French staff are taking an increasing number of sick depart, and with the federal government going through unprecedented debt, it’s seemingly that new Prime Minister Michel Barnier would possibly determine to chop again when his new finances is revealed this week.
Les Echos reviews 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 health 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 attributable to work accidents is up by 11.3%. Shorter durations of sick depart usually are not as excessive however nonetheless make up nearly half of the entire quantity–is France quick turning into the sick man of Europe?
Apparently, inflation and demographics don’t totally clarify the story. France has an ageing workforce that will get bigger each 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 huge impact, accounting for round 39% of the rise in value since 2019.
So, we will do the mathematics and inflation and demographics can’t clarify the remaining 42% of prices. Persons are occurring sick depart, and extra are staying on sick depart for longer. Thomas Fatôme informed Les Echos, common director of CNAM, that it might be that extra folks have power illness or that persons are profiting from the system.
Because the pandemic, it’s also true that psychological well being issues have risen alarmingly, notably within the 18-24 yr previous age group the place Le Monde reviews that one in 5 younger French folks has a depressive dysfunction.
In France, when somebody is on sick depart, nationwide medical health insurance kicks in on day 4 and pays 50% of their wage, assuming their wage is at most 1.8 instances the minimal wage.
The French authorities is closely within the crimson. Le Monde reviews 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 the next debt-to-GDP ratio.
When Barnier delivers his draft finances 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 instances the minimal wage, a plan that might save the federal government as much as €600 million.
What would seemingly occur, although, is that employers could be compelled to make up the shortfall at present supplied by social safety or insurance coverage corporations. In the end, this would possibly result in employers campaigning for an entire overhaul of the system in an try and fight the rising problems with absenteeism.
Employers might argue that it’s fairer for funds to kick in later in order that staff could be much less more likely to determine to take days off. Some wish 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 move simply by the courts with out a battle from workers and unions nationwide.
Within the meantime, the federal government will seemingly 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.