January 2026 Brings Key Changes to French Social and Economic Policies

As of January 1, 2026, several major legislative adjustments in France have come into effect, impacting social security, retirement policies, minimum wage, and related areas. These changes follow months of parliamentary debate culminating in the adoption of the 2026 Social Security Financing Bill (PLFSS 2026).

One of the most significant developments is the suspension of the 2023 retirement reform, announced by Prime Minister Sébastien Lecornu in October 2025. The law, officially published on December 31, 2025, halts the previously planned increase in the retirement age until January 2028. Alongside this suspension, the legislation includes revisions to retirement benefit calculations for women and provisions for early retirement for long careers, with these measures set to be implemented from September 2026. The PLFSS 2026 was passed by the National Assembly on December 16, 2025, after a closely contested vote of 247 to 234. It had faced rejection from the Senate initially but ultimately secured validation from the Constitutional Council at the end of December.

In economic policy, the national minimum wage (SMIC) has been raised by 1.18%, reaching €1,823.03 gross monthly. This increase reflects adjustments linked to inflation and wage growth. The annual social security ceiling has also grown by 2% compared to the previous year, affecting benefit calculations.

Additional policy changes include updates to the Energy Performance Diagnosis (DPE) calculation method that reduce penalties for electricity usage, allowing homes heated with electricity to potentially improve their energy ratings without costly renovations. Postal services will see an average price increase of 7.4%, including a rise to €1.52 for green letters and a 3.4% hike in Colissimo package rates. Furthermore, the government has introduced mandatory online declaration for various donations between individuals, covering monetary gifts and items such as jewelry and vehicles. Lastly, a civic exam is now required for first-time applicants of multi-year residence permits and naturalizations.

These legislative and policy changes reflect France's ongoing efforts to balance social welfare, economic stability, and environmental considerations amid evolving national priorities. Government officials anticipate these reforms will provide clarity and improved fairness in social security and enhance economic protections for citizens.