Many mandatory health benefits offered by French employers are merely optional in the UK. To avoid falling foul of the law, British business owners must be aware of these differences if they want to successfully establish a presence in France.
Here we have summarised the main health benefits available to employees in France.
Mutuelle health insurance
Although health benefits already form part of the French social security system, not all medical costs are funded by the state. Mutuelle health insurance therefore provides ‘top-up’ cover for full reimbursement.
Mutuelle health insurance is a mandatory requirement for all employees in France. Employers must pay at least 50% of the cost by law, although some companies choose to offer an enhanced mutuelle as part of their benefits package, along with extended cover for partners and family members.
Sick pay
Whereas in the UK payment beyond Statutory Sick Pay is optional, income protection and the ongoing maintenance of salary payments are both mandatory in France.
As such, French employees are entitled to receive daily allowances (Indemnités Journalières de Sécurité Sociale, or IJSS) while on sick leave, which is usually equivalent to 50% of their basic daily wage.
The IJSS are paid every 14 days after a waiting period of three days. There is a maximum duration for payment following which, if they are still absent, the employee will trigger longue maladie, or long-term illness.
In addition to the IJSS, companies must guarantee their employees a complementary income to maintain their salary during sick leave.
As long as they meet certain conditions, for employees with 1-5 years’ of service the complementary income is 90% for 30 days, followed by 66.6% for 30 days. In some companies, the Convention Collective will provide for more favourable conditions.
Prévoyance insurance
An optional benefit in the UK, prévoyance insurance offers cover for sickness, partial and total disability, and death.
Cadres, or executive employees, must be offered death cover as a mandatory benefit, with the cost split between the employer and employee (as with mutuelle cover). Employers must contribute at least 1.5% of the employee’s gross salary as a minimum requirement.
Although prévoyance is an optional benefit in theory, it can be made compulsory for all employees if stated as such in the company’s Convention Collective. However, in essence both employee and employer will benefit from prévoyance, as the insurance offers ‘top-up’ reimbursements for compulsory sick leave as directed by the CPAM.
(For example, a cadre would need to be paid their full salary for three months if they have more than a year’s service. The CPAM covers 50% of the cost, and the employer may receive the additional salary maintenance payment under prévoyance, if the appropriate cover is in place).
Can we answer your questions about mandatory health benefits in France?
Our qualified, bilingual team is fully conversant with employment legislation in both France and the UK. We would welcome the opportunity to discuss any queries or concerns as part of a free initial consultation.
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