France’s Social Security Budget Clears Parliament; Key Measures Take Effect January 1, 2026
Paris – The portion of France’s budget dedicated to social security spending has passed thru the National Assembly, with most new rules set to kick in on january 1, 2026. The vote clears a major hurdle, though the broader budget bill remains to be debated before year-end.
Finance ministers say the reforms mark a first step in stabilizing social spending,while signaling that the tougher budget package still ahead could shape the political agenda ahead of the 2027 elections.
Below is a concise rundown of the measures now approved for 2026 and the timing attached to each.
Pension Reform: Freeze Through 2028
The goverment has effectively suspend changes to the long-running pension reform until January 2028. the standard retirement age will be frozen at 62 years and 9 months, with the number of quarters needed for a full pension capped at 170. This freeze lasts until January 1, 2028, at which point policymakers will decide whether to scrap, lift, or maintain the current arrangement.
Pensions Increase: Basic Pensions Up 0.9%
The prior freeze on pension growth was rejected for current benefits. From january 1, 2026, the basic state pension and other social benefits will rise by 0.9%.
Surcharge on Supplementary Health Insurance (Mutuelles)
A new €1 billion levy on mutuelle insurers was approved, with expectations that the cost will be passed through to policyholders. The mutual insurance sector projects rate hikes in 2026 of roughly 4.7% for group contracts and 4.3% for individual policies.
Healthcare Fees for Non-EU Visitors
An amendment introduces a health charge for certain non-EU nationals, including some Americans, who are in France without a reciprocal healthcare agreement. Details remain to be settled in a forthcoming decree.
Prescriptions and Medical Appointments
Public backlash prompted lawmakers to abandon plans to double certain deductions and ceilings. In 2026, medication, GP visits, and related services should see no net change in fees, with other flat-rate contributions staying as they are today.
CSG Increase: Targeted to Investment Income
The generalised social contribution (CSG) on capital remains on the table,but the increase is narrowed to income from financial savings products.The policy excludes life insurance, home savings plans, rental income, and real estate capital gains, generating an estimated €1.5 billion in revenue.
Sick Leave Rules Tightened
New rules limit initial sick-leave notes to one month in most cases, with a renewal cap of two months on follow-up periods.
Constitutional Review
The Social Security Financing Bill still faces scrutiny by the Constitutional Council before publication in the Official Journal. Some provisions, notably the sick-leave limits, could be rejected at that stage.
Key Facts at a Glance
| Measure | What Changes | Effective Date |
|---|---|---|
| Pension age freeze | Retirement age frozen at 62 years 9 months; 170 quarters for full pension | January 1, 2026 – January 1, 2028 (freeze period) |
| Pensions rise | Basic state pension and other benefits up 0.9% | january 1,2026 |
| Mutuelles surcharge | €1 billion levy on supplementary health insurers | 2026 (rate changes likely in 2026) |
| Health fee for non-EU visitors | New charge for some non-EU nationals without healthcare reciprocity | To be defined by decree |
| Medical fees | Fees for prescriptions and visits stay the same in 2026 | January 1,2026 |
| CSG on investments | Targeted increase on financial savings income (excludes life insurance,PEL,etc.) | January 1, 2026 |
| Sick leave rules | Notes limited to one month initially; renewals capped at two months | January 1, 2026 |
| Constitutional review | Council review before publication; potential rejection of some measures | Pending Council decision |
Next Steps and What It Means
Analysts say the first half of the budget, covering social security, is now in place, setting the stage for the second half’s passage before year’s end. The pension freeze, in particular, is likely to shape political messaging ahead of the 2027 presidential race, as lawmakers weigh the balance between fiscal discipline and voters’ expectations for retirement security.
evergreen Takeaways
Even as specific numbers are debated,the core arc is clear: policymakers are recalibrating social protection spending while navigating public sentiment and political timelines. The outcomes will influence not only budgets but also public trust in long-term pension and healthcare policy in France.
How will these changes affect you? Are you watching the pension freeze or the mutuelle surcharge most closely? What outcome would you consider most favorable as the 2027 election approaches?
Share yoru thoughts in the comments below and tell us which provisions you expect to impact your household the most. Do you think the government should prioritize pension stability over broader tax reforms?
Disclaimer: This coverage summarizes proposed social security measures. For personal financial or legal advice, consult a qualified professional. Details remain subject to decree and constitutional review.
