Benefits, Pensions and Compensation Calculation Rules
This domain tests arithmetic applied to precise rules: which wage is the reference, which rate applies, which floor and ceiling intervene. Every question can be solved on paper if the rule is known.
Building the pension
- Reference wage: average monthly wage of the last five years subject to contributions, elements included only if they were themselves subject to contribution, and taken within the ceiling.
- Rate: 2.5% per completed year of insurance, capped at 80% (reached at 32 years).
- Pension = reference wage × rate. Partial careers are prorated: 20 years gives 50%, 25 years gives 62.5%.
- Floor: the pension may not fall below the minimum pension, aligned on the SNMG; revalorisation is decided by decree and applies to pensions already liquidated.
Other benefits and their logic
- Survivors: 50% of the deceased's pension to the spouse, 10% per child, total capped at 100%.
- IPP (AT/MP): capital below 10%, rente from 10%, computed on the rate multiplied by the value of the point.
- Family allowances: flat monthly amounts per child, independent of salary, so never proportional.
- Daily allowances (illness, maternity) are derived from the daily wage, conventionally one thirtieth of the monthly wage.
Worked example
Three workers retire with a reference wage of 60,000, 60,000 and 18,000 DZD for 32, 20 and 20 years. First: 32 × 2.5% = 80% → 48,000. Second: 20 × 2.5% = 50% → 30,000. Third: 50% of 18,000 = 9,000, below the minimum pension, so the floor (SNMG-based) is paid instead. Adding survivors afterwards: a widow of the first worker receives 50% of 48,000 = 24,000.
Traps that cost marks
Applying 2.5% to the last month's salary instead of the reference average; forgetting the 80% cap; computing on net rather than gross; ignoring the minimum-pension floor; letting survivors' shares exceed 100%; mixing a monthly pension with an annual amount.
Key points
- Pension = reference wage (last five years, capped) × 2.5% × years, maximum 80%.
- 32 years gives the full rate; shorter careers are prorated.
- The minimum pension, aligned on the SNMG, overrides a lower computed amount.
- Survivors: 50% spouse, 10% per child, capped at 100% of the deceased's pension.
- Family allowances are flat amounts, not salary-based.
- Daily allowances use one thirtieth of the monthly wage.