French staff are taking increasingly sick depart, and with the federal government going through unprecedented debt, it’s possible that new Prime Minister Michel Barnier may resolve to chop again when his new price range is revealed this week.
Les Echos stories that for the primary six months of 2024, the price of French staff taking sick depart elevated by 8.5% in comparison with 2023.
France’s nationwide medical insurance, la Caisse nationale d’assurance-maladie (CNAM), predicted a €17 billion spending plan in 2024, however that determine has nearly been spent. Stoppages for greater than three months have risen by 9.5%, and sick depart as a consequence of work accidents is up by 11.3%. Shorter intervals of sick depart are usually not as excessive however nonetheless make up nearly half of the entire quantity–is France quick changing into the sick man of Europe?
Curiously, inflation and demographics don’t totally clarify the story. France has an growing old workforce that will get bigger every single day, however between 2019 and 2023, this solely accounted for 19% of day by day sick depart figures. It prices to maintain folks off work so inflation additionally has a big effect, accounting for round 39% of the rise in value since 2019.
So, we will do the maths and inflation and demographics can’t clarify the remaining 42% of prices. Individuals are occurring sick depart, and extra are staying on sick depart for longer. Thomas Fatôme instructed Les Echos, common director of CNAM, that it may very well be that extra folks have power illness or that individuals are benefiting from the system.
Because the pandemic, additionally it is true that psychological well being issues have risen alarmingly, significantly within the 18-24 12 months outdated age group the place Le Monde stories that one in 5 younger French folks has a depressive dysfunction.
In France, when somebody is on sick depart, nationwide medical insurance kicks in on day 4 and pays 50% of their wage, assuming their wage is at most 1.8 occasions the minimal wage.
The French authorities is closely within the crimson. Le Monde stories that the nation’s debt reached a document €3.228 trillion, 112% of GDP when the EU units a most of 60%. Out of its European counterparts, solely Greece and Italy have a better debt-to-GDP ratio.
When Barnier delivers his draft price range this week, he must discover a option to save €40 billion. Phrase is that he’s planning to decrease this ceiling from 1.8 to 1.4 occasions the minimal wage, a plan that would save the federal government as much as €600 million.
What would possible occur, although, is that employers can be pressured to make up the shortfall presently supplied by social safety or insurance coverage firms. Finally, this may result in employers campaigning for a whole overhaul of the system in an try and fight the rising problems with absenteeism.
Employers may argue that it’s fairer for funds to kick in later in order that staff can be much less prone to resolve to take days off. Some want to see the system pushed additional and make the social safety advantages kick in on day seven as an alternative of day three; this could save as much as €950 million. Neither of those methods although, would cross simply by the courts with no combat from workers and unions nationwide.
Within the meantime, the federal government will possible crack down on the individuals who have been off work for greater than 18 months (round 30-40,000 folks) and examine the 7,000 docs prescribing this type of long-term sick depart.
