The report said the management centre responsible for the employees "had little motivation to find them new jobs" because as long as it reported a deficit, they would continue to be paid out of the budgets of the local authorities that originally employed them.
"The budget forecast of the management centre is presented showing a deficit each year to trigger a specific legal provision allowing continued funding of the remuneration of staff without jobs," it said.
Some of the employees will receive the maximum pension as a result of remaining on the payroll until the working age limit of 67.
The Telegraph reports the revelation comes amid growing anger at the country's bloated and lazy public sector, high taxes and rising cost of living.
Two months ago, a government report found more than 300,000 public servants fail to work the minimum required 35 hours per week.
President Emmanuel Macron has promised to cut 120,000 public service jobs by 2022 in a bid to save $97 billion.
It comes after two similar cases of French bureaucrats being paid for years despite doing no work. In Spain, a public servant made headlines in 2016 after he skipped work for a decade without anyone noticing.