Unemployment insurance reform: towards a gradual application between October and December

We know even more about the implementation of unemployment insurance reform. The latter, which has been suspended due to the Covid-19 crisis, is “absolutely indispensable,” Jean Castex said on Wednesday (September 8th) after a government return seminar at the Elysée. The Prime Minister described the reform as one of the answers to “recruitment difficulties”, in the sense of “restoring order to a fundamentally useful regime, but from which the rules had gradually derived”.

Above all, the government envisages a “gradual” application, “between October 1 and December 1” 2021, Jean Castex said. Specifically, the new method of calculating unemployment benefits – the flagship measure of the reform – should come into force on 1 October. Then, the rules of two other measures of the reform must be tightened by December 1: it is the degressivity of unemployment benefits for the highest incomes and the conditions for opening new rights.

As a reminder, the conditions of application of these last two components (degressivity and conditions for the opening of new rights) are subject to a “return clause to the best fortune”. Two indicators are taken into account to know and the economic situation is improving. The first is the evolution of the number of job seekers registered in the Employment Division in category A (without any activity). The second is the level of hiring. In order to see an improvement in the labor market, you will need to:

  • the number of jobseekers registered in the Employment Division in category A decreased by 130,000 over six consecutive months;
  • the number of pre-employment statements for contracts of more than one month, excluding interim, is more than 2.7 million over the last four months.

Both measures “could go into effect on December 1 if both indicators are green at the same time,” the Ministry of Labor said. It will thus be able to decide to tighten the conditions for opening up unemployment rights, by moving them from four A six Moïse over a reference period of twenty-four months. The same goes for degressivity: today, unemployment benefits for the highest earners are falling from ninth month compensation. In the event of a return to good fortune, the government will decide to speed up this process in the process of starting the computer. seventh month compensation.

As a reminder, the fourth measure of the reform of unemployment insurance (the bonus-malus on short contracts) will be fully effective from September 1, 2022. Thus, the bonus-malus will be calculated from the end of the contract observed between on July 1, 2021 and July 1, 2022. And from September 1, 2022, companies abusing short-term contracts will see their unemployment insurance contributions increase (up to 5.05%), while good students will experience a reduction in contributions (reduction of up to 3%) *.

* The employer’s contribution rate for common law unemployment insurance is 4.05%.

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