Tax on mutual insurance companies, freeze on the CSG tax scale: the Senate reinstates several measures from the social security budget

One article of the draft provides for freezing the scale of the generalized social contribution (CSG), levied specifically on "replacement" income, i.e. retirement pensions, unemployment benefits and other disability pensions.

The measure is expected to generate around 300 million euros in 2026.

This measure, which was overwhelmingly rejected by the deputies, was reinstated in the Senate for the year 2026 only, by a very large show-of-hands vote, at the initiative of the majority alliance between the right and the centrists.

"This is not a choice we are happy about, but we are taking it on with courage (...) we are at such a point of deficit that we have to think about it," said centrist general rapporteur Elisabeth Doineau.

The Minister of Labour, Jean-Pierre Farandou, supported this recovery, which was necessary to "return to an economic equation that is bearable for the budget".

The copy from the National Assembly actually put the Social Security deficit at 24 billion euros in 2026, compared to 17,5 billion in the government's initial proposal.

The left has protested against this measure which will move some unemployed and retirees into a higher CSG bracket.

As an example, a retiree with a gross monthly pension of 2.700 euros, which is his only income, moving into the next higher bracket, would pay an additional 46 euros per month.

Overtime

"To restore the accounts, you are making the political choice to attack modest and precarious French people," denounced Senator Bernard Jomier (Socialist group).

The senators also reinstated a tax on supplementary health insurance (mutuals, health insurances) on their contributions, expected to generate one billion euros in 2026.

This provision had also been removed in the National Assembly. The government even wants to increase it by 100 million euros to finance the suspension of the pension reform, but the Senate did not go that far, as it intends to reinstate the Borne reform later during the examination of this text.

The upper house, like the deputies, also opposed an employer contribution levied on restaurant vouchers and holiday vouchers, an initial proposal from the government which hoped to raise 950 million euros.

Another point of convergence between senators and members of parliament is a measure extending to companies with more than 250 employees a flat-rate deduction of employer contributions on overtime hours.

Introduced at the initiative of the leader of the LR deputies Laurent Wauquiez in the Assembly, it has been confirmed in the Senate and should cost "130 to 140 million euros" according to Mr. Farandou.

Although very much in the minority, the left managed to win a small victory by passing a socialist amendment to subject certain salary supplements – such as profit-sharing and participation bonuses – to social security contributions when they exceed 6.000 euros per year, for salaries above 3 times the minimum wage.

These votes are not final, as debates on this social security budget will continue between the two houses of Parliament until the beginning of December at the earliest.