Why are the French angry with their government?
In Paris, fears are growing over the government’s decision to change the public pension age from 62 to 64. This means people have to work longer to receive their full public pension.
French President Emmanuel Macron has rushed reforms in the House of Commons to raise the retirement age from 62 to 64 without a vote. Protesters in Paris clashed with police on Place de la Concorde near the Reichstag.
What are the new pension reforms trying to do?
In France, all retirees receive a public pension. Pensions are funded by a mandatory payroll tax paid by those currently working. This means that several generations have been able to retire with a secure pension.
But the French government argues that as life expectancy in France increases, so does its population. This means that there are more retirees than new entrants to the workforce.
The change in retirement age from the current 62 to 64 means that citizens will have to work longer or pay payroll taxes for more years to receive their full public pension. increase.
For example, if you were born in 1961 and are retiring this year, you will have to work three more months to receive your full pension. Also, born in 1968, he is 64 years old and should retire after 43 years of service.
However, there are exceptions. Workers between the ages of 14 and her 19 can seek early retirement, as can civil servants engaged in physically or mentally demanding work.
The government has also said it will introduce a “seniority index” to see if companies are making progress in hiring and training seniors so they are not left behind as retirement age increases. The reform also puts an end to “special schemes” that give different categories of workers different retirement ages and benefits. This includes railway workers, electricity and gas workers, and central bank officials.
However, the changes apply only to new workers in these sectors. Existing workers will benefit from special schemes. The minimum retirement age applies only to those who have worked enough years to qualify.
Why did this make people angry?
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Reporting: Diksha Munjal
Narration & Production: Abhinaya Sriram
