Micro-Entrepreneur Social Security Contributions
3rd June 2024
Micro-entrepreneurs running a business as a profession libérale face an increase in their social security contributions next month.
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Micro-Entrepreneur Social Security Contributions
3rd June 2024
Micro-entrepreneurs running a business as a profession libérale face an increase in their social security contributions next month.
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In the main, they are business owners in the ‘intellectual’ professions, such as architects, doctors, journalists, consultants, IT professionals, accountants and lawyers. Around 600,000 people are affected by the change.
The increase is being introduced to improve pension rights. It follows a decision by the Supreme Administrative Court, the Conseil d'Etat, earlier this year, which annulled the contribution rate of those concerned on the grounds that it did not allow them to acquire supplementary pension rights.
Micro-entrepreneurs pay a fixed rate of social security contributions on their turnover (not their profits).
The decree, published at the end of last month, provides for increased contribution rates from 1 July 2024, depending on whether the micro-entrepreneur (in the category of BNC income) falls under 'Cipav' or the general regime for social security cover.
CIPAV Professions
For self-employed persons exercising a liberal profession affiliated to Cipav (several different professions) the overall rate increases from 21.20% to 23.20%, an increase of 2 points.
The distribution of the contribution amounts allocated to each social "risk" (retirement, death, maternity, illness, etc.), has also been modified.
Liberal Professions in the Régime Général
For those affiliated to the general regime, there will be an increase of 5 points over 3 years, as follows.
- From 1 July to 31 December 2024, the overall rate increased from 21.1% to 23.1%, (+2 points);
- From 1 January to 31 December 2025, the overall rate will increase from 23.1% to 24.6%, (+1.5 points);
- As of 1 January 2026, the overall rate will increase from 24.6% to 26.1% (+1.5 points).
Self-employed persons carrying out an activity falling under the BIC (Industrial and Commercial Profits) are not affected by these changes.