When setting up operations in France, international employers must be aware that many employee health benefits are not optional (as they are in the UK, for example), but mandatory and highly regulated.
In this article, we will explain the primary health benefits available to French employees. Note that although many are indeed mandatory, most optional benefits also tend to be expected. As such, providing these will help the company to remain competitive.
Mutuelle health insurance
The French state combines paid public healthcare with mandatory ‘top up’ contributions from employers. This is known as mutuelle health insurance, which must be provided to all employees. Employers are legally required to pay at least 50% of the premium, with the rest covered by the employee via payroll deduction.
It is common for French employers to pay more than their 50% obligation. Some choose to offer a fully-paid mutuelle as part of an enhanced benefits package, including extended cover for partners and family members.
Sick pay
Income protection, together with ongoing maintenance of salary payments while on sick leave, are mandatory in French companies. This can come as a surprise to UK-based business owners setting up in France, since in the UK, paid sickness benefits (beyond Statutory Sick Pay entitlement) are optional.
French employees on sick leave are entitled to receive daily allowances (Indemnités Journalières de Sécurité Sociale, or IJSS), which is generally equivalent to 50% of their basic daily wage. The IJSS are paid every 14 days, after a waiting period of three days.
French companies must also guarantee their employees a complementary income so their salary can be maintained during sick leave.
For employees with 1-5 years’ of service, the complementary income amounts to 90% for 30 days, followed by 66.6% for 30 days (as long as certain eligibility criteria is met). However, it is vital to check the company’s convention collective before proceeding, as some will provide for more favourable conditions.
Prévoyance
Prévoyance insurance provides financial cover for sickness, partial and total disability, and death. Again, note that this type of insurance is an optional benefit in many countries, including the UK.
Technically, prévoyance is partially optional in France, as only executive employees (cadres) must be offered death cover as a mandatory benefit. As with mutuelle insurance, the cost is split between the employer and employee, though as a minimum requirement the employer’s contribution must total at least 1.5% of the employee’s gross salary.
As with sickness benefits, it is important to check the company’s convention collective as this may state that prévoyance is compulsory for all employees (often, the agreement will also regulate the minimum level of cover). Yet everybody can benefit from compulsory prévoyance cover, including the employer, as it offers ‘top-up’ reimbursements for the mandatory salary maintenance payments made while an employee is on sick leave as mentioned above.
Can we answer your questions about mandatory health benefits in France?
Our qualified team will help to ensure your French company meets its legal obligations by providing clear, extensive and bespoke HR support. We offer a free initial consultation, as well as free regular training workshops on various French employment topics.Please don’t hesitate to contact us for more information.