As you approach retirement, you can be easily worried by discovering that your number of quarters is very insufficient to hope for a reasonable basic retirement pension. The contributory minimum is therefore used to allow retirees from the general Social Security old-age insurance scheme who have contributed on low wages to receive a minimum amount of basic pension. In this case, if your basic pension is less than this amount, it is increased to reach this level. Explanations.
The contributory minimum is essential in order to guarantee modest pensioners who have contributed little, a minimum base as a retirement pension. To calculate it, it is necessary to take into account the monthly ceiling of personal pensions. Thus, this ceiling is regularly revised on the amount of the Smic and was revalued, on January 1, 2023, to 1,309.75 euros per month, i.e. an increase of 35.99 euros. It is therefore impossible for the combination of the basic pension and the supplementary pension to exceed this ceiling. If you are eligible for the contributory minimum, your pension is indexed to this new amount.
For a contribution equal to 120 quarters, the minimum contribution amounts to 8,970.87 euros gross per year, or 747.57 euros gross per month. If, on the other hand, you have not been able to contribute 120 quarters and you are below this threshold, your minimum contribution will be 8,209.62 euros gross per year, or 684.14 euros gross per month. Depending on your number of contribution quarters, you can obtain the minimum basic contribution and the maximum increase of 63.43 euros or the maximum increased minimum contribution of 747.57 euros. If you receive additional sums allowing you to go beyond the personal pension ceiling, your pension will be automatically reduced on this basis.