Later on Thursday, the Chamber of Deputies confirmed that Minister of Social Security Romain Schneider told the parliamentary commission on social security about the 1.5% increase taking effect on 1 January 2020.
The reason for increasing pension amounts is an adjustment to the automatic mechanism. The cost of the increase is estimated at €75 million, but is expected in the 2020 budget. State contributions to pension funds will reach a total sum of €1.9 billion.
The State will contribute a total of €3.7 billion to different social security organisms in 2020. Alongside pension contributions, the budget will account for €1.3 billion towards health insurance, €297 million towards nursing insurance, €86 million towards mutuality, and €7 million for accident insurances. As well as increasing pensions, the social security budget will also account for the next salary indexation, although the date for the measure is not yet known.
