employers to provide a supplement to these allowances.

Following this, new regulations under Law No. 2026-470 were introduced regarding unemployment benefits. Starting September 1, 2026, the duration of benefits for employees leaving via a ‘rupture conventionnelle’ (mutual agreement termination) will be reduced. The new maximum indemnification periods are set at 15 months for individuals under 55 and 20.5 months for seniors. This reform is projected to generate annual savings for Unédic estimated between 600 and 800 million euros.