French employees are taking an increasing number of sick go away, and with the federal government going through unprecedented debt, it’s doubtless that new Prime Minister Michel Barnier may determine to chop again when his new finances is revealed this week.
Les Echos stories that for the primary six months of 2024, the price of French employees taking sick go away 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 go away as a consequence of work accidents is up by 11.3%. Shorter intervals of sick go away aren’t as excessive however nonetheless make up nearly half of the full quantity–is France quick turning into the sick man of Europe?
Curiously, 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 each day sick go away 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 are able to do the maths and inflation and demographics can’t clarify the remaining 42% of prices. Persons are occurring sick go away, and extra are staying on sick go away for longer. Thomas Fatôme instructed Les Echos, common director of CNAM, that it could possibly be that extra folks have persistent illness or that persons are making the most of the system.
Because the pandemic, additionally it is true that psychological well being issues have risen alarmingly, notably within the 18-24 yr outdated age group the place Le Monde stories that one in 5 younger French folks has a depressive dysfunction.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 go away, nationwide medical health 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 report €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 approach 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 might save the federal government as much as €600 million.
What would doubtless occur, although, is that employers could be pressured to make up the shortfall at the moment offered 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 might argue that it’s fairer for funds to kick in later in order that employees could be much less prone 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 may save as much as €950 million. Neither of those methods although, would go simply by way of the courts with no battle from staff and unions nationwide.
Within the meantime, the federal government will doubtless 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 form of long-term sick go away.
