Portage salarial : French umbrella company
Version française
Portage salarial is a special form of employment involving a three-way relationship between a self-employed worker, his or her client and a « portage salarial » company. This form of employment enables self-employed to carry out their activities independently, but under the protective status of employees.
While retaining their autonomy and freedom, employees benefit from the advantages of french employment, such as general pension contributions and the right to unemployment benefit in the event of inactivity. As a « portage salarial » employee, you don’t need to set up a legal structure. Instead, they delegate all administrative and accounting management of their business to their « portage salarial » company.
What is "portage salarial» ?
Portage salarial is a three-way contractual relationship between a contractor, a « portage salarial » company (EPS) and a client company. In concrete terms, contractor signs an employment contract with a « portage salarial » company. He thus becomes the company’s employee. When a contractor find his/her client, he negotiates the terms of the service (duration, tasks, rate, etc.) directly with the client. The portaga salarial company and the client company then sign a service contract that sets out the negotiated terms.
The portage salarial company takes care of the administrative and accounting side of the business, in return for a management fee.
How does portage salarial work ?
There are two distinct relationships or contracts involved in portage salarial:
-
Between the « portage salarial » company and the « porté » employee: They are bound by a fixed-term or a permanent employment contract. The contractor is considered an employee of the company.
-
Between the portage salarial company and the client company: They are bound by a service contract. This defines the terms and conditions of the services to be provided, and the fee.
-
Between the employee and the client company: The employee carries out assignments for the client company as agreed in the service contract.
Portage salarial companies handle all administrative management related to their contractors’ assignments, in exchange for management fee. The employee contributes to the general scheme and can benefit from the advantages and protection offered by french employment.
Since 2015, the legal framework has been strengthened. The signature of the portage salarial collective agreement in 2017 ensures a more stable and secure environment.
La société de portage : " French umbrella company"
What is a french umbrella company ?
A french umbrella company is not only a service provider for companies, but also the contractor’s employee. In order to help contractors develop their business, the company provides tailor-made support and makes its resources and structure available to them. Contractors remain totally free to choose their assignments and clients.
In return for carrying out administrative, legal and accounting tasks on behalf of its employees, the portage salarial company charges management fees.
Obligations of portage salarial company
Portage salarial companies must comply with a number of rules:
- They have exclusive rights to the practice of « portage salarial ».
- They invoice the client on the basis of the terms agreed between them and the contractor
- They pay the contractor a salary, after deducting the various social security charges and their own expenses.
- On behalf of the freelancer, they must take out professional liability insurance.
- At least once a month, they create and make available to the employee an activity account and a payslip.
Failure to comply with these legal obligations may result in sanctions.
The different types of employment contract
Portage salarial companies are governed by the French Labor Code and the Collective Agreement on Freelance Administration.
Permanent and fixed-term contracts are the two most common types of employment contract in portage salarial. They differ mainly in terms of duration and termination terms.
CDD (fixed term contract) : suitable for short assignments
- Renewable twice
- Total limit of 18 months
- End of contract via scheduled end date, early termination or resignation
CDI (permanent contract) : suitable for regular assignments, bank loans or property rental projects
- Open-ended contract
- Termination by end of trial period, mutual termination or resignation
9 advantages of working with with STA Portage
1. Save time
The main advantage of portage salarial is that you can concentrate 100% on your assignments. You delegate all administrative, legal and accounting tasks to your future employer. All you have to do is declare the number of days you work.
2. Pension and unemployment contributions
Since you are legally an employee, you therefore contribute to the same pension and unemployment funds as any other employee. This means you can draw unemployment benefits between assignments, and build up a decent pension – a problem for many freelancers today. STA Portage also offers a PERCO savings.
3. Healthcare insurance
When you join STA Portage, you automatically benefit from a high-performance mutual insurance plan at a negotiated rate. You can choose the plan that suits you best, depending on your personal situation.
4. Access to training
STA Portage has forged two partnerships with M2I Formation, France’s leading provider of IT, digital and management training, and BM Formation, which offers customized cross-disciplinary training in IT, office automation, communication, management and languages.
