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What are the retirement rights of micro-entrepreneurs?

Verified 04 novembre 2020 - Directorate for Legal and Administrative Information (Prime Minister)

The pension rights (basic or supplementary pension) of micro-entrepreneurs subject to the micro-social scheme depend on the amount of social contributions paid. Without declared turnover and therefore without contributions, no entitlement to an old-age pension can be granted.

The micro-entrepreneur acquires rights from the Social Security of the Self-employed (SSI) if he is a craftsman, trader or unregulated liberal profession.

He or she acquires rights from the Inter-Professional Professional Professional Fund (IACPF) if he or she is a regulated professional.

When declaring the activity of the micro-entrepreneur, the Urssaf, as CFE, which operates as a single window, makes the affiliation with the SSI or the Ciamont. There is no particular approach to take.

The same shall apply to the cancelation of the assets upon termination of the business of the Urssaf.

However, the pension fund (SSI or Ciped) is the contact point for the micro-entrepreneur with regard to the collection of pension points and the liquidation of entitlements.

The rate standard abatement applies to the actual revenue received to determine the average annual income on which you will be taxed.

It is used to calculate your average taxable income, also known as taxable profit..

  FYI : taxable income is the basis on which the number of retirement quarters you can post is determined.

This deduction is a percentage that varies depending on the type of activity.

It corresponds to deductions for expenses and professional expenses.

Flat-rate abatement per type of activity

Activity Type

Flat-rate reduction for costs and charges

Commercial activity including accommodation and catering

71%

Provision of commercial or craft services (BIC)

50%

Provision of commercial or craft services and unregulated professions

(BNC)

34%

Regulated professions

(BNC)

34%

Whether the activity of a micro-entrepreneur is the main activity or whether the micro-entrepreneur has another main activity as an employee, it has no impact. The rights are acquired according to the turnover achieved by the activity of micro-entrepreneur.

With the simplified micro-social system, compulsory social security charges are replaced by a flat-rate social security levy. This package applies only to the turnover actually received.

To validate the quarters of old-age insurance, it is necessary to have realized minimum amounts of turnover during the year of activity.

These minimum annual turnover thresholds must be respected, even if the activity has not been carried out in a full calendar year.

  Warning : the turnover taken into account shall be that after deduction of the lump-sum reduction. It is the taxable income and not the CA received.

If a micro-entrepreneur relaying BICs realizes during the year a turnover of €12,030, he can validate 4 quarters of old-age insurance.

Example :

A self-driving VTC driver, whose company has fewer than 10 employees, who reports an annual turnover of €9,000 will be able to validate 3 quarters of retirement.

Minimum turnover to be achieved in 2020 to validate old-age insurance quarters

Pension fund

Activity Type

CA for 1 quarter

CA for 2 quarters

CA for 3 quarters

CA for 4 quarters

Social security for the self-employed

Commercial activity including accommodation and catering

€4,137

€7,286

€10,426

€20,740

Provision of commercial or craft services (BIC)

€2,412

€4,239

€6,071

€12,030

Provision of commercial or craft services and unregulated professions

(BNC)

€2,880

€5,062

€7,266

€9,675

Cipher

Regulated professions

(BNC)

€2,280

€4,560

€6,840

€9,120

  FYI : in the event of a combination of an employed activity and a micro-entrepreneur activity, it is not possible to validate more than 4 quarters per year.

To make the turnover declaration with the Urssaf and pay income tax and his social contributions and contributions, the micro-entrepreneur has the choice between a monthly or quarterly return..