Civil servants circumvent the sick leave reform

The expected savings from reducing sick leave compensation in the public sector are not materializing as hoped. Public sector employees are adopting strategies to retain their full salary despite the reform. Announced in October 2024, this measure aimed to curb costly absenteeism for the state.

In autumn 2024, budget debates stirred tensions among civil servants. Public Service Minister Guillaume Kasbarian announced in Le Figaro a plan to combat absenteeism in the public sector. The plan proposed extending waiting days from 1 to 3 and reducing sick leave reimbursement from 100% to 90%, aligning the public sector with the private one.

The executive justified these measures by the high cost of absenteeism, estimated at 15 billion euros for the state in 2022 according to the General Inspectorate of Finances (IGF). Unions reacted strongly, calling the reform stigmatizing for employees.

However, the savings achieved since implementing these changes fall short of expectations. Civil servants are employing strategies to receive their full salary, thereby circumventing the restrictions. The fall of the Barnier government has also affected the application of these reforms, limiting their impact.

This situation highlights the challenges of budgetary reform in the public sector, where savings goals encounter practical and organizational resistances.

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Tense Senate debate illustration: Patricia Bullrich announces labor reform changes on medical leaves amid internal government tensions and CGT strike threats.
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Government anticipates changes to labor reform on medical leaves

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Following the Senate's approval of the labor reform, Senator Patricia Bullrich announced potential modifications to the article on leaves for serious illnesses to retain 100% salary. However, another government source states no changes will be accepted, creating internal tensions. The CGT threatens a general strike in response to the measure.

In France, demographic imbalances in the public sector force the state to heavily fund pensions for former civil servants. With nearly 6 million public workers, or one in five employees, the number of active agents falls short of retirees, requiring significant over-contributions.

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Catalonia's Health Department has reversed incentives for primary care centers to shorten sick leaves due to mental health and osteomuscular issues. The plan, opposed by parliamentary partners and health workers, will no longer impact center funding or professionals' variable pay. The department plans to notify centers next week.

Over six years after the 2019 reform, Brazil's pension deficit keeps rising, according to a Folha de S.Paulo analysis. The combined shortfall of INSS, civil servants, and military jumped from R$ 271.7 billion in 2015 to R$ 442 billion in 2025. The piece argues that further adjustments are essential for fiscal sustainability and intergenerational justice.

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In an editorial, Gaëtan de Capèle calls for a profound overhaul of the French public sector, as digitization and artificial intelligence reshape private industry. He highlights the relentless rise in public spending and uncontrollable debt, noting the lack of significant reforms for decades.

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