The self-employed and employees on the day plan now eligible for progressive retirement – June 2022 – News – Life insurance

More than a year after the decision of the Constitutional Council, the opening of progressive retirement to employees on a daily basis has been effective since May. This formula offers them the possibility of contributing more for their retirement and at the same time acquiring new rights, provided they respect the minimum working time requirements.

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

The phased retirement formula was designed in part to compensate for this shortcoming. This system allows people at the end of their career – aged 60 or over – to reduce their professional activity and work part-time, while receiving part of their basic and supplementary pension. At the same time, they continue to contribute for their old age.

Eligibility conditions for the self-employed and employees for the day package

Since the publication of the implementing decree at the end of April, progressive retirement has been accessible to the self-employed and to employees on a daily basis. In addition to the conditions of age and minimum contribution period, the self-employed must comply with other rules to benefit from it. At the time of applying for their progressive retirement, their annual income must represent between 20 and 60% of their average income of the last 5 years, while being greater than or equal to 40% of the SMIC. The text does not prohibit contributors from saving in better life insurance or in another long-term investment, in addition to phased retirement. Workers on a daily basis also benefit from this freedom.

The age and minimum contribution period – fixed at 150 quarters – which are applied to them remain unchanged. In addition to these common criteria, the person wishing to contribute to progressive retirement must carry out part-time work for 40 to 80% of the maximum duration in a day package. This limit being 218 days, the working time on a fixed-rate day basis is therefore between 87.2 and 174.4 days. This quota may include one or more part-time activities.

The end of unequal treatment between employees

The opening of progressive retirement to the self-employed and to employees on a daily basis puts an end to a long waiting period. Before this year, these profiles were automatically excluded from this system, due to the difficulties relating to the calculation of their working time.

Important The original phased retirement formula concerns only workers whose working time was estimated in hours,

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

After several debates between the workers’ representatives and the public authorities, the Constitutional Council took up the case. The Elders issued their decision in February 2021, noting in passing that the limitation of progressive retirement to employees on a fixed hour basis is unfair. This restriction leads to a difference in treatment between workers. The tenants of the Palais Royal have decided to extend the system to the self-employed and to employees on a daily basis. This verdict was transcribed into decree on April 27, 2022.

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