Chapter X: Unemployment Chapter X: Unemployment
Applicable statutory basisAgreement of 31 December 1958.
Insurance:
Art. L. 351-3 to L. 351-8 of Labour Code;
Agreement of 1 January 1997.
Assistance (Régime de solidarité):
Art. L. 351-9 and L. 351-10 of Labour Code.
Existing schemesUnemployment insurance (Assurance chômage).
Unemployment assistance (Régime de solidarité).
Field of applicationUnemployment insurance (assurance chômage): All salaried workers.
Unemployment assistance (régime de solidarité): Unemployed having exhausted their entitlement to contributory benefits and certain special groups (released prisoners, expatriated, repatriated or stateless workers, political refugees and asylum seekers, victims of industrial accidents or occupational diseases).
Total unemploymentUnemployment insurance (assurance chômage):
Not to have left previous employment voluntary, without good cause;
Not to be seasonally unemployed;
To be looking for work and physically able to work;
To be registered for work;
To be under the age of 60. However, if at this age the person concerned has not paid insurance contributions for long enough to justify receipt of the old-age pension at the full rate of 50%, the indemnity is maintained until the period is achieved, and at the latest up to the age of 65.
Unemployment assistance (régime de solidarité):
For the solidarity scheme, in addition:
Long term unemployed: certain conditions of previous activity and of means (special solidarity allowance);
Special other groups: means test (integration allowance).
Insurance: at least 4 months insurance in last 8 months.
60 years, if the number of contribution quarters necessary for old age pension has been satisfied; in any case an upper limit of 65 years.
Assistance:
ceiling of monthly income:
Long term unemployed FRF 5,769.40 (EUR 880) for single persons, FRF 9,066.20 (EUR 1,382) for a couple.
Other special categories: Integration allowance (allocation d'insertion) FRF 5,225.40 (EUR 797) for single persons, FRF 10,450.80 (EUR 1,593) for a couple.
Insurance:
Not during paid holidays and waiting period of 8 days for payment and waiting period in event of consecutive rupture of work contract having resulted in the payment of a sum exceeding the statutory amount for such compensation. This waiting period is equal to the quotient of half the supralegal compensation amount for the daily reference wage. The waiting period may not exceed 75 days.
Assistance:
Immediate payment.
BenefitsEvery day.
Insurance:
Duration of payment of the single degressive benefit varies according to length of insurance and to age; minimum: 4 months, maximum: 60 months.
Assistance:
Long term unemployed: Benefits given by periods of 6 months, for indefinite time.
Special groups: maximum 1 year.
Insurance: Earnings on which contributions have been paid for last 12 months.
Insurance: 75% of former daily salary.
Four times the ceiling of social security, FRF 57,880 (EUR 8,824) per month.
Insurance:
For minimum insurance period of at least 6 months:
Full rate:
40.4% of reckonable daily wages + FRF 60.76 (EUR 9.26) per day or 57.4% of the reference daily wage. The option most favourable to the claimant is applied. Minimum: FRF 148.13 (EUR 23) per day.
Downward sliding scale:
The full rate benefit is decreased at 4 monthly intervals, but a minimum allowance is guaranteed: FRF 106.14 (EUR 16) per day, FRF 133.11 (EUR 20) per day for people aged over 52 under certain conditions relating to previous employment.
For minimum insurance period between 4 and 6 months: The amount of benefit is calculated at the full rate (above) less 25% (general rate).
Assistance:
Special benefit for long term unemployed (allocation de solidarité spécifique aux chômeurs de longue durée): FRF 82.42 (EUR 13) per day. FRF 118.39 (EUR 18) per day if over 55 years or over 57 years under certain conditions regarding former working activity.
Insertion benefit (allocation d'insertion):
FRF 58.06 (EUR 8.85) per day.
None.
Benefits for older unemployed and early retirementEarly retirement (préretraite) from State funds after 57 years (exceptionally 56 years of age).
Allowance for older unemployed (allocation chômeur âgé, ACA) without minimum of age; 160 quarters of old-age insurance are required.
Allowance for job replacement (allocation de remplacement pour emploi, ARPE) with 58 years and 160 quarters of old-age insurance or 55 years with 172 quarters. 56 or 57 years with 42 years of old-age insurance for active persons since the age of 15 or 16.
Special Waiting Allowance (allocation spécifique d'attente, ASA) for beneficiaries of the special allowance for long-term unemployed (allocation de solidarité spécifique) or the guarantee of minimum resources (revenu minimum d'insertion).
Early retirement (Préretraite:
At least 57 years (exceptionally 56 years of age).
Contributed to social security during 10 years in a capacity as wage or salary earner.
Provide proof of at least one full year of as member of the enterprise.
Not to be entitled to an old-age pension for incapacity.
For unemployed workers over 60 years: insufficient insurance period.
Allowance for older unemployed (Allocation chômeur âgé, ACA): payment is subject to the same conditions as for unemployment benefits plus 160 quarters of insurance in the old-age scheme. Granted only until 60 years of age.
Allowance for job replacement (allocation de remplacement pour emploi, ARPE): Salaried workers aged at least 58 and with 160 quarters of old-age insurance, or aged 55 with 172 quarters, may with the accord of their employer, cease their salaried activity. In exchange of their departure, the employer must commit himself to recruit new workers. The salaried worker concerned must have a valid contract of employment, prove 12 years of contributions to the unemployment insurance and must have worked a minimum of 12 years for his last employer. The benefit will be paid out until he is 60 years.
Special Waiting Allowance (Allocation spécifique d'attente, ASA): Age under 60 and proof of 160 quarters of insurance.
Early retirement: 65% of the portion of daily earnings taken as reference lower than the social security contribution ceiling and 50% for the portion of the salary included between the ceiling and 2 times the ceiling.
Allowance for aged unemployed (ACA): the amount is determined in a similar way as for the unemployment benefit. The fixed benefit is subject to no degressive reductions until the recipient is 60 years old.
Allowance for job replacement (ARPE): 65% of the reference salary.
Specific waiting allowance (ASA): flat-rate monthly amount of FRF 1,750 (EUR 267) ensuring a monthly total income of at least FRF 5,000 (EUR 762).
Partial unemploymentReduction of hours usually worked below legal limit, because of economic, accidental or technical reasons.
To have a weekly wage equal or higher to 18 times the minimum wage (SMIC).
Not being in seasonal unemployment.
Not being unemployed because of strike.
Allowance paid by employer: 50% of gross wages per hour, with minimum of FRF 29 (EUR 4.42) per hour.
Reimbursement of employer by state of FRF 18 (EUR 2.74) per hour.
No accumulation of insurance benefits with unemployment assistance.
Insurance:
Accumulation possible of replacement income with old-age benefit after the age of 60, within certain limits.
No accumulation with benefits in cash of sickness insurance.
Assistance:
No accumulation with benefits in cash of sickness insurance, or with invalidity pensions for total incapacity to work.
Accumulation possible with old-age benefits if condition of maximum of resources is met.
For both schemes: possibility of partial accumulation with earnings from reduced activity (conditions of accumulation are different).
Taxation and social contributionsBenefits are liable to taxation after deduction of 10% and then of 20%.
Tax is levied on benefits where taxable, annual net income exceeds a certain ceiling:
Single person: FRF 41,691 (EUR 6,356)
Couple with no children: FRF 68,061 (EUR 10,376)
Couple with one child: FRF 81,111 (EUR 12,365)
Couple with two children: FRF 94,161 (EUR 14,355).
See Table I: Financing, Other special contributions.