If an employee meets all the conditions of the statutory retirement age and has at least 10 years of seniority in his company, he is entitled to severance pay. In the event of voluntary retirement, for example when the employee has accumulated all his pension rights, the Labour Code provides for 1/2 month`s salary between 10 years and less than 15 years of service, 1 month`s salary between 15 years and less than 20 years of service, 1 month`s salary between 20 years and less than 30 years of service. From the age of 30, the amount of the old-age allowance corresponds to 2 months` net seniority salary. The monthly salary used for the calculation of retirement benefits is based on one of the following two calculations: the employer may decide to grant his employee remuneration for the end of his career in addition to the statutory or contractual old-age allowance. End-of-career benefits are financed exclusively by the company. The obligation to contribute to the end-of-career allowance depends on the circumstances in which the employee leaves: If the employment contract is not terminated (pre-school early retirement scheme, occupational early retirement scheme, etc.) Benefits paid at retirement that do not exceed 10 annual social security ceilings (5 for employees) are exempt from contributions up to a limit of 2 annual social security ceilings. The voluntary retirement benefit©©is subject to contributions (from Social Security, CSG: titleContent and©© CRDS: titleContent) unless you©choose to retire under a termination protection plan (ESP). If the pension is at the initiative of the employee, the amount of benefits at the end of the career is calculated as follows: If you decide to leave your company to retire, you are entitled to an old-age pension if you have at least 10 years of service in the company. The old-age allowance is a bonus that a worker in the private sector receives at the end of his career when he applies for payment of his pension rights. To benefit from it, he must meet the conditions of attribution.
The payment of this compensation is obviously the responsibility of the company. To claim this bonus, an employee must meet three conditions: The calculation of the pension is based on the gross remuneration received at the time of sending the retirement letter. In the case of an incomplete year, earnings are calculated in proportion to the number of full months. The pension benefit©©is commonly referred to as© the retirement premium©. Information: If your income changes after your retirement (amount, composition), log in to the “Manage my withholding tax” service in your personal space to adjust your tax rate and, if applicable, your contemporary rates to your new situation. For more information, see the “Manage my withholding tax>I report a change in my income” section of this website. The retirement allowance (with the exception of the employment protection plan) is wages, not earnings. Starting at 1.
Euro, it is subject to social security contributions and CSG-CRDS. Article 29 of Law No. 2019-1479 of 28 December 2019 on finances for 2020 abolished the progressive scheme of early retirement benefits received from 1 January 2020. Only the quotient mechanism is retained. Do you decide to retire or your employer is retiring? You can receive an old-age allowance if you meet certain conditions. The voluntary statutory old-age allowance is void as long as the employee has not yet completed his seniority. It then corresponds to: – 1/2 month`s salary from 10 years of service; – 1 month`s salary from 15 years of service; – 1.5 months` salary of 20 years or more; – 2 months` salary for 30 years of service. Example: Some collective agreements provide for the payment of pension benefits without seniority conditions.