Social Protection for Self-Employed Workers
Self-employed workers benefit from specific and mandatory social protection that offers almost the same types of guarantees as the general employee regime.
Self-employed workers, including merchants, artisans, and liberal professionals, benefit from specific and mandatory social protection that offers almost the same types of guarantees as the general employee regime. They are affiliated with the general social security system for the self-employed and enjoy benefits such as health, maternity, family allowances, and retirement.
This article provides a detailed overview of the social protection available for self-employed workers.
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Table of Contents
- Health and Maternity Benefits
- Complementary Health Insurance
- Disability and Death Coverage
- Paternity Leave
- Family Allowances
- Retirement Benefits
- Unemployment Insurance
1. Health and Maternity Benefits
Health Care Reimbursement
The reimbursement rates for health care expenses by Social Security for self-employed workers are identical to those of the general employee regime. This means they can receive the same proportion of reimbursement for medical services, including doctor visits, hospital stays, and prescription medications.
Daily Allowances
For artisans, merchants, and non-regulated liberal professionals, the CPAM (Primary Health Insurance Fund) pays daily allowances after one year of affiliation in case of work stoppage due to illness or accident. The amount of the daily allowance is equal to 1/730 of the average annual income.
First Year Income Calculation
During the first year of activity, the average annual income is calculated based on the known income from the start of the activity to the date of work stoppage, projected over an entire year. If the insured's income is below 10% of the average PASS (Plafond Annuel de la Sécurité Sociale) in the three years preceding the payment date, the daily allowance is zero.
Low Income Protection
The 2022 Social Security Financing Act introduced a new provision to maintain daily allowances for illness and maternity in case of resuming activity. Now, self-employed workers who have opened rights for a new professional activity but whose daily allowances are zero will retain their daily allowance rights based on their previous situation.
Waiting Period
The allowance is paid from the 4th day in case of illness, accident, or hospitalization.
Allowance Payment Duration
Daily allowances can be paid for:
- 3 years for work stoppages prescribed for a long-term illness (ALD) or long-term care.
- 360 days over a 3-year period for other work stoppages (illness, accident).
Regulated Liberal Professionals
Since July 1, 2021, regulated liberal professionals can receive daily allowances with a 3-day waiting period, for up to 90 days.
Maternity Allowances
Women entrepreneurs or collaborating spouses can benefit from a fixed maternity rest allowance to partially compensate for the reduction in their activity. This allowance equals the monthly social security ceiling (€3,666 in 2023), paid in two installments at the start of maternity leave and at the end of the mandatory 8-week cessation period.
Conditions for Collaborating Spouses
Collaborating spouses must cease their activity for at least 8 weeks, including 6 weeks after childbirth, and be replaced by a salaried person to qualify for the maternity rest allowance.
Maternity Allowance Calculation
The maternity allowance amount is calculated based on the insured's income and cannot exceed 1/730 of the annual social security ceiling in effect at the date of the first payment. For low-income individuals, the allowance is reduced to 10% if their income is below €3,666 in 2023.
2. Complementary Health Insurance
Self-employed workers with very low incomes have access to complementary health insurance. This aid helps pay for health expenses if the household's resources are modest. Depending on the resources, it can be free or cost less than one euro per day per person.
Eligibility
Eligibility for complementary health insurance depends on the household's financial situation. An online simulator can be used to evaluate eligibility.
3. Disability and Death Coverage
Unlike employees, self-employed workers do not have mandatory provident insurance. They are only covered for disability and death. It is recommended that self-employed workers subscribe to a "Madelin law" contract to benefit from better coverage.
Disability and Death
The disability and death coverage for merchants, artisans, and non-regulated liberal professionals is managed by the general social security system, with specific rules regarding minimum affiliation duration and benefit calculation.
Disability Coverage
- Total incapacity: pension equals 50% of the average annual income over the last 10 years.
- Partial incapacity: pension equals 30% of the average annual income over the last 10 years.
Death Coverage
In case of the insured's death, the beneficiaries can receive a lump sum payment.
Regulated Liberal Professionals' Coverage
The coverage for regulated liberal professionals is not uniform; each professional association has specific regulations.
4. Paternity Leave
Self-employed individuals or collaborating spouses can benefit from paternity leave upon the birth or adoption of a child. The daily allowance in 2023 is €60.26 and can be paid for up to 25 consecutive days (single birth) or 32 consecutive days (multiple births).
Leave Breakdown
Paternity leave is divided into two periods:
- The first period is a mandatory 7-day leave (3 days of birth leave and 4 days of paternity leave), starting on the day of the child's birth.
- The second period consists of 18 days (single birth) or 25 days (multiple births) optional leave, which can be split into three parts, with the shortest being at least 5 days. It must begin within 6 months of the child's birth.
Low Income Allowance
If the entrepreneur's annual income is below €4,113.60, the paternity leave allowance is reduced to 10% of the standard amount.
5. Family Allowances
Self-employed workers have the same rights as employees regarding family allowances, which are paid by the Family Allowance Fund (Caf). These include child benefits, education allowances, and other family-related support.
6. Retirement Benefits
The basic retirement system for merchants, artisans, and liberal professionals is aligned with that of employees. The retirement pension is calculated based on the average annual income, the retirement rate, and the total insurance period.
Basic Pension Calculation
- Formula: Average Annual Income × Rate × (Number of Quarters / Reference Duration)
- Eligibility: Cessation of all professional activities
Complementary Pension
Self-employed workers benefit from a complementary pension scheme equivalent to that of non-managerial employees, calculated on a points system.
Specific Professional Retirement Schemes
Certain liberal professionals have their retirement schemes managed by professional associations, with different regulations for each.
7. Unemployment Insurance
Self-employed workers can receive an Unemployment Insurance Allowance (ATI) of €800 per month for six months if their business ceases due to liquidation or judicial recovery. The eligibility conditions include continuous activity for 2 years, proof of cessation of activity, and a minimum annual income of €10,000.
Eligibility Conditions
- Continuous activity for 2 years
- Proof of cessation (liquidation or judicial recovery)
- Minimum annual income of €10,000 in one of the last two years
- Active job search
- Household income below the RSA (Revenu de Solidarité Active) threshold
Self-employed workers enjoy social protection similar to that of employees, but with some differences in details and eligibility conditions. Understanding these protections and policies can help self-employed workers navigate their entrepreneurial journey with greater confidence and security. This article aims to provide comprehensive information on social protection for self-employed workers.
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