What is the minimum wage required to qualify for a quarter of pension coverage in 2024?

For the Cnav (National Old-Age Insurance Fund) to recognize a quarter of retirement credit, an individual must have earned income subject to contributions equal to 150 times the hourly rate of the SMIC (Interprofessional Minimum Wage with Growth).

This rule thus allows individuals who work part-time or on an irregular basis throughout the year to accumulate up to four pension quarters per year, providing some flexibility in meeting the required number of quarters.

In 2024, to earn credit for one quarter of retirement benefits, an employee must now earn a minimum of €1,747.50, calculated based on the gross minimum wage (SMIC) set at €11.65 per hour as of January 1 of this year. This amount represents an increase of €57 compared to the previous year, reflecting the change in the hourly minimum wage.

It is important to note that this increase does not affect employees earning the minimum wage, as their pay follows the same trend, thereby maintaining the thresholds for qualifying for quarters of coverage. However, it has negative implications for other workers.

Employees whose pay is not indexed to increases in the minimum wage now face a greater challenge in qualifying for a quarter. 

This is particularly true for young people who hold summer jobs, as well as for individuals who earn slightly more than the minimum wage but whose monthly hours are limited or who do not work year-round.

Thus, changes in the thresholds for qualifying for retirement quarters may have varying impacts on workers depending on the nature and stability of their income, underscoring the need for special attention to ensure fairness in the system for qualifying for retirement quarters.