Provident scheme (Prévoyance Cadre) In France an employer has to insure the executive level employees to cover the following risk: death (it is what we call providency / contingency). This benefit is compulsory for executive staff (managing level called "cadre" in France) and optional for non executive level employees (unless otherwise expressed by the applicable CBA – Collective Bargaining Agreement). If this particular registration is not done and that unfortunately one employee happens to die, the company will have to pay three times the annual social security ceiling (fixed amount which changes each year) to the beneficiaries, i.e., for 2006 => (2 589 x 12) x 3 = 93.204 EUR.
The Labor contract does usually state that the employee is hired under a specific CBA. For some of the CBAs specific guarantees will have to be put in place.
The general & common provident scheme being made compulsory by law, a minimum compulsory employer part has been put in place. The minimum fixed by law is 1,50 % of ceiling A at 100% employer's charge (i.e. monthly => 2.589 x 1.50% = 38,84) covering only death. This means that if you hire an executive and that no CBA applies with specific rates, you will have no other choice than to contribute to at least that 1,50% full employer contribution. Any fund can be chosen unless as stated above the CBA provides one.
To avoid the company having troubles in case of death of an employee, we suggest this registration to be made as soon as possible once the company is opened.
Medical coverage (Mutuelle)
You should be informed that the URSSAF does not cover 100% of the expenses engaged by the employee when sick for example or for optical care. This is why employers have the opportunity to offer optional medical coverages (which are therefore absolutely not compulsory).
If the company chooses to put such a scheme in place, to avoid the company having troubles in case of important medical problems, we suggest this registration to be made as soon as possible.
For all the above (providency and mutual insurance), the employer will have to give us the split used between what is employer & employee part (except as explained for the 1,50% part). The most common splits are = 100% employer, 50/50 or 40 % employee & 60 % employer.
You are absolutely free to choose any institution of your choice unless otherwise expressed by the CBA.
Industrial medicine
All French employees need to be registered to an industrial medecine fund. The fund is chosen according to the company's location. This is not part of the quarterly social contributions (it is not stated on the monthly pay slip). The fees are paid when sending the registration form.
