Minimum contribution: conditions, amount and calculation

The minimum contributory amount (MiCo) is a floor amount for the basic pension. Its objective is to enable people who have contributed on low salaries to have a retirement with a decent minimum income. Obtaining conditions, calculation method, amount and steps to benefit from it… We tell you everything!

What is the minimum contribution (MiCo)?

The floor amount of the basic pension in France

The minimum contributory amount (MiCo) is a system which guarantees a minimum retirement pension to retirees who have contributed on low salaries. This floor amount of the basic pension applies, subject to conditions, to the pensions of private sector employees whose pension contributions are not sufficient to live decently.

Retirement pension increased to guaranteed minimum level

The minimum contributory amount (MiCo) is added to the basic retirement pension so that it can reach the guaranteed minimum level. In other words, if an individual’s basic pension is lower than the contributory minimum, it is increased up to this threshold.

Who is entitled to the minimum contributory pension?

To benefit from MiCo, you must have contributed to the general Social Security old-age insurance scheme. In detail, the following are concerned:

• private sector employees (general scheme),
• agricultural employees (MSA),
• the self-employed (craftsmen, traders, industrialists, self-employed, liberals, individual entrepreneurs, managers of SNC, EURL and SARL).

What are the conditions for obtaining the minimum contribution?

To obtain the MiCo, several conditions must be met.

Have reached legal retirement age

The minimum contribution is only granted to people who have reached the legal retirement age. From 62 to 64 years old, it varies depending on the date of birth. People who have exceeded full retirement age, i.e. 67, can also benefit from it.

Have validated the required number of quarters

Another condition is to justify the minimum number of quarters allowing you to benefit from full-rate retirement (between 166 and 172, depending on the year of birth).

Have liquidated all of your retirement rights

The MiCo beneficiary must have requested all the pensions to which he is entitled (basic and supplementary pension) on the same date.

No income requirement

The contributory minimum is allocated regardless of the income the person has in addition to their pensions (professional income, rent, allowances, capital income, etc.).

Do not exceed the monthly ceiling for personal pensions

The allocation of this minimum cannot, however, bring the total amount of pensions (basic pension plus supplementary) beyond the monthly ceiling for personal pensions. It is revised on the same dates and under the same conditions as the minimum wage. Since its revaluation in November 2024, the ceiling has been set at 1394.86 euros net monthly. If exceeded, the MiCo is reduced proportionately.

What is the amount of the minimum contributory pension in 2024?

Composition of the MiCo

The monthly amount of the minimum contribution is broken down into two parts:

• the basic increase (for the total validated insurance period),
• the increase in respect of the contributed period (for retirees with an insurance period of at least 120 quarters under the general scheme).

Basic amount and increase in the minimum contributory amount

According to the CFDT Retraités, the basic amount of the MiCo amounts to 733.03 euros in the event of liquidation in 2024. For retirees with an insurance period of at least 120 quarters, the amount is increased, it reaches (876.13 – 733.03): 143.10 euros.

If the career is not complete, the minimum is calculated in proportion to the quarters validated.

How is the minimum pension contribution calculated?

The amount of the minimum contributory amount is calculated on liquidation, on the effective date of the pension. If the total retirement pensions exceed the personal pension ceiling, the increase granted in respect of the contributory minimum is reduced to the extent of the excess.

This ceiling is calculated on the basis of the gross amount of pensions (including increases), but without taking into account certain elements, such as the premium, the increase for third parties and the single lump sum payment.

Examples of calculation based on the retiree’s situation in 2024

For a beneficiary of the basic increase

Let’s take the example of an employee born in January 1961, who has completed 162 quarters (out of the 168 required), including 116 contributions and whose basic pension amounts to 430 euros. The calculation of the amount of its basic increase is as follows:

• 733.03 euros × 162 / 168 = 706.85 euros
• subtracted from the amount of his basic pension 706.85 – 430 = 276.85 euros

The retiree will therefore receive a basic pension of 430 euros, to which is added an increase of 276.85 euros, i.e. in total, 706.85 euros per month.

For a beneficiary of the increase for the period contributed (more than 120 quarters contributed)

Let’s take the example of an employee born in 1958 who has completed 172 validated quarters, including 158 contributions. He is therefore entitled to the increase (because the number of his contributed quarters is greater than 120). As a reminder, his year of birth requires that he have validated 167 quarters.

Knowing that the amount of his basic pension amounts to 570 euros, the calculation of the amount of his minimum contribution will be as follows:

• Basic increase: 733.03 euros × 167 / 167 = 733.03 euros.
• This amount, subtracted from that of his basic pension (733.03 – 570 = 163.03 euros), gives the amount of his minimum contribution.
• Increase for the contributed period: 143.10 × 158 / 167 = 135.39 euros

The retiree will therefore receive a basic pension of 570 euros, to which is added the basic increase of 163.03 euros and the increase for the contributed period, 135.39 euros. In total, a pension amounting to 868.42 euros.

What is the minimum contribution for polypensioners?

In the case of multiple pensioners, all of the compulsory basic schemes are retained:

• We retain the duration of insurance taken into account by each of the plans.
• All quarters are totaled even if they overlap and exceed four per year.

If the insurance period does not exceed the contribution period of the general scheme

The entire non-increased minimum is reduced taking into account the duration of insurance under the general scheme in relation to the maximum insurance duration. The calculation formula is as follows: Full unincreased minimum × Insurance duration under the general scheme / Maximum insurance duration.

Let’s take the example of a retiree born in 1958 and who has completed 160 quarters, including 145 paid contributions (98 to the general system and 47 as a civil servant):

• The required 167 quarters are not met. The non-increased minimum contribution will therefore be: 733.03 euros × 145 / 167 = 636.46 euros.
• The contributor having not contributed 120 quarters to the general scheme, he is not entitled to the increase.

If the insurance period exceeds the contribution period of the general scheme

The entire non-increased minimum is reduced taking into account the duration of insurance in the general scheme in relation to the duration of insurance in all schemes.

The calculation formula is as follows: Unincreased full minimum × Duration of insurance under the general scheme / Duration of insurance under all schemes.

Let’s take the example of a retiree born in 1958 and who has a total of 170 quarters, including 145 contributions (125 to the general system and 20 to that of the self-employed):

• The duration of insurance is greater than the minimum required. Applying the formula above, the non-increased MiCo amounts to: 733.03 × 145 / 167 = 636.46 euros.
• The calculation of the increase in the contributory minimum corresponds to the following formula: Increased minimum – Reduced minimum × Number of quarters contributed to the RG / Number of quarters required, i.e. 868.42 – 733.03 × 125 / 167 = 103.62 euros.

The increased minimum contribution therefore amounts to 956.20 euros (636.46 + 319.74).

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What steps are necessary to obtain the minimum contribution?

The allocation of the minimum contribution does not require any specific procedure. It is the Retirement Insurance which, in view of the amount of basic and supplementary pensions allocated to the insured, will check whether he or she can claim the minimum contributory amount. Any retiree with modest salaries who believes they are the victim of an oversight or error can make a claim to the Retirement Insurance Office.

What are the differences between the solidarity allowance for the elderly (Aspa) and the minimum contribution?

The solidarity allowance for the elderly (Aspa), formerly called the old age minimum, is a differential allowance. Just like the contributory minimum, its objective is to increase the amount of small pensions. However, unlike MiCo, Aspa is paid regardless of the number of quarters validated and is not taxable. In addition, the sums allocated under the Aspa are partly recoverable from the beneficiary’s estate.