Social Contributions for Micro-Entrepreneurs: Key Information

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Verified by Directorate of Legal and Administrative Information (Prime Minister’s Office)

Micro-entrepreneurs are subject to a specific social security system. This guide outlines the applicable contributions, declaration procedures, and potential exemptions.

Calculation and Declaration of Social Contributions

Micro-entrepreneurs benefit from a simplified system for calculating and paying social contributions. These contributions are determined as a fixed percentage of revenue and cover all required social charges.

  • The calculation is based on revenue generated in the previous month or quarter.
  • Contributions must be declared and paid to Urssaf either monthly or quarterly, depending on the chosen reporting schedule.
  • Declarations are made online through the Micro-Social Regime portal.

Applicable Contribution Rates

Rates vary depending on the nature of the business activity:

  • Retail trade and accommodation services (excluding furnished rentals and tourist lodgings)
  • Furnished residential rentals
  • Furnished tourist rentals
  • Service-based activities (Industrial and Commercial Profits – BIC)
  • Liberal professions outside Cipav (Non-Commercial Profits – BNC)
  • Liberal professions under Cipav (BNC)

It is possible to estimate contribution amounts using an online simulation tool.

Revenue of Zero: Consequences

If no revenue is generated, no social contributions are due. However, micro-entrepreneurs can opt to maintain minimum contributions to preserve access to benefits such as health coverage and retirement rights.

  • This request must be submitted to Urssaf by December 31 of the preceding year or, for new businesses, within three months of registration.
  • To withdraw from this option, a written request must be sent before the end of the year.

Breakdown of Social Contributions

Social contributions deducted from revenue cover:

  • Health and maternity insurance
  • Daily allowances
  • Basic and supplementary retirement pensions
  • Disability and death insurance
  • Family allowances
  • Professional training
  • General Social Contribution (CSG) and Social Debt Repayment Contribution (CRDS)

Social Contributions for Employees

If a micro-entrepreneur employs workers, social contributions apply to wages and benefits, including:

  • Salaries and allowances
  • Replacement income (sick leave, maternity, work accidents)
  • Supplementary family benefits
  • Benefits such as employer-provided housing or transport allowances

Employers must deduct these contributions from salaries and declare them via the Nominative Social Declaration (DSN):

  • Monthly DSN: Required by the 15th of the following month for businesses with fewer than 11 employees.
  • Quarterly DSN: Optional for some businesses.

Employer Contributions

  • Family allowances
  • Health, maternity, disability, and death insurance
  • Workplace accident contributions
  • Housing fund contributions
  • Unemployment insurance
  • Supplementary retirement contributions

Employee Contributions

  • Retirement contributions
  • CSG and CRDS
  • Unemployment insurance

An online tool is available to estimate contribution costs when hiring employees.

Exemptions and Reductions in Contributions

Reductions in Contributions

Certain reductions may apply:

  • Lower employer contributions for salaries below a specific threshold
  • Exemptions on additional hours worked by employees

Contribution Exemptions

Exemptions may be granted under specific conditions:

  • Geographical incentives: Businesses located in designated economic zones may qualify for reduced contributions.
  • New business exemptions: Startups may be eligible for partial social charge exemptions under the Acreprogram.
  • Innovative companies: Young businesses engaged in research and development may receive contribution relief.

Key Terms Defined

  • Abatement: A fixed or proportional reduction applied to taxable income.
  • Assessment Base: The revenue amount used to calculate contributions.
  • Contribution: A mandatory payment that funds the social security system.
  • Exemption: A waiver from specific social contributions.
  • Nominative Social Declaration (DSN): A mandatory online report summarizing payroll and social security obligations.
  • Micro-Social Regime: A simplified social security system designed for micro-entrepreneurs.

This summary outlines essential aspects of the social contribution system for micro-entrepreneurs. For further details, Urssaf provides official guidance and assistance.