France : Unemployment insurance: 1.2 million people could see their benefit shrink

With the reform of unemployment insurance, 1.2 million people could see their daily allowance reduced and 500,000 the opening of rights canceled or delayed, according to conservative analyzes of Unédic.

After the announcement of the reform on June 18, the entourage of the Minister of Labor estimated between 600,000 and 700,000 the number of people “potentially impacted”.

The reform provides, inter alia, a new method of calculating the allowance. In addition, you will need to have worked six months in the last 24 months (instead of four months out of the 28) to qualify for compensation. Finally, for the “reloading of rights”, in a situation of cumulation unemployment, it will be necessary to have also worked six months to open a new right (instead of a month today).

500,000 people impacted
With these measures, Unédic, which manages unemployment insurance, anticipates three effects.

First effect: 500,000 people each year would be impacted by a delayed or canceled entitlement.

Second effect: the duration of the right will be shorter for 250,000 beneficiaries with the transition to 24 months for those under 53 years. These two figures can not be added, “because some of the recipients will be impacted by both effects,” warns Unédic.

Third effect: a lower daily allowance for 1.2 million people who worked intermittently, ie half of the entrants.

A complex reform
But, insists Unédic, “it is difficult at this stage to estimate the population concerned”. It has transferred these “first benchmarks” to trade unions and employers this week based on the elements communicated in the press kit on June 18.

“It is not at this stage a comprehensive analysis and a consolidated estimate of the impacts of the expected decree,” says the organization, which plans to release in the autumn a further study, including the financial plan .

The reform also provides for the compensation of resigners and self-employed workers, the introduction of a “malus bonus” on short-term contracts in certain sectors and a cut-off of 30% in the 7th month for salaries above € 4,500 gross.

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