Not just about retiring at 64: What you may have missed in the French pension reform

The proposed reform to the retirement age and the advantages that include stopping work prompted an outcry throughout France. However why is it proving so controversial? Right here’s what we expect you need to learn about it.

It’s not nearly retiring at 64

In France at the moment, everybody can retire at 62. With this reform, as you might know, the authorized age for retirement is being pushed again to 64. You may be considering that it appears to match favourably with neighbouring Germany and Italy (each 67) and Spain and Belgium (each 65). However, retiring at 64 in France doesn’t essentially assure a full pension. Following the reform, individuals should work for 43, slightly than 42, years to make sure a full state pension. It means most individuals will solely be eligible for it from the age of 67.

Encouraging the employment of older individuals

In France, the employment fee for 55-64 12 months olds is 56%, whereas the common in Europe is 60.5%, in keeping with the OECD. To combat towards unemployment among the many oldest staff, the federal government has determined to create a “senior index.” Merely put, it’s a means of pushing firms to publish the variety of staff over 55. The federal government goals to make it obligatory for all firms with greater than 1,000 staff to publish this knowledge from November. Failure to conform would result in sanctions. 

A brand new kind of everlasting contract, known as “CDI seniors,” can be deliberate. This contract could be exempt from some monetary contributions to encourage firms to rent individuals over 60.

Girls (nonetheless) at a drawback

As our colleague Sophia Khatsenkova explains, ladies are at the moment deprived as a result of they have a tendency to retire later than males and have decrease pensions. They’re  roughly 40% decrease, in reality. That is for a number of causes, together with a bent to do part-time work and, in fact, maternity depart. With the reform, ladies will retire later and would, on common, work seven months longer throughout their lifetime. For males, it will be 5 months. “Girls shall be a bit penalised by the reform” admitted Franck Riester, the Minister Delegate for Parliamentary Relations, on 23 January.

A minimal pension for low salaries

The brand new reform offers for a minimal pension of 85% of the French minimal wage; it implies that staff who’ve labored for 43 years will get a minimal of 1,200 euros a month of pension (primarily based on at the moment’s minimal wage). In line with the French authorities, it’s a social measure to assist improve small pensions. However, this measure is barely anticipated to affect 20,000 French individuals, in keeping with the most recent authorities estimates. In France at the moment, the common pension is roughly 1,400 euros.

What subsequent?

Opposition events have tabled motions of censure: a movement criticising the behaviour of the federal government. A debate about them is predicted in parliament from Monday, 20 March. For the federal government to be censured, a movement must obtain an absolute majority of 289 votes out of 577 elected members.

Commerce unions have known as for spontaneous demonstrations, culminating in a brand new day of strikes and protests, scheduled for Thursday, 23 March.