Provident insurance: tax and social benefits

Provident insurance: tax and social benefits

In France there is basic compulsory health and retirement coverage, for all salaried workers or not. However, given its weakness, particularly for the latter, it is possible or even compulsory in certain cases, to add additional provident insurance. This may give rise to exemptions from social charges or tax deductions. The French legislator has essentially provided for two types of compensation: for companies which subscribe to collective provident insurance, and for self-employed workers in individual provident insurance. The contract must be taken out with a company governed by the codes of insurance, mutuality or social security.
Compare for free
3 to 5 PROFESSIONAL PROVISIONAL INSURANCE quotes
What types of guarantees does provident insurance offer

A provident contract can, according to its clauses, provide guarantees for one, several or all of the following risks: health, incapacity, invalidity, death, loss of employment and retirement.
Collective provident insurance in companies

A company is required to take out company insurance in the event of a collective agreement, or if it has executives among its employees. It can also do so unilaterally on its own initiative (with written notification given to each employee). In compensation, she can benefit from an exemption from social charges on her share of the provident contributions. This exemption cannot exceed 12% of the PASS * (6% of the PASS * and 1.5% of the employee's remuneration).
Individual insurance for unpaid workers and the Madelin law

The situation of the TNS regarding their compulsory health / pension coverage is close to destitution. The legislator therefore provided, through the Madelin law, for tax deductions on taxable professional income as compensation for contributions for the different types of Madelin contracts.

    Madelin mutual health insurance contracts (reimbursement of medical expenses, etc.) and TNS provident insurance contracts which cover work stoppages, incapacity, invalidity and death (with education and spouse pensions). The tax deduction is 3.75% of professional income, to which is added 7% of the PASS *, for a maximum total of 3% of 8 times the PASS *.
    Single and multi-support or point-based Madelin retirement contracts. In this case the tax deduction is: either a fixed price limited to 10% of the PASS *; i.e. 10% of professional income limited to 8 PASS * to which is added 15% of income between 1 and 8 PASS *.
    Madelin job loss contracts have a tax deduction: ie 1.875% of professional income limited to 8 PASS *; i.e. 2.50% of the PASS *. Remember that all those subject to BIC and BNC (excluding agricultural professions) can take advantage of the Madelin law.