2027 Budget: RSA and Aspa benefits will be indexed to inflation, announces Jean-Pierre Farandou

The active solidarity income (RSA) and the solidarity allowance for the elderly (Aspa), commonly known as the minimum old-age pension, should indeed be increased in line with inflation in 2027. The Minister of Labour, Jean-Pierre Farandou, announced on Friday that a decision had been made in this regard by the Prime Minister.

"On social welfare benefits, the Prime Minister has made a decision, we are going to index the RSA and the minimum old-age pension, what we call the Aspa," Jean-Pierre Farandou assured on franceinfo.

This announcement comes during the preparation of the draft budget and the draft social security financing bill for 2027. It will still need to be incorporated into the budgetary texts and then examined by Parliament. The rate of increase applicable in 2027 is not yet known.

The purchasing power of the beneficiaries preserved

Indexation aims to adjust the amount of benefits in line with price increases. It prevents positive inflation from reducing their real value for the households concerned.

The RSA (Revenu de Solidarité Active) guarantees a minimum level of resources for people with low incomes or who are unemployed. Its amount varies depending on household composition and income. The Aspa (Allocation de Solidarité pour Personnes Âgées) is intended for elderly people whose income remains below a certain threshold.

In 2026, the RSA (Revenu de Solidarité Active, or Active Solidarity Income) and several social benefits were increased by 0,8% on April 1st. For a single person with no other income, the monthly amount of the RSA thus increased from 646,52 to 651,69 euros in metropolitan France and in most of the territories concerned.

A €2,8 billion cut for the Labour mission

The decision regarding minimum social benefits is taking place within a constrained budgetary framework. The government report on spending ceilings for the 2027 draft budget bill plans to reduce the resources allocated to the "Labor, Employment and Administration of Social Ministries" mission from €32,2 billion in 2026 to €29,4 billion in 2027.

According to the budget document, this reduction of 2,8 billion euros would result from savings made in previous years and a refocusing of resources on the mechanisms considered to be the most effective.

Jean-Pierre Farandou nevertheless assured that several policies would be "protected." He cited "apprenticeships, both in terms of support for companies to take on apprentices and the funding of training organizations."

This policy directly concerns construction and public works companies, for which apprenticeships are a major avenue for recruitment and skills transfer. However, the minister did not specify the amounts, scales, or conditions of the subsidies that would be maintained in 2027.

Youth commitment contracts, deployed by local missions to young people facing difficulties accessing employment, are also among the announced priorities.

The number of labour inspectors maintained

The number of labor inspectors must be maintained at "almost 2.000" so that agents can continue to fulfill their missions, according to Jean-Pierre Farandou.

In the construction industry, labor inspection intervenes particularly on the prevention of falls from height, exposure to certain products or dust, working conditions, illegal work and the protection of employees during periods of high heat.

The announced maintenance of staff numbers will need to be assessed in light of their territorial distribution and the number of establishments and construction sites to be monitored.

The government opens the debate on indexing pensions

While a decision seems to have been reached regarding the RSA (income support) and the Aspa (supplementary allowance for the elderly), the government is not making the same commitment concerning retirement pensions. Jean-Pierre Farandou believes that their full and automatic indexation to inflation represents a significant burden on social security finances.

"There is an economic problem, obviously, because applying 100% indexation to inflation to 400 billion adds up quickly. I appeal to the solidarity of seniors to participate in a collective effort to revive our country and restore the Social Security accounts."

Jean-Pierre Farandou, Minister of Labour

The day before, during a debate organized as part of the Medef's Meeting of French Entrepreneurs, the minister had already stated that it was necessary to "question this principle of systematic indexation which is very costly, even more so in a phase of high inflation", adding that "the system" did not have "the means to support this".

These statements open the door to a possible under-indexing of pensions or a change in the indexation schedule. However, no specific rates, pension thresholds, or mechanisms have been announced. Therefore, at this stage, it is a matter of debate, not a measure that has been adopted.

The CGT rejects any de-indexing of pensions.

The General Confederation of Labour (CGT) has called on the government to "abandon its plan to de-index pensions." According to the union, an increase lower than inflation would lead to a decrease in the purchasing power of retirees.

In a previous statement published on August 17, the CGT had already opposed any limitation of indexation, believing that it would result in a decrease in the real value of pensions, even if the measure initially concerned the pensions presented as the highest.

The union is also asking employers to "reverse the freeze on supplementary pensions that they have imposed on 14 million retirees for the past two years."

This question concerns Agirc-Arrco, the supplementary pension scheme for private sector employees, which is governed by social partners. It is separate from the increase in basic pensions discussed in the budgetary debates of the State and Social Security.

In July 2026, the CGT and CFE-CGC unions announced legal action following the breakdown of negotiations on the value of the Agirc-Arrco pension point. According to the two organizations, the lack of a majority on the board of directors had led to a freeze on supplementary pensions for 2026, while the unions were demanding a 1% increase.

Unemployment insurance: social dialogue is the priority

Jean-Pierre Farandou was finally questioned about Édouard Philippe's proposal to reduce the maximum duration of compensation for job seekers under 50 years of age from 18 to 12 months.

Without directly specifying the timeframe, the minister emphasized the need for "social dialogue" in order to "implement reforms without abruptness." Any new changes to unemployment insurance rules should therefore be discussed with social partners.