This adjustment aligns with inflation rates and is a substantial revision from the government's earlier plan to raise pensions by only 0.8%.

Criticism from various political forces prompted the government to revise its plans, introducing a new scheme to protect the purchasing power of lower-income retirees.

The previous budget proposal included a total of 1.6% pension increase, split into two smaller increases, but was based on outdated inflation projections.

Initially, the government aimed to delay the pension adjustment and proposed lower increases, which faced significant political backlash.

On December 10, 2024, the French government announced a significant increase in pensions by 2.2% starting January 1, 2025, a move aimed at benefiting retirees amid rising inflation.

Marine Le Pen, leader of the National Rally, had previously threatened to vote for a motion of censure unless the proposed pension desindexation was abandoned.

The new 2.2% increase is directly tied to the actual inflation rate recorded in 2024, as reported by the National Institute of Statistics and Economic Studies (Insee).

Following a recent motion of censure that rejected the government's previous budget proposal, standard rules now apply, resulting in the 2.2% adjustment based on inflation figures as of October 2024.

Unions have expressed relief and satisfaction with the enforcement of this pension adjustment, viewing it as a victory for retirees.

The increase is mandated by the Social Security Code, which ties annual pension adjustments to the average annual consumer price index, excluding tobacco.

This final pension increase will lead to an additional 6.5 billion euros in expenditures for the social security system compared to 2024, exceeding the government's original proposal.

Union leaders have praised the increase, although they emphasize that more support is needed for those on smaller pensions.