Tax increaseEndedEmployment and contributionsNational

Unemployment insurance: contribution raised from 5.80% to 6.40% on 1 January 2003

Amendment No. 6 of 27 December 2002 to the unemployment insurance agreement of 1 January 2001, concluded by the social partners to restore the scheme's financial balance, raises the unemployment insurance contribution rate from 5.80% to 6.40% from 1 January 2003: 4% paid by employers and 2.40% by employees. The amendment is made binding on all employers and employees in scope by an approval order of 5 February 2003.

Measure originators

InitiatorGVT

François Fillon

Gouvernement

Impact on public finances

Brings in €6.5bn (over several years)2003 estimate · Social security

Source of the estimate: Rapport relatif à l'agrément des avenants à la convention d'assurance chômage du 1er janvier 2001 (JORF n° 33 du 8 février 2003), section 1.1 (Indirect official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 January 2003

Measure impact

A 0.6-point increase in the unemployment insurance contribution, shared between employers and employees, for all employees covered by the scheme. The amendment provides for a review by the social partners before 31 December 2003. According to the report published in the Official Journal with the approval orders, the rate increase is expected to bring the scheme €6.5 billion over 2003-2005.