France's retirement age will be raised from 60 to 62 over the next eight years as part of sweeping pension reforms.
Labour minister Eric Woerth said that working longer was "inevitable", and necessary to balance the public finances.
The change is to be brought in over the next eight years.
The BBC reports the move is designed to reduce France's pension costs and bring public borrowing down. However, it is likely to be resisted by labour unions.
But Mr Woerth said it was time for France to follow the lead of other European countries in addressing its deficit.
France's budget deficit currently stands 7.5% of GDP - the EU target is 3%.
The annual pension deficit is expected to total 32 billion euros ($US39.5 billion) this year and could rise to as much as 114 billion euros by 2050 without reform.
Under current rules, both men and women in France can retire at 60, providing they have paid social security contributions for 40.5 years.
Public sector employees retire on 75% of their final salary.
