Basic pensions will finally be increased by 2.2% on January 1, the Ministry of the Economy announced Tuesday, December 10, a rate indexed to inflation, in the absence of adoption of the Social Security budget. The latest version of the draft Social Security budget for 2025, which led to the censure of Michel Barnier’s government, proposed two increases, first of 0.8% in January then of an additional 0.8% in July, but only for small pensions, or 1.6% in total.
Politically sensitive subject
This calculation was based on inflation expectations in the summer of 2025 and not on average inflation for 2024, the Ministry of Budget and Public Accounts told AFP. The 2.2% are “linked to mechanical indexation on the basis of inflation observed (in 2024) by the National Institute of Statistics (Insee)”, as is usually the case each year, a- he added, confirming daily information West France.
In the initial draft budget, Michel Barnier’s government had chosen to involve retirees in the budgetary recovery effort to the tune of 4 billion euros, by postponing the indexation of pensions to inflation by six months, a politically sensitive subject which had provoked an outcry.
INSEE is due to publish the final inflation rate for the month of November on Friday and will publish its estimates for the whole of 2024 in January.