Working should mean a better pension: House approves cap on credited non-working periods

“Today, periods spent working and periods not worked count equally towards pension accrual. We are finally putting an end to that unfairness,” says Pensions Minister Jan Jambon.

The unlimited crediting of non-working periods has led to absurd situations in which employees who worked for many years on relatively low wages can end up with roughly the same pension—or even a lower one—than someone who worked only briefly at a higher salary before spending decades unemployed.

“People who have worked throughout their careers deserve a better pension than those who have spent exceptionally long periods outside the labour market,” says a satisfied Jan Jambon.

A cap on non-working periods

For new pensions starting on 1 July 2027, the share of credited periods for long-term unemployment, the unemployment-with-company-supplement scheme (SWT), and non-working days under so-called end-of-career arrangements will be capped.

For people born between 1961 and 1964, credited periods will be limited to 40% of the career. For those born in 1968 or later, the cap will be 20%.

Fair and socially just

Workers will still be able to accumulate the equivalent of 9 to 18 years of these credited periods over the course of their careers. Only periods exceeding that limit will no longer count towards the pension calculation.

The reform does not affect credited periods for illness, temporary unemployment or various forms of care leave. The minimum pension also remains fully protected. The measure simply puts an end to exceptionally long periods of pension accrual based on prolonged unemployment.

“Thanks to this law, we will prevent absurd situations like the well-known case of two French-speaking friends in 2017. Virginie, who had worked for 40 years without ever being unemployed, discovered that she would receive a pension €220 lower than her friend Caroline, who had spent no fewer than 33 years unemployed. This law finally puts an end to such a fundamentally unfair situation,” the Deputy Prime Minister said.