Senate Debates Social Security Budget: Key Issues at Stake
The examination of the Social Security budget in the Senate commenced on November 18, 2024, with significant discussions anticipated around several contentious measures. These include the revaluation of pensions, the introduction of a second solidarity day, and the reduction of employer contributions. As the Senate takes up the budget, it aims to address modifications made during its passage through the National Assembly.
Employer Contributions: A Balancing Act
One of the most sensitive topics under discussion is the reduction of employer contributions. The government initially proposed a withdrawal of 4 billion euros from these contributions but has since revised this figure to 2 billion euros. The Senate has suggested a compromise at 3 billion euros, focusing on rebalancing reductions favoring salaries near the minimum wage. This proposal has sparked concern among employers, who fear potential job losses, while the Macronist faction is pushing for its complete abolition. The government has indicated that discussions on this matter remain open.
Pensions and Solidarity Measures
Another critical aspect of the debate is the compromise reached between the government and Les Républicains regarding pension indexing. Starting January 1, pensions will be indexed to half of inflation, with an additional supplement for lower pensions effective July 1. This adjustment is expected to reduce the government's initial revenue target from 4 billion euros to between 3.5 and 3.2 billion euros. Additionally, the proposed
