Pensions: the Minister of Labour wants mothers to benefit more from the child benefit

The French Minister of Labor, Jean-Pierre Farandou, has announced plans to revise the child allowance bonus for retirees, aiming to ensure greater fairness between mothers and fathers. The proposed change would adjust how the 10% pension increase for parents with three or more children is distributed, shifting the benefit more toward mothers and less toward fathers. This initiative forms part of broader efforts to equalize family-related rights between genders within the retirement system. Currently, the 10% bonus applies to retirees who have had at least three children. However, due to differences in average pension levels, men typically receive higher pensions than women, the current system disproportionately benefits fathers. According to the minister’s office, while the number of fathers and mothers receiving the bonus is roughly equivalent, the actual amounts paid to men are significantly higher. As a result, men capture two-thirds of the solidarity effort directed toward large families through the pension system. The goal is to redirect this support toward those who need it most, particularly those with smaller pensions or irregular careers. Farandou explained that he is working on a text to be included in the 2027 Social Security budget, which will aim to better align the distribution of family-related benefits. He emphasized that the objective is not to cut costs but to improve equity. “It's a choice of justice,” he stated, highlighting the importance of recognizing the impact of parenthood, especially for women who often bear a heavier burden in terms of career interruptions and lower lifetime earnings. The minister noted that decisions on this issue have not yet been finalized. His team stressed that the reform seeks to address long-standing inequalities rather than introduce new financial burdens. The proposal reflects growing awareness of the gender disparities embedded in the pension system, particularly regarding how family responsibilities affect long-term income and retirement benefits. In addition to revising the child allowance bonus, Farandou addressed other ongoing debates surrounding pension reforms. One such topic involves the potential reduction of social security contributions to bring gross salaries closer to net salaries. This idea was recently advanced by presidential candidate Édouard Philippe. Farandou acknowledged the popularity of the concept but cautioned against simplistic solutions. “Everyone wants to talk about salary gross versus net,” he remarked, noting that reducing contributions would require careful consideration and would ultimately need to be funded through taxation. He estimated that a two-point reduction in gross salary contributions would result in a monthly net gain of approximately 30 euros for a worker earning the minimum wage. However, if financed by increasing VAT, this could lead to additional expenses of up to 15 euros per month for the same worker. Farandou pointed out that these figures highlight the complexity of the issue, emphasizing that there is no “magic money” to be found simply by adjusting contribution rates. Instead, any changes must be carefully balanced to avoid unintended consequences. As discussions continue, the government faces pressure to find sustainable solutions that balance fiscal responsibility with social equity. With the upcoming parliamentary debate on pension reforms, the focus will likely remain on how best to address both the financial challenges facing the Social Security system and the long-standing inequities affecting women in particular.