Our experts will guide you in your choice of domicile.
Our experts will guide you in your choice of domicile.
As an auto-entrepreneur, you are automatically affiliated to the social security system for the self-employed (SSI).URSSAF deducts social security contributions from your monthly or quarterly sales declaration.
The micro-entrepreneur 's pension system relies onURSSAF, which collects social security contributions and redistributes them to the various pension funds (Sécurité Sociale des Indépendants or Cipav).
So, each month or quarter, the payment of social contributions enables you to contribute to your basic and supplementary pensions. As you can see, the amount of social security contributions varies according to your sales.
In other words, if you don't make any sales, you don't contribute to your pension? In principle, yes. If you don't make any sales, you don't have to pay any social security contributions, so you don't have any pension rights.
As a reminder, micro-entrepreneurs are subject to the micro-social regime. Every month or every three months, they pay social security contributions. A percentage is deducted from the total amount of contributions, corresponding to basic and supplementary pensions .
Social security contribution rates vary according to the nature of your business. In fact, the rates will differ depending on whether you work in :
a business activity classified as industrial and commercial profit (BIC):
a liberal profession covered by non-commercial profits (BNC): liberal professions registered with the Caisse nationale d'assurance vieillesse (CNAV) or the Caisse interprofessionnelle de prévoyance et d'assurance vieillesse (Cipav).
To determine your pension entitlement, you need to calculate your total monthly or quarterly social security contributions.
Merchandise sales activities
The overall flat-rate contribution is equal to your monthly or quarterly sales multiplied by the social security contribution rate corresponding to your activity, i.e. 12.3% for the sale of goods.
Service activities (BIC)
The overall flat-rate contribution is equal to your monthly or quarterly sales multiplied by the rate of social security contributions corresponding to your activity, i.e. 21.2% for a service activity (BIC).
Rental of furnished residential premises
The overall flat-rate contribution is equal to your monthly or quarterly sales multiplied by the rate of social security contributions applicable to your activity, i.e. 21.2% for the rental of furnished accommodation.
Furnished tourist accommodation
The overall flat-rate contribution is equal to your monthly or quarterly sales multiplied by the social security contribution rate corresponding to your activity, i.e. 6% for rental of furnished tourist accommodation.
Other services (BNC) / Liberal professions
The overall flat-rate contribution is equal to your monthly or quarterly sales multiplied by the social security contribution rate corresponding to your activity, i.e. 23.1% for other services (BNC) / self-employed activity. This rate applies between July 1, 2024 and December 31, 2024.
The overall rate of social security contributions for self-employed self-employed professionals will change gradually over a three-year period, according to the following schedule:
Regulated liberal professions covered by Cipav
The overall flat-rate contribution is equal to your monthly or quarterly sales multiplied by the social security contribution rate corresponding to your activity, i.e. 23.2% for a regulated self-employed activity covered by Cipav. This rate has been applicable since July 1, 2024.
Here is a summary table of social security contribution rates for micro-entrepreneurs, depending on the nature of their activity:
When can a micro-entrepreneur retire? Like salaried employees, you can only retire once you have reached the legal retirement age. You should know that if you reach the legal retirement age, you can receive your pension, even if not all your quarters have been validated. However, you can only draw your full pension if you have sufficient insurance cover.
Since the pension reform, the legal retirement age has been gradually raised to 64 by 2030, instead of 62 previously (L. n° 2023-270, Apr. 14, 2023). This new rule has been in force since September 1, 2023.
Here's a summary of the legal retirement age, based on your year of birth and length of insurance (quarters):
Depending on the nature of their business, micro-entrepreneurs are affiliated to different pension funds. A distinction must therefore be made between :
To find out about your rights and the amount of your future retirement pension, it's essential to know which organization you're affiliated with. Your basic pension and your supplementary pension will come under the same pension fund.
The main pension fund to which most auto-entrepreneurs are affiliated is theRégime Général pension scheme. So, if you're a shopkeeper or craftsman, you're covered by the general scheme's pension insurance scheme. Your file will then be processed by CARSAT or CNAV.
Similarly, if you work in an unregulated liberal profession, you will automatically be affiliated to the general pension scheme in the same way as artisans and shopkeepers.
