French government delays pension increases and implements social security budget cuts

The French government has made the decision to delay pension increases originally scheduled for January 1, 2025, and instead implement them in July. This decision is part of a broader strategy to address the country's financial challenges and is expected to save 4 billion euros by anticipating lower inflation rates in the summer.

Minimum Old-Age Pension

The calculation method for the minimum old-age pension will remain unchanged to protect vulnerable pensioners.

Social Security Financing Bill for 2025

The Social Security Financing Bill for 2025 aims to manage the country's social security budget, with a projected total budget of 795 billion euros, an increase of 18 billion euros from 2024. The government aims to contain the deficit to 16 billion euros.

Reduction of Social Security Contributions Exemptions

In addition to pension adjustments, the government plans to gradually reduce exemptions from social security contributions, which amounted to 80 billion euros in 2023, resulting in an additional 4 billion euros in savings in 2025. The exemptions will be reduced for salaries at the level of the minimum wage and increased for salaries exceeding 1.3 times the minimum wage.

Health Insurance Spending

Health insurance spending will be limited to a growth rate of 2.8% in 2025, leading to a decrease in reimbursements for consultations and an increase in patient co-payments. The Finance Bill also addresses sick leave by lowering the reimbursement ceiling for indemnities paid by Health Insurance.

Examination of the Social Security Financing Bill

The examination of the Social Security Financing Bill is ongoing, with a formal vote scheduled for November 5 in the National Assembly. The government's goal is to stabilize public finances while protecting vulnerable populations.

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