New regulations regarding the combination of employment and retirement pensions are set to take effect in France starting next January. Two decrees published on Tuesday, November 3, confirm that new retirees under the age of 67 who resume work and earn more than 7,000 euros gross per year will see their pension amounts reduced. This reform, adopted last year, applies to all individuals receiving their first retirement pension from January 1 onwards.
Under the new rules, any insured person who retires before the legal age—currently 62 years and 9 months, gradually rising to 64—and resumes activity will have 100% of their earnings deducted from their pension. However, those retiring between the minimum legal age and the "decote cancellation" age of 67 can fully combine their pension with up to 7,000 euros in activity income, which includes sick leave indemnities. Any income exceeding this threshold will result in a deduction of 50% from the pension. The 7,000 euro ceiling is scheduled to evolve annually in line with the Social Security ceiling, reflecting wage increases. Once individuals reach 67 years of age, they will be permitted to fully combine their pension and earnings without restriction.
A second decree outlines various professions and activities eligible for derogations. Several professionals will be allowed to fully combine their pension and income, including family childminders, caregivers for the elderly or disabled, building caretakers provided with housing by their employer, and healthcare workers in areas identified as medical deserts. Additionally, certain activities are exempt from pension reductions, such as income from rural accommodation in heritage properties and accessory artistic, literary, or scientific activities.
According to the Court of Auditors, approximately 710,000 people combined employment and retirement in 2020, earning an average of 9,000 euros annually from their work. Previously, two systems coexisted: full combination for those with a full-rate pension and capped combination for others, limited to 160% of the gross minimum wage or their last gross monthly salary, whichever was more advantageous.
The new threshold has sparked debate in the National Assembly. Michel Criaud, a deputy from Horizons and Independents, criticized the limit of 7,000 euros per year as less than 600 euros per month. He noted that while a 64-year-old retiree with a full-rate pension earning 20,000 euros annually currently loses nothing, they would lose 6,500 euros under the new rules, urging the government to review this threshold. In response, Labor Minister Jean-Pierre Farandou argued that the previous system was highly inequitable and favored uninterrupted careers, allowing some to optimize their situation while restricting those with career interruptions. He highlighted that the reform generates 2 billion euros annually for Social Security and stated he would not rule out adding further exceptions for jobs deemed of general interest.
Sources: Le Figaro.