How much does France lose each year with the current unemployment benefit system?

According to what the French Minister of Labor Jean-Pierre Farandou told the National Assembly, France loses 860 million euros per year with the current system, in which the allowances are paid by the country of residence of the frontier worker.

Is Switzerland obliged to implement the new European agreement?

Switzerland is not a member of the European Union, but is linked to the EU by bilateral agreements. Minister Farandou said that he will put pressure on Switzerland together with the European Union, recalling that the Confederation "benefits greatly from its good economic relations with the Union".

When will the new system for border workers come into force in Switzerland?

There are still no certain dates for the possible application of the new agreement to Switzerland. Luxembourg has already defined an implementation timetable with France, but for Switzerland the timing remains to be defined. Farandou admitted that “it's going to take some time.”

How does unemployment currently work for Italian border workers working in Switzerland?

Currently, Italian border workers residing in Italy who work in Switzerland must apply to INPS to claim unemployment benefits. Italy pays the benefits despite the fact that the worker has also paid contributions in Switzerland during the work activity.

France puts pressure on Switzerland for frontier unemployment benefits (cross-border guide)

Di Valerie Linc · Published on 13 July 2026

Minister Farandou at the National Assembly: France loses 860 million euros a year under the current system. The European agreement provides for allowances to be paid by the country of employment.

Context

In a nutshell

French Labour Minister Jean-Pierre Farandou intends to put pressure on Switzerland
France loses 860 million euros per year with the current unemployment benefit system
The new European agreement provides for allowances to be paid by the country where the work is carried out
The agreement was approved by the 27 countries of the European Union on 29 April

Key facts

What: France asks Switzerland to apply the new European agreement on unemployment benefits for border workers
Who: Jean-Pierre Farandou, French Minister of Labour
Where: Declaration to the National Assembly (French parliament)
Amount: 860 million euros per year lost by France under the current system
When: EU approval on 29 April, after a decade of negotiations
Who: Luxembourg has already defined an implementation timetable with France

French Labour Minister Jean-Pierre Farandou announced to the National Assembly, the French parliament, his intention to put pressure on Switzerland to implement the new European agreement on unemployment benefits for frontier workers. The agreement provides that, in the future, these allowances will be paid by the country in which the work is carried out, and no longer by the country of residence.

The cost of the current system for France

Farandou recalled that France currently loses 860 million euros a year with the current system, in which the

Operational details

Implications for Ticino border workers

The debate on unemployment benefits for border workers directly touches the reality of thousands of workers who cross the Italian-Swiss border every day to reach their places of work in Canton Ticino. Currently, an Italian border worker residing in Italy who works in Switzerland and loses his job receives unemployment benefit from Italy through INPS, despite having also paid contributions in Switzerland during his work activity.

How the system works today

Under the current system, frontier workers residing in Italy and working in Switzerland are covered by the Italian unemployment regime. INPS manages the practices and pays the allowances, but Switzerland does not participate directly in the financing of these benefits despite the fact that the worker has contributed to the Swiss social security system during the period of employment. This imbalance generates a significant financial flow from Italy to the frontier unemployed, without a corresponding contribution from Switzerland.

What would change with the new agreement

If Switzerland were to adopt the new European agreement, unemployment benefits would be paid directly from Switzerland, that is, from the country where the work is carried out. This would mean that Italian border workers looking for work could turn to the Swiss authorities to receive benefits,

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Key points

What cross-border workers can do today

While waiting for concrete developments on the unemployment benefits issue, cross-border workers who work in Canton Ticino can still adopt some measures to protect their rights and prepare for potential future changes in the social protection system.

Check your contribution status

The recommended first step is to verify your contribution status in both Italy and Switzerland. Cross-border workers should check that the contributions paid during their work period in Switzerland have been properly registered. In particular, it is important to check your AHV status, which represents the first pillar of Swiss social security and forms the basis for many social benefits, including those related to unemployment.

Documentation required for unemployment benefits

Should a cross-border worker find themselves in the situation of having to apply for unemployment benefits, it is essential to have ready the documentation related to the work period in Switzerland. This includes employment certificates, pay slips from the last few months, the G permit that attests to cross-border worker status, and documentation related to contribution payments. The current procedure requires that the application be submitted to INPS in Italy, but it is advisable to also inquire with your employer about Swiss procedures.

Useful contacts in Canton Ticino

In Canton Ticino, cross-border workers can contact the competent cantonal offices to receive information about their contribution status and their rights in case of unemployment. The Ticino Placement Center can provide guidance on professional reintegration opportunities, while for specific questions related to contributions, you can contact the offices responsible for AHV management.

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Frequently Asked Questions

What does the new European agreement on unemployment benefits for border workers provide for?: The new agreement provides that the unemployment benefits of frontier workers are paid by the country in which the work is carried out, and no longer by the country of residence. The agreement was approved by the 27 countries of the European Union on April 29, at the end of a decade of negotiations.
How much does France lose each year with the current unemployment benefit system?: According to what the French Minister of Labor Jean-Pierre Farandou told the National Assembly, France loses 860 million euros per year with the current system, in which the allowances are paid by the country of residence of the frontier worker.
Is Switzerland obliged to implement the new European agreement?: Switzerland is not a member of the European Union, but is linked to the EU by bilateral agreements. Minister Farandou said that he will put pressure on Switzerland together with the European Union, recalling that the Confederation "benefits greatly from its good economic relations with the Union".
When will the new system for border workers come into force in Switzerland?: There are still no certain dates for the possible application of the new agreement to Switzerland. Luxembourg has already defined an implementation timetable with France, but for Switzerland the timing remains to be defined. Farandou admitted that “it's going to take some time.”
How does unemployment currently work for Italian border workers working in Switzerland?: Currently, Italian border workers residing in Italy who work in Switzerland must apply to INPS to claim unemployment benefits. Italy pays the benefits despite the fact that the worker has also paid contributions in Switzerland during the work activity.