Pension
In France, the retirement scheme is based on a statutory scheme and a mandatory complementary scheme. The statutory retirement scheme itself is divided into categories: the general scheme, the plan for agricultural workers, self-employed, civil servants, and a number of "special regimes," ranging from public transport workers to civil aviation flight crews and the Paris Opera employees.
The most common complementary retirement scheme is managed by Agirc-Arrco, which is the result of the 2019 merger of the private sector retirement scheme for executives (Agirc), and the retirement scheme for workers (Arrco).
The Agirc-Arrco scheme uses a 2-salary-bracket contribution basis. A separate contribution rate applies to each salary bracket and is shared between the employer (60%) and the employees (40%). The employer's rate of contribution ranges from 4.72% to 12.95%.
Following the reform enacted in 2023, the general statutory retirement age in France is going to be gradually increased from 62 to 64 (by 2030). In order to qualify for a full pension, individuals must also make an appropriate amount of contributions (contribution trimesters). The basic statutory retirement pension cannot exceed 50% of the Social Security ceiling, which in 2023 is EUR 1,932 (euros) per month. The rate usually ranges between 37.5% and 50%.
Dependents/Survivors Benefits
The statutory social security system of France provides for survivors benefits, including a death grant, as a lump sum paid to the surviving spouse/partner/children, a temporary widowhood allowance, and a survivor's pension. These benefits are awarded depending on the status of the deceased and their surviving spouse/partner and children.
If the surviving spouse/partner is 55 and older, he or she can benefit from a survivor's pension, which is a portion of the old-age pension that the deceased person was receiving or was entitled to.
In order to benefit from the survivor's pension, the person must have been married to the deceased, not simply in a registered partnership. The deceased spouse also must have been contributing to the old-age pension scheme.
The amount of the survivor’s pension is 54% of the deceased spouse’s old-age pension. The maximum monthly amount of the survivor's pension is EUR 1,043.28.
Invalidity Benefits
In France, the conditions for entitlement to disability benefits differ for occupational and non-occupational accidents or diseases.
Eligibility conditions for a disability pension after an accident or a disabling illness which are not work-related are:
- The person must be under the statutory retirement age in France (currently 62, but this will increase to 64 by 2030).
- The person’s working capacity or income capacity has to have been reduced by at least two-thirds.
- The person has to have been registered with the statutory health system for at least 12 months at the time of the acknowledgment of the disability by the statutory health system medical advisor.
- During the 12 months preceding the acknowledgment of the disability, the person must have worked at least 600 hours or must have paid contributions on at least 2,030 times the hourly minimum wage before going on leave.
This disability pension is calculated upon the person’s ten highest average income years.
After the occupational accident or disease, the person will get a daily compensation calculated based on the gross salary of the month preceding the accident or the onset of the disease. The amount of daily compensation amounts to 60% of the person’s daily salary, with a maximum of EUR 386.70 as of January 1, 2024, for the first 28 days following the day the person stopped working. From the 29th day, the daily compensation goes to 80% of the person’s daily salary, with a maximum of EUR 309.37.
This daily compensation will be awarded until the person recovers, is declared to have developed a permanent disability (in which case there is an entitlement to a pension), or dies.