France: on 01 June State financial cover for partial activity will fall from 70% to 60% of gross salary

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“As of 01 June, the conditions for taking over the partial activity allowance will be revised”, confirmed the Ministry of Labor, in information sent to the press on 25 May. Even if ‘compensation paid to the employee remains unchanged’ (70% of gross salary, i.e. 84% of net salary and at least the net minimum wage), the level covered by the State and the unemployment agency will be lowered so that companies will now be reimbursed up to 60% of gross salary, capped at 4.5x minimum wage, instead of 70%. Sectors subject to special legislative or regulatory restrictions due to the health crisis will continue to benefit from 100% cover. This measure still has to be made the subject of a decree, which will be issued following adoption of a bill treating several health crisis related provisions that is currently under Parliamentary discussion.

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