With over 15 million French residents receiving a state pension, major protests and public unrest are facing the country due to new pension reform. In France, mandatory social security taxes are taken from paychecks and a percentage of that tax then goes into the national pension fund. Pensions are then distributed to retirees that meet the required qualifications. Furthermore, workers can also contribute to a compulsory supplemental pension and a voluntary private pension.

On January 10, the French government revealed new changes to the national pension system. The controversial policy includes the change that in order for French workers to earn a full pension after 2027, they must work for 43 years. Additionally, the standard retirement age to earn a pension is being raised gradually from 62, with the age set to reach 64 in 2030. The new policies still need to be introduced into the parliament and passed into law, and Emmanuel Macron’s party does not have a majority in parliament, which could cause issues passing it through the lower parliament. All left-wing and far-right wings are opposed to the plan and have expressed that they will not pass the bill. Nonetheless, the French republicans have said they will sign on to some form of the bill. If not enough members of parliament pass the bill, Macron could technically use constitutional exceptions to force it through the lower parliament, however, since it is such a controversial issue, forcing the bill could increase public unrest. Thus far, all labor unions have unanimously rejected the reforms, and over 60% of French workers oppose the plan, sparking a series of protests. On January 19, dubbed “Black Thursday,” there were over 1.1 million protesters across France. Protestors walked out of schools, work, or gathered outside of government buildings around France. Trains were not running, the Eiffel tower was closed, and even workers who were not protesting still supported those who were. Many French workers agree that the action disproportionately affects people of lower socioeconomic status, and it “will unfairly impact blue-collar retirees with arduous jobs, who often start their careers earlier and have a shorter life expectancy, on average, than white-collar ones.”

While the issue is controversial, it is certainly not new. When Macron first ran for French president in 2017, one of his platforms was addressing the issues with the French pension system. Currently, there are global issues with the age of populations. Essentially, in France, there are an increasing number of workers who are getting closer to retirement age, and fewer people are paying into the pension fund. Consequently, there is a growing deficit and intensifying concern about the sustainability of the current pension system. In 2019, Macron attempted to introduce a bill that made the pension system a “point system,” so workers could retire once they reached enough points. However, the plan “left many French people confused and worried that they would end up with less money” which sparked protests, and eventually, the plan was retracted due to the COVID-19 pandemic. The difference between 2019 and the new plan is the 2019 “point system” did not raise the retirement age. Now, Macron wants to balance the pension budget by making people work 2 years longer. Furthermore, the Labor Ministry estimates “planned reforms would yield an additional 17.7 billion euros ($19.1 billion) in annual pension contributions, allowing the system to break even by 2027.”

Preeminently, it is a matter of if the protests will be effective in stopping the law. Going off of precedent in 2010, when the age was raised from 60, the government pressed forward with the new policy even with protests. However, more recently in 2019, strikes went from 5 December 2019 until 20 February 2020, and the strikes stopped because the government withdrew the initiative with the rise of COVID-19. Currently, union workers warn that this is just the beginning of strikes, with the second day of strikes planned for Jan. 31.  The worker’s unions believe, “the government must give up, [for] this reform is unacceptable and goes against the interests of the population.” At this point, Macron plans to continue with the plan, yet public unrest is rising with upset due to the increasing cost of living. Thus far, it is unclear whether protests will continue and lead to negotiations between the unions and the government. 

Comparing and Contrasting the Old Pension System with the New Changes 

• You must work 42 years to claim the pension, with the changes a full pension from 2027 will require working for 43 years
• The government encourages people to work past the pension age, and you get a pension raise for every quarter after you work
• You can retire a few years earlier if you worked from a very young age or in an unhealthy environment. Police officers, prison guards, air traffic controllers, and other public workers in jobs deemed physically or mentally arduous will keep the right to retire early. However, there is an end to so-called “special regimes” with different retirement ages and benefits for rail workers, and electricity and gas workers, among others.
• You can also retire between the age of 55-59 if you are disabled 
• The pension rate depends on how much the annual salary that you paid for social security. You can receive a max of 50% of your basic salary (this can change if you worked longer). The pension rate can also change based on periods you paid into a social security thing like parental leave or unemployment. 
• Guaranteed minimum pension income of not less than 85% of the net minimum wage, roughly €1,200 (£1,060) per month at current levels, for new retirees.