Are you planning to go full rate? Here is the amount of your payment after the increase

Significant changes are planned for retirees from the start of 2025. Wednesday January 1, a revaluation of basic pensions came into force. Every year, retirees' pensions are reassessed to take into account changes in inflation. The rule provides for an indexation of basic retirement pensions on inflation recorded by INSEE, in other words on “the annual average of consumer prices, excluding tobacco, calculated on the last twelve monthly indices of these prices published by INSEE the penultimate month preceding the date of revaluation of the services concerned”.

This year, retirement pensions recorded a
increase of 2.2%a decision directly linked to the failure of Michel Barnier's government to adopt the Social Security budget at the beginning of the month. In fact, the censorship of this project prevented the application of the under-indexation of pensions initially planned. Consequently, pensions were revalued following the evolution of inflation, in accordance with the legal provisions in force. For a pension of €1,200, this represents an increase of €26.4 per month. The first increased payment will fall in February.

Retirement Insurance reveals the amount of
minimum contribution (MiCo) a you MiCo increased

Moreover, the government has implemented a significant increase in minimum pensions. Thus, the Retirement Insurance has just published a circular in which appears the amount of
minimum contribution (MiCo) and increased MiCo for those preparing to retire in 2025.

A real safety net for small pensions, the minimum contributory amount (MiCo) constitutes an essential guarantee for retirees who have completed a full career at full rate. This device aims to ensure a basic incomea particularly valuable protection for those who have received modest salaries throughout their professional career.

Minimum retirement for new starts

To benefit from the minimum contribution (MiCo) of €747.69 gross per month (i.e. €8,972.30 per year), you must have paid the full rate. This implies having validated every required quarter. This condition is distinct from the legal retirement age and may also concern early departure due to incapacity for work.

Concerning the increased MiCo, it amounts to €893.65 gross per month (or €10,723.88 per year). To touch it, you must be able to justify 120 quarters contributedthe equivalent of 30 years of effective work.

Who benefits from this “minimum pension”?

In 2025, the MiCo will be revalued to align with the
minimum wage level. This barrier against the precariousness of seniors does not, however, protect everyone. The minimum contributory amount (MiCo) only applies to the basic pension, paid by organizations such as Carsat or Cnav.

In addition, rights from supplementary pensions are often added. However, the latter do not provide for a device equivalent to the MiCo. It is therefore essential to
make the distinction clearly to correctly estimate and forecast the total amount of your retirement.