Self-employed and fixed-day package employees are now eligible for progressive retirement - June 2022 - News - Life Insurance - Meilleurtaux Recruitment

Self-employed and fixed-day package employees are now eligible for progressive retirement – June 2022 – News – Life Insurance – Meilleurtaux Recruitment

More than a year after the decision of the Constitutional Council, the opening of gradual retirement to employees on a daily basis has been in effect since May. This formula allows them to contribute more to retirement and at the same time to obtain new rights, provided that the requirements for a minimum working time are respected.

The legal retirement age in France is 62. Even at this age, some employees do not benefit from a full pension if they do not complete the minimum subscription period for a full pension.

The phased retirement formula is designed in part to compensate for this shortfall. This scheme allows people at the end of their careers – who are at least 60 years old – to reduce their professional activity and work part-time, while receiving a portion of their basic and supplemental pension. At the same time, they continue to contribute to their old age.

Eligibility requirements for self-employed and one-day package workers

Since the executive decree was published at the end of April, gradual retirement has been made available to self-employed and employed people on a daily basis. In addition to the age requirements and minimum subscription period, business owners must abide by other rules to benefit from them. At the time of applying for their progressive retirement, their annual income must represent between 20 and 60% of their average income in the past five years, while being greater than or equal to 40% of the SMIC. The text does not prevent contributors from saving in better life insurance or other long-term investment, in addition to gradual retirement. Workers also benefit on a daily basis from this freedom.

age and Minimum subscription period – fixed at 150 quarters – to which it is applied remains unchanged. In addition to these common criteria, a person wishing to contribute to a progressive retirement must Do part-time work for 40 to 80% of the maximum duration in one day package. This limit is 218 days, so the working time on a flat rate day basis is between 87.2 and 174.4 days. This class may include one or more part-time activities.

End of unequal treatment among employees

The opening of gradual retirement for self-employed and employees on a daily basis puts an end to the long waiting period. Prior to this year, these profiles were automatically excluded from this system, due to difficulties with calculating working time.

Important The original formula for phased retirement is for only workers whose working time is estimated in hours,

It doesn’t matter if they work part time or full time. It doesn’t really apply to the working time of the self-employed and the employees on a daily basis, hence they are left out.

After several discussions between representatives of workers and public authorities, the Constitutional Council considered the case. The Elders issued their decision in February 2021, noting that Determining the gradual retirement of employees on a fixed hour basis is considered unfair. This limitation results in different treatment among workers. The tenants of Palais Royal decided to extend the system to self-employed and employees on a daily basis. This provision was copied into a decree of 27 April 2022.

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