When you’re hiring your first employees in France, you may have some questions about the compulsory or optional nature of the various types of employee benefits. In this article, we present the various key benefits in France, and how employers fund them under the legislation.
Death & disability benefit
In the event of death or disability, your employee’s salary will continue to be paid, or their beneficiaries will receive a lump sum. The death & disability plan, which includes a death and total and irreversible loss of autonomy lump sum, must be taken out by the employer for their executive employees. For non-executives, it’s advisable to check whether the collective bargaining agreement for your sector requires the death & disability plan to be compulsory.
Supplementary health insurance
Your company is required to provide all its employees with a supplementary health insurance plan which will supplement the reimbursements from French Social Security. Supplementary health insurance is compulsory, and essential to avoid out-of-pocket expenses for medical services. As the rates charged in France can be high (especially in certain cities, and with practitioners who charge excess fees), you need to provide a health insurance plan with quality benefits that will guarantee good coverage for your employees. Got a question?
Supplementary pension plan
Your employees pay compulsory contributions into the public pension system but this system is insufficient to provide a comfortable salary on retirement. It’s therefore common practice in France for employers to provide a supplementary pension plan into which both the employer and the employee pay to build up a supplementary pension pot that can be used in retirement. The supplementary pension plan isn’t compulsory but it allows you to pay your staff additional, non-taxable salary. It’s therefore an effective way of building employee loyalty!
Unemployment insurance
In France, all employees pay contributions into the public system which manages unemployment insurance: “Pôle Emploi”. If they lose their job, all French people therefore receive unemployment benefit, the amount and duration of which vary depending on the salary they previously earned and how long they have been contributing. However, there are some professions which are not eligible for “Pôle Emploi”, such as certain company chairmen or managing directors, and they are not covered if they lose their job. In this case, it’s strongly advised (but not compulsory) to take out a specific unemployment insurance plan.
Professional assignments abroad
As an employer, you are responsible for the safety of your employees who are abroad on business, even when they’re not working! It’s therefore essential to take out an international insurance plan providing a package of essential benefits (medical expenses from the 1st euro or as a top-up to French Social Security or the “Caisse des Français de l’Etranger”, repatriation assistance, crisis management, personal liability in a private capacity, etc.).
If you have any questions about the best plan to protect your employees in France and during their business trips, the MIA Assurances teams are available to assist! All reviews are free and non-binding!