AGIRC-ARRCO
AGIRC-ARRCO is the mandatory supplementary pension scheme for employees working in the French private sector. In addition to the statutory state pension, employees accumulate additional pension rights through AGIRC-ARRCO throughout their careers.
Both employers and employees contribute to the scheme through payroll deductions. These contributions are converted into pension points, which are later used to calculate the employee's supplementary pension upon retirement.
How does AGIRC-ARRCO work?
The AGIRC-ARRCO scheme operates on a points-based system. Pension points are awarded based on the contributions paid during the employee's career.
At retirement, these points are converted into a supplementary pension that is paid in addition to the statutory French pension.
The longer an employee works and contributes to the scheme, the more pension points they accumulate.
What does AGIRC-ARRCO mean for employers?
Employers in France are required to calculate, withhold and pay AGIRC-ARRCO pension contributions for their employees.
These contributions form part of the social charges that must be processed through the French payroll system.
Proper administration is essential to:
- safeguard employees' pension rights;
- avoid payroll errors;
- comply with French social security obligations.
AGIRC-ARRCO and payslips
French payslips include specific contributions relating to the AGIRC-ARRCO supplementary pension scheme.
Both the employee and the employer contribute to the financing of the scheme.
Why is AGIRC-ARRCO important?
AGIRC-ARRCO is a key component of the French retirement system. For many employees, the supplementary pension represents a significant part of their retirement income.
Employers must therefore ensure that contributions are calculated, declared and paid correctly.
AGIRC-ARRCO for foreign employers
Foreign companies employing staff in France must also comply with AGIRC-ARRCO obligations. Pension contributions are part of the French social security system and must be properly managed through payroll administration.
Do you have questions about AGIRC-ARRCO or pension contributions for your employees in France? I can help you ensure compliant payroll administration and meet your French social security obligations.