France updates pension calculations for parents

Starting September 1, 2026, the calculation of average annual income for French pension benefits has changed for parents who receive insurance duration increases for having children.

Under the new rules, the reference period used to calculate the average salary is shortened. For those with one child, the period decreases from 25 to 24 years. For parents with at least two children, the period is reduced to 23 years. This change applies to all French pension schemes, including the general regime and liberal professions.

By reducing the number of years considered, the calculation more effectively excludes lower-earning periods such as part-time work, parental leave, or early career stages. The new calculation is expected to be implemented via computer systems in 2027, which will include automatic recalculations for existing retirees.