Pension amount of private sector employee

Average annual income

Your average annual income is average gross annual wages on which you have contributed to the Pension Insurance during the 25 years the most advantageous of your career.

The number of years is reduced to 24 if you benefit from an increase in your insurance period as a parent of a child.

The number of years is reduced to 23 if you benefit from increases in your insurance period as a parent of at least 2 children.

The increases in the duration of child insurance eligible for the reduction in the number of years taken into account for the calculation of your average annual salary are as follows:

• Increase in the duration of insurance by 4 quarters allocated to women, for each child, in return for the impact on working life of the maternity or reception of an adopted child and the steps prior to this reception
• Increase in the period of insurance by 4 quarters allocated to the father or mother, for each minor child, in return for the child's education during the 4 years following the birth or adoption
• Increase in the duration of insurance by one quarter per 30-month period of education of a child with a permanent disability of 80% under 20 years of age
• Increase in the duration of insurance equal to the actual duration of parental education leave.

If you have worked under 25, 24 or 23 years, your average annual income is equal to the average of your gross wages during those years of work.

All remuneration elements (basic salary, bonuses, overtime) and daily maternity allowances are taken into account for the calculation of the average annual income.

The amounts in francs are converted into euros and rounded to the nearest euro cent.

Your annual income is revalued by applying the revaluation coefficients in effect at the time of your retirement.

Before revaluation, income received from 2005 onwards is limited to social security ceiling.

Duration of pension insurance

The duration of pension insurance is the total of the quarters selected by the pension funds.

The duration of insurance retained by the Pension Insurance includes the following periods:

• The periods during which you have contributed to the Retirement Insurance (insurance quarters). The salary to validate 1 quarter is upgraded every year
• Periods of interruption of activity which are treated as insurance quarters (periods of sickness, long-term sickness or accident at work, maternity leave, periods during which you received a disability pension, periods of unemployment, periods of short-time work from 1^er March 2020, national service periods)
• The periods of employment for which the Pension Insurance does not have proof of your contributions but validated on the basis of the evidence you provide, generally your pay slips (periods validated by presumption)
• Insurance quarters granted free of charge, in particular for child.

Your pension insurance term is on your career statement.

You can view and download your career statement on the official Info-Retraite website, in your retirement accountusing the service My career / See my career :

Info Retirement - My retirement account

Duration of pension insurance required to obtain a full pension

The length of insurance required to obtain a full pension varies according to your date of birth :

Rates used to calculate the retirement pension

The rate applied to your average annual income is 50% if you are entitled to a full pension. This is especially the case if you fill in one of the following 2 conditions :

• You're retiring before age 67 with the required number of quarters, all plans combined, to be entitled to a full pension
• Or you're retiring at age 67, regardless of your number of quarters, all plans combined.

However, if you retire before the age of 67 without having the required number of quarters to be entitled to a full pension, all plans combined, the rate of 50% is reduced by 0.625% by missing quarters up to 20 quarters.

This reduction is called the haircut.

What are the conditions to qualify for the minimum contribution?

You are entitled to the minimum contribution if you meet the following conditions:

• You benefit from a Retirement full rate pension insurance
• You have applied for all your pensions from all the basic and supplementary schemes, French and foreigners, to which you have rights
• The total amount of these pensions shall not exceed €1,410.89

The minimum contribution is automatically granted to you if you meet these conditions to benefit from them.

How much is the minimum contribution?

There are 3 scenarios:

• 1^er case: you are retiring before age 67 by having the number of quarters required to qualify for a full-rate pension and all these quarters are paid in, the amount of your pension cannot be less than €10,847.22 gross per year, or €903.94 gross per month.

• 2^e case: you are retiring before age 67 by having the number of quarters required to qualify for a full pension but not all of those quarters are paid into.
  
  • If you have less than 120 contributory quarters, the amount of your pension may not be less than €9,075.50 gross per year, or €756.29 gross per month
  • If you have more than 120 quarters contributed, the amount of €756.29 Gross per month is increased based on your number of quarters contributed compared to your total number of quarters.
  
  For example, if you were born in 1964 and retire before age 67 with the 170 quarters required to qualify for a full-rate pension but only 135 quarters contributed, your pension cannot be less than €756.29 + [(€903.94 - €756.29) x 135 / 170] = €873.54 gross per month.

• 3^e case: you are retiring at age 67 without having the required number of quarters to be entitled to a full pension before age 67, the amount of €756.29 Gross per month is reduced based on your number of quarters compared to the number of quarters required to qualify for a full rate pension before age 67.
  For example, if you were born in 1964 and retire at age 67 with only 140 quarters, your pension cannot be less than €756.29 x 140 / 170 = €622.83 gross per month.

The payment of the minimum contribution cannot result in bringing the total of your retirement pensions beyond €1,410.89 gross per month.

In case of overtaking, the minimum contribution is reduced so that this amount is not exceeded.