To start with, it must be famous that, though they’re usually confused, pre-reform and early retirement are various things.
Whereas early retirement permits entry to an old-age pension earlier than the authorized retirement age (albeit with some reductions supplied for by regulation), early retirement permits the employee, by way of a written settlement with the employer, to scale back your hours and/or workloadand even cease working, however proceed to obtain remuneration.
This written settlement, signed by each events, should include the beginning date of the pre-retirement, the quantity of the quantity you’ll obtain month-to-month and the way your working time can be organized for those who work fewer hours.
Pre retirement: 11 questions and solutions
Who’s the pre-reform accessible to?
This scheme is offered for employees aged 55 and over.
Does it apply to civil servants?
Sure, civil servants are additionally lined in accordance with the phrases of the Normal Legislation of Labor in Public Capabilities (Legislation No. 35/2014).
What sorts of pre-retirement exist?
There are two sorts of pre-reform – discount of working hours Or the complete suspension of labor.
The 2 modalities have totally different penalties when it comes to Social Safety, however each enable the employee to obtain a month-to-month remuneration also referred to as pre-retirement.
The method to acquire this standing is easy: the employer should ship the pre-retirement settlement signed with the employee to Social Safety, along with the remuneration assertion for the month during which the settlement comes into pressure.
How is the settlement made with the employer?
The settlement have to be written and signed by the worker and the employer, and should include:
- The identification, signature, domicile or headquarters of the worker and the employer;
- The beginning date of the pre-retirement scenario;
- The month-to-month worth of the pre-retirement remuneration;
- The group of working time if the settlement is to scale back the supply of labor.
How a lot cash will the employee obtain?
The quantity to be acquired should correspond to an quantity between 25% of the final wage earned, and the full worth of that very same wage.
If, in the course of the pre-retirement interval, there are wage will increase (together with the adjustment based mostly solely on the inflation price) to which you’d have been entitled, had you been working full-time, the pre-retirement quantity can be up to date in the identical proportion, until in any other case stipulated within the settlement signed between the events.
What are the implications when it comes to rights in Social Safety?
All of it will depend on the modality outlined within the settlement.
If the settlement contemplates solely a discount in working hours, the employee’s rights are maintained of their entirety.
If the employee stops working, he not has entry to illness, unemployment and parenting advantages.
How are Social Safety contributions processed?
The employee and the corporate proceed to must pay contributory charges, that are based mostly on the remuneration that the employee earned earlier than the pre-retirement and never the quantity he’ll obtain throughout that interval.
However right here, too, there are variations in line with the pre-retirement regime. In conditions the place the employee retains all rights, the speed utilized earlier than the settlement is maintained. In case he loses rights, the contribution price is diminished.
The charges to be utilized are due to this fact the next:
|Suspension of labor||18.3%||8.6%||26.9%|
|Discount of working hours||Price utilized previous to settlement||The levy utilized to it previous to the settlement is maintained.||complete contributory price|
The employee will have the ability to affirm that the Social Safety contributions are being made by consulting his private web page within the Direct Social Safety.
What if the employer doesn’t pay the agreed pre-retirement quantity?
If the employer doesn’t pay the agreed quantity, and if the shortage of cost lasts for greater than 30 days, the employee has the fitting to renew his full-time exercise, with out dropping seniority, or to terminate the contract, with the fitting the compensation.
The compensation due corresponds to the worth of your entire pre-retirement remuneration that may be due (with out updates) as much as the authorized retirement age.
Is pre-retirement appropriate with the train of different professions?
Sure. In the course of the pre-retirement interval, the worker can perform one other parallel and remunerated exercise.
The laws states that the regime involves an finish when the employee reaches the authorized age for entry to the old-age pension or when he requests retirement attributable to incapacity.
As well as, pre-retirement ends with the return of the employee to the traditional work scenario, or with the termination of the employment contract.
Article initially revealed in July 2021. Final up to date in February 2023.