Agirc-Arrco is the supplementary pension system for employees in the private sector, which concerns more than 10 million people. According to this organization, the result for the year 2022 is positive at 5.1 billion euros. Contribution rates, which vary between the employer’s and the employee’s share, are subject to regular changes, which can make it difficult to navigate.
In 2023, the contribution rates have been slightly modified compared to the previous year. Agirc-Arrco is therefore a mandatory supplementary pension scheme for private sector employees in France, which aims to improve the amount of pensions paid by the basic social security scheme.
Complementary Agirc-Arrco is compulsory for employees in the private sector in France due to the establishment of a compulsory supplementary pension system. This was put in place to provide some financial security for workers once they retire.
The pension system in France is based on three pillars: the basic pension, the compulsory supplementary pension and the optional supplementary pension. The basic pension is managed by the general social security system, while the compulsory supplementary pension is managed by Agirc-Arrco.
With regard to employee contribution rates, the Agirc-Arrco contribution rate is set at 7.87% in 2023, which represents a slight increase compared to the previous year. It should be noted that this rate is applied to a part of the compensation of employees, which is capped at a certain level called “tranche A”.
The employer contribution rate, meanwhile, is set at 12.95% in 2023, which is also a slight increase from the previous year. This rate is applied to the total remuneration of employees.
It should also be noted that the Agirc-Arrco contribution rates may be adjusted each year according to changes in the financial situation of the scheme. Indeed, the Agirc-Arrco is a pay-as-you-go scheme, which means that the contributions paid by the active people are used to finance the pensions paid to retirees. Thus, if the financial situation of the scheme deteriorates, it may be necessary to increase the contribution rates to guarantee the sustainability of the system.
In conclusion, the Agirc-Arrco contribution rates were slightly modified in 2023, with an increase in the contribution rate for employees and employers. These rates may vary depending on the collective agreement applicable to the company, and may be adjusted each year depending on the financial situation of the plan.
