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the government renounces freezing pensions

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the government renounces freezing pensions

The government does not want to give the impression that it is harsh on the most vulnerable. After having announced, just over a month ago, a measure that penalizes all retirees, it has just reviewed its project with the aim of saving those with modest means. A carefully orchestrated concession with his partners in the Les Républicains (LR) party.

On Tuesday, November 12, the Minister of Budget, Laurent Saint-Martin, declared, on France 2, that pensions will finally be revalued from 1Ahem January 2025. The progression, he specified, will correspond to a rate less than half of inflation, that is, ” probably “ 0.9%, the exact quantum being still in the calibration process. In addition, a second increase will occur six months later, on 1Ahem July, for people whose retirement is less than the minimum wage (just over 1,426 euros net per month), in order to prevent them from suffering an erosion of their purchasing power.

The executive thus returns to a first decision, taken on October 2, consisting of increasing pensions on October 1Ahem July 2025 – not 1Ahem January, as provided in the Social Security code. The objective was then to involve all retirees in the recovery of public accounts by freezing their benefits for six months. An election denounced by almost all political forces, who considered it unfair.

Commitment

The current power agrees to make a gesture. For a person whose total pension (that is, basic and, where appropriate, complementary) is less than the minimum wage, this will evolve at the same rate as prices in 2025, thanks to an increase carried out in two stages. 44% of retirees will be like this “protected”in the words of Prime Minister Michel Barnier, who spoke on the matter on Tuesday in the National Assembly. On the other hand, people who earn a minimum wage will lose purchasing power because their benefit will be less dynamic than inflation.

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The fact that the executive is watering down his copy is no surprise. During October, several ministers suggested they were prepared not to make contributions to the worst-off pensioners. The decision presented Tuesday by MM. Saint-Martin and Barnier are the result of a compromise whose main lines had been revealed the day before by Laurent Wauquiez (LR), president of the La Droite Républicaine group in the National Assembly.

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