Good news to come for the state’s wallet. The European rules governing compensation for unemployed cross-border workers are about to change significantly. Member countries of the European Union have validated an agreement on the coordination of social security systems, which could significantly reduce the bill for France. According to the Cypriot Presidency of the Council of the EU, a compromise was found with the European Parliament last week, then approved this Wednesday April 29 by the Member States. The text modifies the principle of support for workers who have worked in another country of the Union.
From now on, by virtue of the principle of lex loci laborisworkers who have worked at least 22 weeks in another Member State could be covered by the unemployment insurance scheme of the country where they last worked, subject to meeting the national compensation conditions. Until now, the system was based on a different logic: cross-border workers contribute in their country of employment, but are compensated by their country of residence in the event of loss of activity. A mechanism considered costly for certain States, including France.
A deficit of 860 million euros in 2024
Because for Paris, the budgetary impact is far from marginal. Expenditure linked to compensation for cross-border workers reached 1.1 billion euros in 2024, up 11% year-on-year. At the same time, neighboring countries are paying partial compensation, estimated at 270 million euros. Unédic thus estimates the deficit linked to these measures at 860 million euros in 2024 alone, or nearly 10 billion cumulatively since 2011.
The Swiss case alone concentrates the majority of expenses. Compensation for cross-border workers who worked in Switzerland represents 614 million euros, ahead of Luxembourg, Germany, Belgium and even Spain. In total, 27,500 beneficiaries concerned are listed. These imbalances can be explained in particular by the level of Swiss salaries, which leads to significantly higher benefits: 2,123 euros on average for a cross-border worker at the end of their rights, compared to just over 1,000 euros for all recipients in France.
The agreement will still have to be submitted to the European Parliament for a vote before entering into force. But a decisive step remains to be taken: convincing Switzerland, a non-member of the Union, to apply these new rules.
