Along with the pension reforms, the government announced an increase in small pensions. While the promised increase was up to 100 euros per month, the reality is quite different. In any case, the latest data from the Ministry of Health indicates this.
Indeed, according to estimates from the Department of Research, Studies, Evaluation and Statistics (DREES) released on Thursday 29 February, there are 185,000 new retirees who will benefit from an increase in their pension in 2024. Still according to DREES, this would increase the retirement pension for about 30% of new retirees by an average of 30 euros per month. However, this study only assesses the projected benefit for those who will claim their retirement rights in 2024.
Indeed, when the reform takes effect in September 2023, the 1.7 million retirees who have already left the labor market and receive small pensions, will see their income rise by only 60 euros. In addition, some 500,000 ex-pensioners have received an extra 50 euros per month on average since September. This increase is the result of the revaluation of the “minimum of support” (MICO) to 85% of the net SMIC.
Unless the government’s promise to increase MICO by 100 euros per month will not benefit everyone. In fact, only retirees who have worked all their lives in the private sector (or as self-employed workers or in the agricultural sector) and whose remuneration is equal to the minimum wage can receive this 100 euros more per month. Consequently, ex-employees in private and public sector cannot claim this full revaluation. although, ” It is for the most modest beneficiaries that minimum contributions have the greatest impact
», indicates DREES.Additionally, MICO will now be re-evaluated every year based on the minimum wage rather than inflation. ” The measure aims to guarantee a pension equal to 85% of the net minimum wage at the end of a full career contributing to the minimum wage in aligned schemes. », explains DREES. Apart from its amount, the limit of resources not to be exceeded for receiving MICO was also re-evaluated in September 2023. In fact, to benefit from the minimum contribution amount, the total pension (basic and supplementary) should not exceed 1367.51 euros per month, an increase of 57.76 euros compared to the previous year.
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