5. A network of entrepreneurs
Joining STA Portage means joining a family of over 1,000 entrepreneurs who have opted for independence and peace of mind.
6. Obtain a mortgage or lease
As we all know, banks, landlords and freelancers don’t mix. The absence of a permanent contract and pay slips is often a huge obstacle to obtaining a loan or renting an apartment.
With STA Portage, you’re entitled not only to a permanent contract and pay slips, but also to a smoothing of your salary over the year to show your banker regular income and stability.
7. Access to CE (travel, leisure, culture)
STA Portage freelance consultants have access to the works council and a wide range of discounts:
- Vouchers (Amazon, Fnac Darty, Decathlon, Ikea…)
- Leisure (Bowling, Museum, Zoo…)
- Cinema
- Shows & events
- Good deals (perfumes, gyms…)
- Travel
8. Lunch vouchers, gift vouchers, culture and CESU
Cheques emploi service universels (CESU): These are intended for people who need personal assistance or home services, such as gardening or childcare, and enable the individual employer to pay for home services simply and securely. Expenses incurred for home help are eligible for a general tax credit for all individual employers, whether taxable or not.
Gift and culture vouchers: The employee can claim up to €193 in gift vouchers for a list of events drawn up by URSSAF. It is also possible to claim up to €193 excluding URSSAF events.
Culture vouchers are capped at €1,000 per month. They only give access to goods of a cultural nature (museum visits, concerts, etc.). Gift and culture vouchers are tax-exempt up to €193/year.
9. Company savings and retirement plans (PEE and PERCO)
Two employee savings plans are available at STA Portage: the Plan Epargne Entreprise (PEE) and the Plan d’Epargne pour la Retraite Collectif (PERCO).
Company Savings Plan (PEE)
This plan is designed for employees who wish to build up a portfolio of securities. The PEE works like a second bank account in which the employee can invest. The employee makes an initial payment into the PEE, and the portage salarial company then transfers the desired sums to the PEE. Payments are capped at 25% of the employee’s gross annual income, and may not exceed €3,290.88.
Group retirement savings plan (PERCO)
The PERCO is available to employees wishing to build up funds for retirement. As with the PEE, the first payment is voluntary, and the freelance administration company then pays in the amounts desired. Payments into the PERCO may not exceed €6581.76.
The amounts paid into both the PEE and the PERCO are matched up to 300% (the legal maximum) by the company. It may not exceed three times the initial amount paid in by the employee. It should be noted that in portage salarial, the employer’s contribution is deducted directly from the employee’s turnover. The PEE is blocked for at least 5 years, and the PERCO until retirement. There are, however, exceptional unlocking conditions for both the PEE and the PERCO.
The cost of a portage salarial company
Of course, portage salarial company has its costs, which can be divided into 3 categories:
- Employee/employer contributions: All employees pay these, without exception. They are used to finance your unemployment, pension and health insurance…
- Management fees: this is what the portagz company deducts from your invoice amount to pay itself. It is generally a percentage of sales.
- Fiscal and parafiscal taxes: These are compulsory taxes that are added to the amounts deducted from your invoice amount. Some structures include them in their management fees. Example: CVAE, medical examination…
Over and above these costs, it is therefore more interesting to look at the reversion rate, i.e. the percentage you have left on your sales. It is therefore legitimate to ask how much salary you can expect to earn as a freelancer… The average reversion rate in the sector is around 50%.
Example : On a turnover of €10,000, with a reversion rate of 50%, I get back €5,000; with a rate of 45%, I get back €4,500…
Minimum billing for contractors
A minimum wage is set by the « convention du portage salarial », to which all serious « portage salarial » companies must be affiliated. This amount must enable the freelance consultant to earn a gross salary corresponding to 75% of the social security ceiling for a full-time equivalent.
In terms of day rate, STA Portage recommends a minimum of €250 daily rate.
For more information, contact our International Business Manager at oabbe@freelance.com
