Revaluation of pensions: here is how much your pension will increase in 2025

Deputies and senators reached an agreement on the Social Security budget for 2025. And in particular on the increase in basic pensions next year, well below inflation for most retirees.

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There will indeed be an increase in basic pensions for all retirees from January 1, 2025. But this increase will disappoint many people since it will be limited to 0.8% for most retirees and will reach a maximum of 1.6% throughout the year for those who receive less than 1,500 euros gross per month. This Wednesday, November 27, deputies and senators, meeting in a joint committee (CMP), have in fact reached a compromise on the Social Security financing bill (PLFSS). A text which, in its article 23, initially provided for a postponement from January 1 to July 1, 2025 of the increase in basic pensions. A “freeze” of pensions lasting six months dismissed on November 12 by the Minister of Budget and Public Accounts. Laurent Saint-Martin then affirmed that all pensions would be revalued on January 1, “up to 0.9%, that is to say half of inflation”with a catch-up on July 1 for pensions below the minimum wage.

To establish this revaluation of 0.9%, the government took as a reference the average annual inflation excluding tobacco between January and December 2024, estimated at 1.8%. A first deviation from the calculation formula which should have taken into account the increase in prices observed between November 2023 and October 2024, which would then have resulted in inflation of 2.2% and a revaluation of half, i.e. 1, 1%. Finally, the amendment retained in CMP states a revaluation of 0.8% on January 1. Then, on July 1, 2025, retirees whose total pensions (basic and supplementary) do not exceed 1,500 euros gross will benefit “an additional revaluation allowing an overall revaluation of 1.6% for 2025”specifies the text. A new revaluation of 0.8% will therefore be granted to them, accompanied by a catch-up corresponding to the first six months of the year.

20 euros shortfall per month for a basic pension of 1,400 euros net

Thus, while it was expected that retirees who receive less than the minimum wage (1,801.80 euros per month) take full advantage of the revaluation indexed to inflation, only those receiving a monthly total of 1,500 euros gross will be eligible for this increase. An increase of 1.6%, “of the order of the level of inflation over the period preceding July 2025”according to the amendment, much lower than that of 2.2% which would have been retained in normal times. Note that this 1.6% increase will be decreasing for retirees receiving slightly more than the limit of 1,500 euros. Up to 1,505 euros gross, the increase will be 1.4%, then 1.2% up to 1,508 euros pension and finally 1% up to 1,513 euros gross.

THE loss of earnings will therefore be more or less high for retirees. While with a basic pension of 900 euros, the monthly increase will be 14.4 euros, the “loss” will be 0.6% (2.2%-1.6%), or 5.4 euros per month. With a total pension of 2,800 euros net, including 1,400 euros of basic pension, the increase will be limited to 11.2 euros, and the monthly loss will reach 1.4% (2.2%-0.8%) , or 19.6 euros.