85% of the net minimum wage: this is how the future amount of minimum pensions will be indexed for those who have a full career. And this will affect new and old retirees. But beware, the amount of 1,200 euros is gross, before CSG and CRDS.
“2 million small pensions will be increased”, promised Prime Minister Elisabeth Borne this Tuesday, January 10, 2023 by unveiling the pension reform of the Macron government, which must push back the legal retirement age from 62 to 64 years old. A reform that carries a measure of social equality: a minimum pension of 1,200 euros for all those who can prove a full careerin other words who reach the age of the full rate.
Pension reform: who can really benefit from the minimum pension at 1,200 euros?
Does this minimum mean net or gross? It will be gross, as confirmed in the evening, following the press conference, the cabinet of the Minister of Labor Olivier Dussopt. As a reminder, retirement pensions are subject to social security contributions. The CSG rate, on the other hand, depends on each retiree.
In fact, the beneficiaries of this “small minimum pension” will therefore not receive 1,200 euros each month from the Retirement Insurance and their supplementary pension, but several tens of euros less, once this minimum pension has been converted into net.
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Basic pension: 9.1% maximum social contributions
- CSG (general social contribution) for retirees: 8.3% (normal rate), 6.6% (intermediate rate), 3.8% (reduced rate) or 0% (exemption);
- CRDS (contribution for the reimbursement of the social debt): 0.5% or 0% (exemption);
- CASA (additional solidarity contribution for autonomy): 0.3% or 0% (exemption).
The maximum rate of social contributions is therefore 9.1% for the basic retirement pension (general scheme).
Pension reform: what will change from September 1, 2023