Increase to fight inflation
You have noticed it, you live it: prices have been rising steadily for a few months. The numbers fell inflation for the month of May is announced at +5.2%. This is a direct and immediate consequence of the war in Ukraine. Following the invasion of the Russian army, sanctions were taken by the countries of the world against the country of Vladimir Putin. Result of the races, the prices increase since many raw materials come from Russia.
It all starts with fuel, which increases enormously, to more than two euros per litre. But this now affects the whole of society, with big increases on food products. Average French is impacted. The government must act. The increase in pensions will therefore be put in place to go in the direction of inflation.
4% increase for pensions
To estimate the necessary increase, lThe calculations are based on the average inflation of the last six months, which is more advantageous (for the increase) than the average of the last twelve months (due to the jump in inflation in February). Thus, last April, the Minister of the Economy, Bruno Le Maire, spoke of a revaluation which should reach 4%. This revaluation takes into account INSEE’s current inflation projection for May, at 5.2%. However, June inflation, which could reach 5.4% (again according to INSEE), would not be retained, because the final figures arrive too late for indexation on July 1, 2022.
Changes should be made in the future in the way of managing pensions according to inflation. This is at least what indicated, still in April, Bruno Le Maire. He wants a revision of the current rules for revaluing pensions, so that they are indexed “in a fairer and more protective way“.
But at the moment, he is aware of the urgency of the situation, as he explains on France Info: “ Everything costs more and your income is the same. Because you are retired. It’s scary. And I know a lot of retirees who feel like they’re being squeezed by inflation. So we tell them: next July, your retirement pensions will be adjusted to the level of inflation. It’s an emergency measure, a measure of justice. »
A revaluation from the summer of 2022?
It was the promise of Emmanuel Macron, and the latter intends to start his new mandate on the wheel hats. ” Immediately after the legislative elections, (…) the National Assembly and the Senate will be seized of a text on purchasing power, which will make it possible to index retirement pensions from the general scheme “. Emmanuel Macron is forced to wait for the legislative elections because they can change everything. We know that Jean-Luc Mélenchon hopes to see his party, France Insoumise, win the majority in the National Assembly. This could make him the new Prime Minister. The place of Elisabeth Borne, newly appointed to this post, is therefore precarious for the moment.
Despite the legislative elections, Olivier Dussopt, the current Minister of Labour, Employment and Integration in France, wishes that ” this indexation to inflation is valid for pensions in July. As part of the general scheme, the pension for the month of July is paid on August 9“. To give a concrete example, taking into account inflation at 4% for a pension of 1,200 euros, this is a gain of 45 euros per month“.
Pension reform is still planned
At the same time, the government is still considering the timetable for reforming the current pension system, the one that has been debated for months in society. The Minister of Labor indicates that “ the schedule is still under construction “.
” We will include the timetable for this reform and consultation in the government’s action plan. The President of the Republic gave us a month to develop it”. ” I think we can start this (the consultation on a reform) in September, in October. We must start with consultation and dialogue. As of today I am starting to meet the social partners“.
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