France: Sick Leave Allowance Calculations Changed on 1 July 2020

The Social Security Financing Act for 2020, reformed the method for calculating the daily sickness benefits provided for in the Social Security Code and abolished the increase in the daily sickness benefit rate when the individual has at least three children, as well as the mechanism for reviewing daily allowances in the event of a general salary increase. These changes apply to prescribed stoppages on or after 1 July 2020, as well as to those prescribed before 1 July 2020, which failed to reach 30 consecutive days on that date.

As from 1 July 2020, the daily sickness benefits correspond to a fraction of the income from previous employment, subject to contributions on the date of the interruption of work, retained within the limit of a ceiling threshold and reduced to a daily value.

The previous daily income was determined on the basis of the last payment or payments made prior to the date of the interruption of work, subject to a ceiling and reduced to a daily value. Insured persons with at least three children have, until now, benefited from a higher replacement rate at 66% (as opposed to 50% in principle) from the 31st day of payment. This bonus is abolished as of 1 July 2020. The replacement rate is now a single rate of 50%.

The rule, according to which the rate of the daily allowance may be revised in the event of a general increase in salaries, after the start of entitlement to health insurance for absences from work lasting more than three months, is also abolished as of 1 July 2020.