French pensions to be tied to inflation in July, labour minister says
French pensions are to be tied to inflation from this summer in an effort to increase retirees spending power, France’s labour minister Olivier Dussopt has said.
“What we want is for this inflation indexation to be valid from July,” he told RTL on Tuesday (May 24).
Inflation in France reached 4.8% year-on-year in April, and could rise to 5.4% in June, the national statistics bureau Insee states.
“If we take into account an inflation of 4%, for example, for a pension of €1,200, it is an increase of €45 per month,” Mr Dussopt said.
“This is not insignificant and it enables people to deal with inflation.”
Only French pensions under the régime général, which includes private and public service retirees, will be indexed to inflation. Around 80% of pensioners in France are under this scheme, which is managed by the Caisse nationale d’assurance vieillesse (Cnav).
Mr Dussopt’s comments come after nine pensioners’ unions called for an increase in pensions of “at least 4.5%, with retroactive effect from January 1 this year”.
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