Skip to main content
ALERT / NOVEMBER 24, 2025
France implements significant reduction in social security coverage for sick leave
5 MIN READ
France recently implemented a significant reform reducing the amount of sick leave compensation provided by social security. The income ceiling for calculating daily allowances has been lowered from 1.8 times the legal minimum wage (SMIC) to 1.4 times the SMIC, effective from 1 April 2025. The change marks a shift in how sick leave benefits paid by social security are calculated, with implications for both employees and employers.
Background
The change was introduced through Decree No. 2025-160 of 20 February 2025, which applies to sick leave compensation starting on or after 1 April 2025. The reform is part of broader efforts to reduce public spending and address a growing deficit in the healthcare budget.
Sick leave benefits in France are paid by social security through the daily allowance system known as IJSS ("Indemnités Journalières de Sécurité Sociale"). These allowances are only paid starting from the fourth day of sick leave, following a three-day waiting period. IJSS is payable for 360 days over three consecutive years. For more details on employee eligibility for IJSS and how it is calculated, please refer to Service Public’s official website here (opens a new window).
In addition to social security benefits, employees may be eligible for additional sick leave benefits paid by their employers and group risk insurance, known as prévoyance in France:
If an employee meets certain conditions, the employer is legally required to provide a top-up allowance, such that the employee’s total sick leave compensation (comprising both IJSS and the employer top-up) meets a specific percentage of their gross salary. This percentage ranges between 66.66% to 90%, depending on the employee’s length of service. The maximum duration of the employer top-up ranges from 60 to 180 days, also depending on seniority. To qualify, the employee must have at least one year of service, submit a medical certificate within 48 hours of starting sick leave, be receiving IJSS, and be receiving treatment in France or another member state of the European Economic Area. For more details, please refer to Service Public’s official website here (opens a new window).
Employers may also be required to provide additional sick leave benefits based on any applicable collective bargaining agreements or employment contracts.
Employer-sponsored supplementary insurance plans, which may be provided at the employer’s discretion, could provide additional top-up allowances for employees during short-term sickness. Coverage levels and waiting periods vary depending on plan design. While not mandated by law for all employees, certain collective agreements (e.g., for executives) require employers to provide coverage.
Key details
The income ceiling used to calculate IJSS for sick leave has been reduced.
Previously, employees were entitled to social security-paid IJSS of up to 50% of gross salary, capped at 1.8 times the legal monthly minimum wage (SMIC) (EUR 1,801.80 gross per month in 2025), which equated to a monthly salary of EUR 3,242.31 for a full-time employee working 35 hours per week.
As of 1 April 2025, the ceiling has been lowered to 1.4 times the SMIC, which currently equates to a monthly salary of EUR 2,522.57 for a full-time employee working 35 hours per week. The IJSS remains at 50% of gross salary, but the maximum IJSS for 2025 has decreased from EUR 53.31 gross per day to EUR 41.47 gross per day.
Employer action: ACT
The change has led to a reduction in IJSS coverage for sick leave for employees earning above the new income ceiling, unless their employer provides a supplement. Additionally, it imposes a greater financial burden on employers if they are required by law, collective bargaining agreements, or employment contracts to top up employee salaries during sick leave.
The change may influence the future cost of employer-sponsored life and disability insurance plans that top up sick leave benefits, as insurers will compensate for the lower IJSS reimbursement. While this does not automatically alter plan design, the impact is likely to be reflected during future renewal premium rates. Market trends already show higher than average increases (around 5–8% in 2025–2026) across many group risk plans, and reduced IJSS ceilings may contribute to continued upward pressure in future years. The extent of this impact will vary by insurer and client profile.
Employers may wish to monitor how these changes could influence future renewal discussions, particularly regarding group risk pricing trends. While no immediate plan changes are required, it is advisable to stay aware of potential cost impacts and engage with insurers proactively during renewal periods.
Please contact your Lockton Consultant if you wish to discuss the change and its potential impact on your existing life and disability insurance plans.
Further Information
Written in collaboration with:
Jeremy CARNERO
Manager International / International business manager |
MIA Assurances
