The Senate's decision reflects a compromise between right-wing and centrist parties, who emphasized the need to curb the rising trend of contribution exemptions, which currently total nearly 80 billion euros.

Efforts by Renaissance parliamentarians to eliminate the measure entirely were largely unsuccessful, as many right-wing members withdrew their amendments in the name of 'collective responsibility'.

The Senate's actions come amid criticism from former ministers, including Gabriel Attal and Bruno Le Maire, regarding their management of public finances, with Le Maire labeling a recent Senate report as politically charged and misleading.

Despite the Senate being more lenient towards employers than the government anticipated, it did not fully eliminate the contribution reduction measure as requested by Renaissance party members.

On November 19, 2024, the French Senate approved a significant reduction in employer social security contribution exemptions, a measure expected to generate three billion euros for the social security budget.

The adopted measure aims to preserve jobs for those earning around the minimum wage (SMIC) by maintaining existing exemptions for these salaries while proposing increased contributions for higher salaries, particularly in 2026.

The reform has sparked extensive debate, especially among business leaders and supporters of President Macron, who oppose the reduction of employer contributions.

This amount is one billion euros less than the government's initial target of four billion euros aimed at supporting social security funding.

Negotiations surrounding this measure are expected to be challenging, particularly between the Renaissance deputies and the government led by Michel Barnier.

Final decisions on this contentious measure will depend on discussions in a joint committee of deputies and senators scheduled for November 27, 2024.

While the government has indicated a willingness to reduce the demands placed on businesses, no concrete proposals were made during the Senate discussions.

Additionally, the Senate approved a reduction in exemptions for companies distributing free shares to employees, which is projected to generate between 400 and 500 million euros.