Roche & Cie

Social contributions of Independent workers : news for 2017

13 Oct 2016

The government has unveiled the draft finance law of the Social Security for 2017.

The Social Security Financing Bill 2017, currently before the National Assembly, provides for various measures concerning social contributions for independent workers.

A graduated reduction in the rate of sickness and maternity contributions

Currently, self-employed independents owe a contribution to social sickness and maternity scheme (R.S.I.), calculated on their total earned income and the rate is set at 6.5%.

For contributions due from 1 January 2017, self-employed with annual incomes below 70% of the annual ceiling for Social Security (Pass) would be subject to a reduced contribution rate of between 3 and 6.5%. Subject to official confirmation of the 2017 Pass, independent workers earning less than € 27,460 per year would be affected.

A reform of the exemption from applicable fees overseas

With the exception of the liberal professions, the self-employed who start their activity in overseas territories (Guadeloupe, Guyana, Martinique, Réunion, Saint Barthélemy and Saint Martin) enjoy total exemption of certain personal social security contributions for the first two years. The third year, their contributions are calculated on half of these revenues, for the portion of income below the Pass (€ 38,616 in 2016).

These benefits would be revised for non-employees who move from 1 January 2017. Thus, workers earning more than 2.5 Pass per year (presumably € 98,070 in 2017) are longer eligible. For those with incomes between 1.1 and 2.5 Pass, exemption from contributions during the first two years and the reduction from the third would apply degressively. Only non-employees with incomes below 1.1 Pass (presumably € 43,151 in 2017) could therefore continue to enjoy total exemption.

Furthermore, finding that 30% of companies ceased their activity before the end of the third year, the bill provides that the abatement applied on earnings from the third year would increase from 50% to 75%. It would be 50% after the fourth year.