Retirement Pension Calculation Method Differs for Employees and Self-Employed Individuals
Professor Manel Dougui, a university professor and expert in taxation and accounting, reminded us on Thursday, February 12, 2026, that the method of calculating retirement pensions varies depending on whether the person is an employee or self-employed.
Calculation Method for Employees
For employees, the pension is calculated based on the average gross salary of the last 10 years of work, provided that these years are regularly declared. If the employee has completed 120 quarters of contribution, equivalent to 30 years of work, they are entitled to a pension equivalent to 80% of their average gross salary over the last 10 years. "On the other hand, if the employee has not completed 30 years of work, for example with only 10 years of contribution, the pension is calculated based on the same salary base but at a reduced rate, around 40% only. The only way to increase the pension in this case is to improve the declared salary over the last 10 years, in coordination with the employer," she explains during her appearance on Express Fm.
Specific Calculation for Self-Employed Individuals
For self-employed individuals, such as independent workers who declare their own contributions, the calculation differs significantly. The pension is determined based on the average of all contributions paid throughout their professional life, and not just the last 10 years. The calculation takes into account the categories declared by the person over the years, even if they have changed over time. Manel Dougui recommends that this category increase their declared category during their years of activity to prevent a low pension in the future. She emphasizes that the concept of the last 10 years only concerns employees and does not apply to self-employed workers.
Importance of Understanding Pension Calculation
Professor Dougui concludes that understanding the method of calculating retirement pensions allows citizens to plan their career and optimize their retirement situation, whether they are employees or self-employed. She stresses the importance of anticipating and informing career management to ensure sufficient income at retirement age.
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