French National Assembly Approves 2026 Social Security Budget with Key Health and Pension Measures

The French National Assembly has approved the 2026 Social Security Financing Bill (PLFSS) on December 9, 2025, advancing it towards final validation by Parliament. The bill introduces significant health and social measures including the suspension of the latest pension reform and various health-related provisions aimed at improving public welfare.

Notably, the PLFSS limits sick leave durations to one month for initial prescriptions and two months for renewals to curb abuse and enhance monitoring. A new birth leave, in line with President Emmanuel Macron’s demographic strategy, will commence on January 1, 2026, allowing employees up to two months off with salary compensation of 70% for one month and 60% for two months off. Additionally, vaccination against flu will become mandatory for nursing home (Ehpad) residents and certain healthcare workers, following recommendations from the High Authority of Health.

The bill also enforces the establishment of authorized centers for voluntary pregnancy termination (IVG) in every department and initiates a national prevention plan against fetal alcohol syndrome, which affects an estimated 15,000 children annually. Moreover, a ‘mental health first aid pass’ will be created for young people aged 16 to 20 to promote mental health awareness and support.

On the fiscal side, a new tax on health mutuals is expected to raise one billion euros without resulting in increased premiums in 2026. However, some proposed measures such as doubling medical franchises were rejected by deputies.

Politically, the approval of PLFSS 2026 coincided with a suspension of the most recent pension reform, stirring reactions across the Assembly. A number of Nouveau Front populaire deputies refrained from signing a government censure motion, citing a sense of responsibility. Meanwhile, members of the National Rally expressed outrage at their exclusion from Assembly vice-presidency roles, accusing the process of democratic denial and manipulation. The fragmented Assembly has raised concerns among lobbyists about emerging new majorities that could challenge business interests.

The approval of the PLFSS 2026 will impact French social security policies significantly in the coming year, with health, birth leave, and pension frameworks seeing noteworthy modifications.