Unemployment benefits in France

Benefits and contributions are set by the independent body called UNEDIC which is controlled equally by Trade Unions and Employer associations.

[1] Unemployment insurance was established by Charles de Gaulle on 31 December 1958 and initially applied only to employees of the commerce sector.

From the start the employers organization CNPF and the trade unions FO, CFTC and CGC signed up to the new system.

Finally employer organisations and the unions agreed to reduce benefits and make them dependent on the length of contributions.

In 1992 the system again fell into deficit and the partners decided to increase the required contribution period together with reductions for the long term unemployed.

In 2001 the reductions were abandoned in favour of incentives to employ the long term unemployed (PARE) but the reduced contributions and rising unemployment bring the system into deficit again and the partners were again forced to revise the system reducing the length of benefits from 30 months to 23.