Conversely, Cipav is the body responsible for regulated liberal professions. In fact, as an auto-entrepreneur, you are affiliated to Cipav for your retirement insurance if you work in one of the following professions:
This list is not exhaustive. There are a large number of regulated liberal professions affiliated to Cipav. These professions benefit from a pension system similar to that of the general scheme, but with specific calculation methods.
Paying social security contributions enables you to validate quarters for your pension. Like salaried employees, you can validate up to 4 quarters per year.
Please note that validation of a quarter is not automatic: you must have declared a minimum sales figure. The minimum sales required to validate your pension quarters as a micro-entrepreneur depend on the nature of your activity.
A micro-entrepreneur's retirement pension is calculated on the basis of sales and the number of validated quarters. Consequently, if an auto-entrepreneur makes no sales, he or she makes no contributions.
For your basic and supplementary pensions, the calculation of pension quarters is carried out in several stages:
Determine the amount of income contributed by adding the amount of contributions paid during the year and dividing by the contribution rate of the basic pension plan for the year in question. For 2024, this rate is equal to 17.75%, i.e. the following calculation formula: Amount of contributions paid during the year / Contribution rate for the basic pension scheme for self-employed workers = Amount of income contributed.
Determine the number of quarters validated (basic pension) in a year by dividing the amount of income contributed to your basic pension scheme by the hourly SMIC applicable on January 1, 2024, multiplied by 150. The hourly SMIC multiplied by 150 is equal to 1747.50, i.e. the following calculation formula: Amount of income contributed / 1747.50 = Number of quarters (rounded down to the nearest whole number), up to a maximum of 4 quarters.
Please note that on November 1, 2024, the French minimum wage (SMIC) was raised in advance. It is now €11.88 per day, instead of €11.65.
Determine the number of points contributed (supplementary pension) by dividing the amount of income contributed to your supplementary pension by the corresponding year's point value. In 2024, the point value of the supplementary pension is equal to €19 .394, i.e. the following calculation formula: Amount of income contributed / acquisition value of the point = Number of points contributed to your supplementary pension.
As a reminder, the supplementary pension entitles you to additional pension points on top of your basic pension. It corresponds to a percentage deducted from your social security contributions, equal to 16.50% in 2024.
Example: To help you understand how your pension is calculated, here's an example with figures. A micro-entrepreneur sells merchandise and generates annual sales of €20,000 in 2024.
To calculate your basic pension :
To calculate your supplementary pension:
To validate their pension quarters, micro-entrepreneurs affiliated to Cipav must achieve annual sales in excess of the following amounts in 2023:
Please note that the minimum sales thresholds for validating your pension quarters for 2024 have not yet been published. The latest thresholds in force are those applicable in 2023.
In addition to validated quarters, you will also earn points which will be used to determine the amount of your basic retirement pension. The sum of points acquired is multiplied by the point value for the year in which you retire. In 2024, the value of the pension point is equal to €0.6399.
In addition, you contribute 20.75% of the total amount of your social security contributions towards your supplementary pension. These contributions will enable you to benefit from a supplementary pension in addition to your basic pension. Thus, 1 pension point is equal to €47.40 in contributions , and the value of the pension point is set at €2.89.
Example : You contributed €8,000 to your supplementary pension in 2024. To determine the number of points obtained, divide €8,000 by €47.40, using the following calculation formula: 8,000/47.40 = 168.77, rounded down to 168. So, if you retire in 2024, you will receive 168 x 2.89 = €485.52 in supplementary pension benefits.
As you can see, it can be difficult to determine your pension entitlement and the amount of your future pension. And with good reason: the value of the pension point changes every year, and your career can be difficult to assess: between salaried employment and self-employment, or even periods of inactivity, it's not impossible that you've contributed to several pension funds.
But how do you prepare? Here are a few tips:
Don't hesitate to run simulations to evaluate your retirement! Some websites offer simulation tools to evaluate your future retirement pension. You can also contact an advisor for more information about your retirement.
Another solution is to save every year to increase your retirement pension. Indeed, micro-entrepreneurs are advised to save regularly so as not to depend solely on their pension.
For this reason, a supplementary pension can be the ideal way to set money aside throughout your working career. This system enables you to save for a higher pension when you retire. It often takes the form of a pension savings plan (PER), which allows you to make regular payments throughout your career.
The PER consists of 2 phases:
The best thing is to anticipate! So don't forget to keep up to date with your pension entitlements, update your career record and do everything you can to anticipate the end of your professional career.
