Budget chart lacks new information

A recent report states that a chart published by the Ministry of Finance about the state budget does not provide new insights into the current financial situation, as experts were already aware of the circumstances for some time.

Civil servant pension contributions are unusually high

In both the private and public sectors, employee and employer contribution rates make up 28% of salaries. However, pension employer contributions for civil servants, funded by the State, are at a rate of 82%, which is 22 billion euros higher than normal. This is particularly evident in ministries with large numbers of civil servants, such as National Education, the Interior, and Justice.

High rates due to pension imbalances

The elevated contribution rate is due to the State needing to provide extra funding to address current pension imbalances. In the public sector, the ratio of retirees to active workers is 0.95, meaning there are fewer contributors than retirees. In contrast, the private sector has 1.5 active workers for every retiree.

Historical factors and current practices worsen the issue

In a normal system, the 22 billion euros in additional contributions would be shared across all sectors through a demographic compensation mechanism, with the private sector helping to cover part of the cost. However, the State took over the pensions of civil servants from La Poste and France Télécom during privatization, so those companies did not have to maintain high pension contributions. This situation is made worse by a decline in the number of civil servants and the use of contract workers, who are paid by the State but contribute to private pension funds, not the public system.

Proposed solutions to address the problem

To avoid increasing the additional contribution, the State has chosen not to expand the number of civil servants but instead to distribute bonuses, which are not counted toward pension calculations. This is especially problematic in ministries like National Education, where few bonuses are given. Experts suggest removing the 22 billion euros in additional contributions from ministry budgets, labeling them as pension subsidies to reduce the perception of salary deductions. They also recommend regularizing contract workers’ contributions and increasing civil servants’ salaries to align with inflation.