Oyster policy is denoted in purple.
French employees are entitled to old-age pensions through Social Security. The French pension system includes three forms of pensions:
- basic retirement pension;
- complementary retirement pension; and
- additional (private) pension.
While the first two pensions are mandatory benefits under Social Security, additional pensions are optional.
The minimum legal age of retirement is 62 years for employees born on or after Jan. 1, 1955. In addition to reaching the required age, to receive the full pension amount, employees must have also made the designated number of quarterly contributions. For example, a person born after Jan. 1, 1973, must make 172 quarterly contributions to qualify for a full retirement pension.
Exceptions to age and contribution requirements may apply where an employee retires:
- due to permanent incapacity for work attributable to an occupational disease or work accident;
- due to disability;
- after an exceptionally long career.
Employers aren’t required to provide mandatory pension funds in France beyond contributions to the basic retirement pension and complementary retirement pension.
Oyster will provide access to statutory pension schemes in accordance with the law.
Some companies may choose to offer all their employees supplemental retirement benefits such as Company Retirement Savings Plans (PER) contributing up to a maximum of 16% of the Social Security Ceiling (SSC).
Best in Class
Best in class companies may offer their employees the full cost of retirement benefits but this is unusual in France. Some complementary retirement schemes can be implemented for key executives mainly but they are very expensive and subject to a non-favourable tax treatment.