France: Changes to state benefits announced

Employer action code: Act

The 2026 Social Security Financing Law (Loi de Financement de la Sécurité Sociale 2026 – LFSS) introduces an “additional birth leave” benefit for new parents, suspends the unpopular 2023 state pension reforms until 2028, and amends calculation of the social security retirement pension to improve benefits for women who had one or more children, among other changes. The LFSS was published in the Official Journal on December 31, 2025.

Key details

Changes introduced by the LFSS (effective January 1, 2026, unless otherwise noted) include the following:

The gradual increases in the minimum retirement age for a social security pension (currently 62 years and nine months) and insured employment period (170 to 172 quarters) for individuals born between 1964 and 1968 established by the 2023 pension reforms, are suspended through 2027. In effect, the minimum retirement age of 64, which initially applied to those born in 1968 or later, will ultimately apply to those born in 1969 or later, for pensions claimed on or after September 1, 2026.
To ease the financial strain on social security, pension increases will be reduced during 2027 to 2030, and insurers will be subject to a 2.05% tax on premiums for supplemental healthcare policies in 2026
Parents will be eligible for a new state-paid “birth leave” (congé de naissance) of up to two months from July 1, 2026, for children born or adopted on or after January 1, 2026 (including premature births with a 2026 due date). Leave must be used within nine months of the child’s birth or adoption but only after the claimant’s maternity, paternity or adoption leave entitlement has been exhausted. Due to a delay in implementing the benefit (originally scheduled for January), leave will be available until the end of 2026 for births or adoptions occurring in the first quarter of 2026. Leave will be payable at 70% of covered pay for the first month and 60% for the second, available in one-month blocks for both parents (separately or simultaneously)
For mutually agreed employment terminations, the rate of the employer-paid social contribution will increase from 30% to 40%, payable on the portion of the severance lump sum not subject to social security taxes
Doctor prescriptions for sick leave, which previously had no limits on duration, will be limited to one month initially, with any renewals limited to two months each time

Employer implications

The provision of birth leave effectively transposes the provisions of the EU’s 2019 Work Life Balance Directive, which mandates a minimum of two months’ parental leave for each parent, payable at a level that maintains a reasonable standard of living. Birth leave does not replace the existing framework for unpaid parental leave. Very few employers surveyed by WTW (2%) offer paid parental leave benefits. Employers should review the law and their policies to ensure compliance.

Contacts

Isabelle Marron

Associate Director, Pensions and Benefits, France

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Khalil Aït-Mouloud

Director, Rewards Data Intelligence Leader, France