Liberal Micro-Entrepreneurs Contributions Increase

Starting July 1, 2024, social contribution rates for liberal micro-entrepreneurs in liberal professions will see an increase.

This adjustment, while it may initially seem burdensome, is designed to enhance the long-term financial security of professionals by allowing them to contribute more effectively to their supplementary pension plans. The change specifically affects those classified under BNC (non-commercial profits), a category that includes a wide range of professional services such as consultants, therapists, and freelancers in various sectors.

For Cipav-affiliated individuals, the overall rate will rise from 21.2% to 23.2% as of July 1, 2024. Cipav, which primarily serves professionals in certain liberal occupations, ensures that these increased contributions translate into better retirement benefits in the future.

For those under the independent regime, the increase is more substantial and will occur in stages: from 21.1% to 23.1% on July 1, 2024; from 23.1% to 24.6% on January 1, 2025; and from 24.6% to 26.1% on January 1, 2026. This gradual increase is intended to help professionals adjust to the new rates without an abrupt financial impact.

The decision to raise these rates is part of a broader effort by the government to ensure that independent workers, who often have less secure retirement options compared to salaried employees, can build a more robust safety net for their later years.

The move has sparked mixed reactions, with some professionals concerned about the immediate financial burden, while others recognize the potential long-term benefits.

This change is outlined in Decree 2024-484, dated May 30, 2024, and published in the Official Journal on May 31.

The decree is part of the government’s ongoing reforms aimed at strengthening the social protection system for self-employed individuals, ensuring they are not left vulnerable as they approach retirement.