Adjustments to the pension scheme for self-employed workers

Being optional for the time being, the generalization of the pension scheme for self-employed workers is scheduled for 2025. To date, 1,292 memberships have been recorded. Self-employed workers have been granted a transitional period to facilitate their integration into the Compulsory Medical Insurance (AMO) scheme.

 In the meantime, the pension scheme for self-employed workers will undergo some readjustments to bring it into line with those for health insurance. The piece of legislation validated by the House of Councilor’s on January 02 is now before the Social Sectors Committee of the House of Representatives. The draft amends articles 2, 3 and 14 of Law No. 99.15. Contributions will thus be paid on the basis of the highest flat-rate income, or the highest contribution if the person concerned is classified in more than one category, in a sub-category or in a group of categories according to the professions and activities he or she pursues.

In the pension scheme for self-employed workers, the 10% contribution is applied to a flat-rate base pegged to the minimum wage (SMIG), which depends on the worker’s category. In any case, members can adjust their contribution base at will.

Entrusted to the National Social Security Fund (CNSS), the scheme for the self-employed will be based on a points system, which will take into account «the entire career «when calculating the pension. Each insured person will be entitled to an individual account in which contributions expressed in pension points will be recorded. Free payments will also be possible. Late payment of contributions is subject to penalties. There will be a surcharge of 5% for the first month’s delay and 0.5% for subsequent months. In the event of the death of the self-employed worker or the holder of an old-age pension, a survivor’s pension will be granted to the spouse and dependent children aged under sixteen, or twenty-one if they are still studying, or eighteen if they are in an apprenticeship program. There is no age limit for children who are totally and absolutely unable to work due to disability. The entitlement date for widows’ pensions is the first day of the month following the death of the worker or the holder of an old-age pension, on the basis of a survivors’ pension application sent to the CNSS. The pension is equal to 50% of the amount of the old-age pension to which the pensioner was entitled or to which the self-employed worker would have been entitled at the date of death.

K. M.