Calculation Methodology
Full transparency on the formulas used and their official sources.
1Pension social contributions
Pension contributions include the base pension (CNAV) and supplementary pension (Agirc-Arrco). They are calculated on different salary brackets.
Employee contribution rates (URSSAF 2025)
According to the official URSSAF simulator, here are the contribution rates:
Employee contributions
~21%
of gross salary
Employer contributions
~42%
of gross salary
Employee breakdown:
- Old-age (capped): 6,90%
- Old-age (uncapped): 0,40%
- Supplementary pension T1: 3,15%
- CEG T1: 0,86%
- Deductible CSG: 6,80%
- Non-deductible CSG: 2,40%
- CRDS: 0,50%
Employer breakdown:
- Health insurance: 7-13%
- Old-age (capped): 8,55%
- Old-age (uncapped): 2,02%
- Supplementary pension: ~8,9%
- Family: 3,45-5,25%
- Unemployment: 4,05%
- AT/MP: ~2,12%
- Other (FNAL, training): ~1,6%
Source: Official URSSAF simulator
Base pension (Social Security / CNAV)
| Contribution | Base | Employee | Employer |
|---|---|---|---|
| Old-age (capped) | Up to PMSS (€3,925) | 6,90% | 8,55% |
| Old-age (uncapped) | Total salary | 0,40% | 2,02% |
Supplementary pension (Agirc-Arrco)
| Contribution | Base | Employee | Employer |
|---|---|---|---|
| Tier 1 | 0 to 1 PMSS | 3,15% | 4,72% |
| Tier 2 | 1 to 8 PMSS | 8,64% | 12,95% |
| CEG Tier 1 | 0 to 1 PMSS | 0,86% | 1,29% |
| CEG Tier 2 | 1 to 8 PMSS | 1,08% | 1,62% |
Source: URSSAF - 2025 contribution rates and Agirc-Arrco
2Base pension calculation (general scheme)
Calculation formula
AAE (Average Annual Earnings)
Average of the 25 best salary years, capped at PMSS. In our simulation, we use the current salary as an approximation.
Rate
The full rate is 50%. For missing quarters, a 1.25% reduction per quarter applies (maximum 20 quarters, i.e., -25%).
Required quarters
For generations born after 1973: 172 quarters (43 years of contribution) for full rate.
3Supplementary pension Agirc-Arrco
Calculation formula
2025 point value
€1.4159 per point (value as of November 1, 2024).
Simplification in the simulator
We estimate the supplementary pension at approximately 25-30% of the last gross salary for a complete career, which corresponds to observed averages.
Source: Agirc-Arrco - Point value
4Capitalization projection
Compound interest formula
Where n = number of months remaining until retirement
Return rate
The default rate of 6% corresponds to the historical average performance of equity markets over the long term, adjusted for inflation. You can adjust between 2% (conservative) and 10% (optimistic).
4% Rule
To convert capital into a monthly annuity, we use the 4% rule from the Trinity Study (1998). It states that an annual withdrawal of 4% of capital allows you to maintain your wealth for about 30 years with a high probability of success.
Note: Note: Capitalization is a hypothetical simulation. Past performance does not guarantee future results. Consult a financial advisor for any investment decision.
52025 Income Tax Brackets
Tax is calculated after applying the 10% professional expenses allowance. Assumption: single person, 1 tax share.
| Bracket | Taxable income | Rate |
|---|---|---|
| 1 | 0 EUR to 11 294 EUR | 0% |
| 2 | 11 294 EUR to 28 797 EUR | 11% |
| 3 | 28 797 EUR to 82 341 EUR | 30% |
| 4 | 82 341 EUR to 177 106 EUR | 41% |
| 5 | Over 177 106 EUR | 45% |
6Constants used (2025)
| Constant | Value | Source |
|---|---|---|
| PMSS (Monthly SS Ceiling) | 3 925 EUR | URSSAF |
| PASS (Annual SS Ceiling) | 47 100 EUR | URSSAF |
| Monthly gross min. wage | 1 801,80 EUR | INSEE |
| Hourly gross min. wage | 11,88 EUR | INSEE |
| Quarters required (full rate) | 172 | Service-Public |
| Pension deductions | ~9,1% | CSG/CRDS/Casa |
| Employee contributions (exec. & non-exec.) | ~21% | URSSAF 2025 |
7Simulator limitations
This simulator uses simplifying assumptions:
- Linear career: constant salary throughout the career
- Simplified tax situation: single, 1 tax share
- Average AT/MP rate: 2.23% (varies by sector)
- Not taken into account: unemployment periods, part-time work, parental leave, international careers
- Pay-as-you-go benefits not counted: survivor's pension, minimum pension, child supplements
For an accurate estimate of your pension, check your career statement on lassuranceretraite.fr or make an appointment with a pension advisor.