French Social Security
Since the MLC came in to force 3 years ago this is quite a hot topic.
We all know that the French Administration is not a slim or straight forward system…
The “fiche de paye” can contain several hundred different contributions and for some extra fun, there is more than one entity which can be competent for social security purposes.
All this works out very quickly to be a nightmare for Managers or Owners and even for some ‘specialized’ services with regards to the ENIM, the administrative body for seafarers.
Did you know that the ENIM charges are calculated on a daily basis?
This is our ‘strong point’ and where can add value as a service provider: We will calculate the social security charges daily, based on actual daily working activities. This results generally, in substantial savings for the Owner and Crew:
Without going into too much detail, a captain which receives a net salary of 3000€ per month would be subject to social security charges (employer AND employee)ranging from approx. 1000€ to 2800€ per month, for someone with a net salary of 7000€ the range can be from approx. 2800€ – 4000€ per month.
The charges would depend upon the zone of navigation, i.e. national or international waters, on board single handed or with crew, the position onboard, etc, etc, etc,
For the above example this could sum up to several thousand resp. tens of thousands of Euros for a single employee and any multiple thereof for an entire crew.
In practice, yachts are not operating internationally (this is where the charges are extremely high) and the savings for and owner or crew would be accordingly high, but very often they pay simply far too much.
Reason is since the system is very labour intense, some services providers simply declare the highest possible constellation in order to make life easier for them or just to be on the “safe side”.
The latter is not true and the ‘easy way’ is also a very but un-necessarily expensive one.
As you can see from the above, a single person with 3000€ net could generate additional costs of 12000€ to over 30000€ per year someone with 7000€ net would generate additional costs from 30000€ to almost 50000€ per year.
18000€ – 20000€ difference in charges p.a. for a single person!!!!
Definitely worth a closer look whether the declaration can be optimized.
We provide since 1999 a tailor made service to owners, captain and crew to benefit (like the shore based workers) where the social security charges are optimized to the REAL working activity.