Equitable Pensions: Bridging the Gap for Private Sector Retirees

The Institut national de sécurité sociale (INSS) stated in August 2026 that an old-age pension increase, reaching 60% of the last net salary, applies to workers who concluded their careers in state-budgeted positions. Specifically, the Institut national de sécurité sociale (INSS) specified in August 2026 that this measure increasing the old-age pension to 60% of the last net salary concerns workers who finished their careers in jobs paid from the state budget. The application of this same process to the para-state and private sectors was planned as a second step. Private sector retirees are also entitled to a dignified pension, according to the stated intent.

The Growing Pension Divide

Old pensions had become insufficient given the rising cost of living. Indeed, the old pensions had become insufficient in the face of the cost of living, creating a pressing need for reform across all sectors. The state expects the private sector to increase production, investment, employment, and contribution payments. The state, in its broader economic strategy, asks the private sector to produce more, invest more, employ more, and pay more contributions, recognizing its vital role in the national economy. Extending the formula of 60% of the last net salary to thousands of heterogeneous employers would necessitate difficult decisions. These choices include either an increase in contribution rates and ceilings or a permanent state subsidy to the Institut national de sécurité sociale (INSS). Extending the 60% of last net salary formula to thousands of heterogeneous employers would impose difficult choices that require careful consideration of their economic impact.

Erosion of Trust and Fairness

The private sector retiree seeks equitable treatment rather than privilege in pension provisions. When one category of pensioners experiences improved conditions while another awaits action without a defined timeline, it introduces more than just financial risk. This disparity can lead to an erosion of trust in the overarching pension system. When one category sees its situation improved while another waits without a precise calendar, the risk is not only financial; trust in the system erodes significantly. A fundamental expectation for workers is the assurance that their contributions today will guarantee future protection under clear, established rules. A worker must be able to think: 'I contribute today because I know that, tomorrow, the system will protect me according to clear rules.' This foundational belief is key for maintaining confidence in social security mechanisms. The private sector retiree asks for equitable treatment, not privilege, noting a desire for fairness rather than special advantages within the pension framework.

A Call for Dignity and Equity

The National Assembly presented the revalorization of public sector pensions in 2020 as a first step towards broader reforms. This initial action was based on the premise that public sector retirees are entitled to a dignified pension after their years of service. The underlying principle extends to all workers, advocating that retirement should be a period when society acknowledges the work accomplished and ensures a time of dignity for individuals. Retirement should be the moment society recognizes years of work accomplished and a time of dignity, reflecting a societal commitment to its aging population. This perspective emphasizes the importance of a secure and equitable retirement for all sectors. The intention was to apply a similar process to para-state and private sectors in a subsequent phase, reinforcing the idea of universal entitlement to a dignified retirement. The initial step for public sector employees showed the broader societal commitment to recognizing contributions through adequate post-employment provisions, setting a precedent that now demands consistent application across the entire workforce.