How much will pensions for private-sector employees increase?

The social partners will increase supplemental pensions for private-sector employees (Agirc-Arrco) by between 1.5% and 1.7%
 

The social partners plan to increase supplemental pensions for private-sector employees (Agirc-Arrco) by between 1.5% and 1.7%, a source close to Agirc-Arrco said Thursday.

"The decision" on the exact amount of the annual adjustment "will be made on Tuesday" by the Agirc-Arrco board of directors, the source told AFP.
 

Agirc-Arrco pensions are increased at the beginning of November, taking into account, in particular, the inflation rate (1.8%) and various factors such as the scheme’s financial reserves. A 1.5% increase would cost the joint-management plan—administered by unions and employers—1 billion per year. A 1.7% increase would cost 1.7 billion.
 

A year ago, Agirc-Arrco increased its pension payments by 4.9 percent. In the fall of 2023, the Agirc-Arrco system’s strong financial health had caught the eye of the Borne administration, which had threatened to tap into the system’s funds to balance the accounts of the universal pension system and, in particular, to finance the increase in small pensions called for by the pension reform.
 

Employers' groups and unions had strongly opposed this plan, which was ultimately never implemented. In 2023, Agirc-Arrco paid out 92.4 billion euros to its 14 million retirees, 5.9 billion more than in 2022.

For its part, the government has just announced that it is postponing until July 1 the revaluation of pensions under the general system, which had been scheduled for January 1—a measure that will allow it to save 4 billion euros in the Social Security budget for 2025.