France, Plans to Reduce Civil Servants' Sick Leave Benefits to Cover Deficit

Review of Unpaid Days Increase from 1 to 3 and Salary Guarantee Reduction from 100% to 90%

The French government is expected to face strong opposition from the left-wing camp and labor unions as it pushes for measures to reduce sick leave benefits for public servants in order to cut the budget.

Orthostatic Hypotension and Dizziness. Photo by Getty Images Bank

According to the French daily Le Monde on the 28th (local time), the Michel Barnier government plans to soon submit a budget amendment to the National Assembly that reduces sick leave pay for public servants.

The amendment's core provision is that public servants will not receive pay for the first three days of sick leave, and thereafter will receive only 90% of their salary.

French public servants can apply for sick leave for up to one year continuously within a 12-month period. In such cases, the first three months are paid at 100% of salary, and the following nine months at 50%. Since 2018, only the first day of sick leave has been unpaid.

The Barnier government’s intention to reduce sick leave benefits for public servants stems from the judgment that absenteeism in the public sector has surged and budget cuts are necessary.

A government official explained, "The number of days public servants were absent has sharply increased over the past 10 years, rising from 43 million days in 2014 to 77 million days in 2022," adding that sick leave costs reached 15 billion euros (approximately 22 trillion won) in 2022.

The number of absentee days in the private and public sectors was generally similar in 2014, but in 2022, the private sector averaged 11.6 days per year, while the public sector averaged 14.5 days, showing a gap.

The Barnier government expects to save 1.2 billion euros (about 1.8 trillion won) annually by reducing sick leave benefits for public servants.

Since reducing sick leave pay is a sensitive measure for workers, the government must persuade the left-wing camp and labor unions within the National Assembly.

In addition, the Barnier government plans to further cut the budget for official development assistance to developing countries and to "rationalize" subsidies for electric vehicles to secure additional funds.

The French government aims to reduce the fiscal deficit, expected to be 6.1% of GDP this year, to 5% next year and below the European Union (EU) benchmark of 3% by 2029.

To achieve this, the government has submitted a budget to the National Assembly that cuts spending by 41.3 billion euros (about 61 trillion won) and raises an additional 19.3 billion euros (28.5 trillion won) in taxes through increased levies on large corporations and the wealthy.