Enhanced Senior Pension Offering by Latest CDI, Initiated in September
On a Wednesday in May, the Labor Ministry unveiled a bill transposing agreements to boost senior employment, negotiated with social partners in November. Pivotal to this initiative is the Experience Valorization Contract (CVE), commonly known as the CDI senior.
© Illustration our site / Freepik As a journalist in our Employment section, covering social law, careers, and worker remuneration, I've been keeping a close eye on this. On May 7th, Minister of Labor Astrid Panosyan-Bouvet presented this bill in the Council of Ministers, stressing the need to tackle the waste of talents due to senior exclusion from the workforce. By June 5th, the bill will be examined in the Senate, followed by the National Assembly shortly after. According to the Minister's cabinet, if the timeline holds, all measures outlined in the text will take effect as early as September 2025.
Enter the CVE – a five-year experiment, initially referred to as the CDI senior. Eligible candidates will be job seekers aged 60+ (or 57 in specific industries) who've resumed their job search and haven't worked for the company in the previous six months.
An advantageous move for employers and employees alike
The CVE offers several benefits, particularly job security for experienced job seekers who statistically remain unemployed twice as long as their younger counterparts. Employers, meanwhile, benefit from terminating the employment contract once the employee reaches retirement age. No more delicate age-related questions or concerns about remaining quarters; employees will simply provide an official document detailing their full retirement date. To sweeten the deal, the government is exempting employers from contributing to retirement benefits for three years – a cost-saving measure aimed at encouraging participation.
In essence, the CVE serves as a win-win situation, tapping into the wealth of experience accumulated throughout an individual's career while addressing concerns related to employment longevity and retraining. Look out for further updates on this transformative measure as it moves through the Senate and National Assembly.
The Experience Valorization Contract (CVE), a five-year experiment aimed at boosting senior employment, offers advantages for both employers and employees. Elderly job seekers secure job stability, given their slower employment rate, while employers can terminate contracts once the employee reaches retirement age, eliminating age-related concerns and being exempted from contributing to retirement benefits for three years, thanks to finance support from the government.
