Unemployment insurance: compensation conditions, employment of seniors… what is contained in the reform project presented this Sunday ?

La nouvelle réforme de l'assurance chômage doit être présentée par Gabriel Attal ce dimanche 26 mai. MAXPPP – Samuel Coulon

While Prime Minister Gabriel Attal will present the unemployment insurance reform this Sunday, May 26, the Minister of Labor Catherine Bautrin revealed its outlines to the social partners this Wednesday, May 22.  

A target of 3.6 billion euros in savings and 90,000 additional people in employment: the contours of the unemployment insurance reform , which will be revealed this Sunday, May 26, are becoming clearer.

The Minister of Labor Catherine Vautrin, who began to receive the social partners on Wednesday May 22, revealed the avenues that hold the rope.

Tightening of affiliation conditions

First direction: the tightening of affiliation conditions: it will now be necessary to have worked eight months during the last 20 months, instead of six months during the last 24 months currently, to receive benefits. nbsp;

A reduction in the reference period for the calculation of rights which should lead to a reduction of at least three months in the maximum duration of these rights, today 18 months.

Since 2022, the rights of the unemployed vary depending on the economic health of the country. Thus, the duration of compensation for the unemployed is reduced if the unemployment rate is lower than 9% (it is today 7.5%).

The increase from six to eight months of work to receive compensation would particularly affect recipients under the age of 25 or those leaving a fixed-term contract or temporary contract.

Extended bonus-penalty

The extension to more sectors of the bonus-malus, a system to fight against the abuse of short contracts, is also among the avenues as well as a further reduction in the duration of compensation if unemployment falls below 6.5% compared to 7.5% currently (this would generate 3 billion euros in additional savings).

For seniors aged 57 and over, the government wants to create a "bonus upon return to employment"and at the same time cap compensation for unemployed people close to retirement. When people over 57 find a job, they will have the right to keep their unemployment benefit in addition to their new salary in a more favorable framework than currently.

Some of these measures will apply from July 2024, others only from December.

A hotly contested reform

On the union side, the reform is hotly contested. For FO number one Frédéric Souillot, who saw Ms. Vautrin at midday, "take things by hitting job seekers or reducing the possibilities to be compensated is not to take things the right way".

Her CFDT counterpart Marylise Léon also criticized on BFM Business a reform to "make even more savings" by picking "the pockets of the unemployed".

"It's a very harsh reform" which will affect "20% of job seekers among the most vulnerable and precarious", said the negotiator of the first union Olivier Guivarch.

On the employer side, however, the president of Medef Patrick Martin confirmed his "support for the reform" but told Catherine Vautrin his opposition "to a generalization or even a simple extension of the malus bonus" , and by asking for a reduction in the employer contribution for unemployment insurance.