RemotePad Logo

What is an Employer of Record

How to hire globally with an EOR

What is a Global PEO

An alternative to EOR

What is a PEO

Hire locally with a PEO

Our Methodology

Why you can trust our guides

Hire Globally

Find international talents

Outsource Recruitment

How to outsource recruitment

Work Visas

How to get a work visa

Digital Nomad Visas

Get a digital nomad visa

Best Employer of Record (EOR)

Hire globally with the best EOR companies

Best Contractor Management

Hire and pay contractors and freelancers

Best Global PEO

Discover the best international co-employers

Best PEO Companies

Save on payroll and HR costs

Best Background Check Companies

Screen employees before hire

Best Global Payroll Providers

Outsource international payroll

Best Relocation Services

Relocate employees internationally

International Company Registration

Get help to incorporate overseas

All Reviews

Compare all providers

1. Horizons

Best Global EOR

2. Remote

Best EOR for Compliance

3. Deel

Best EOR Platform

4. Papaya Global

Best EOR for Payments

All EOR Reviews

Compare all providers

Where do you need a service provider?

All Countries

Explore our detailed guides for professional advice on international growth, recruitment, compensations strategies, and a curated list of top service providers.

Understanding the Concept of Portage Salarial in France

Portage Salarial in France is an employment arrangement that provides the best of both worlds for freelancers and contractors. It grants them access to social protection and employee benefits without sacrificing their autonomy.

Key Takeaways

  • Portage salarial is a French employment arrangement offering freelancers the benefits of an employee while maintaining their independence.
  • It involves a tripartite relationship between freelancer, client company, and umbrella company to manage taxes and payments.
  • Freelancers benefit from social protections, security & freedom from admin tasks. Companies gain access to specialized skills temporarily with cost savings & support.

Freelancing has never been more popular, offering contractors independence and the freedom to choose their projects. However, striking the perfect balance between enjoying employee benefits and maintaining independence can be challenging.

This blog post’ll explore the world of portage salarial (called in English Wage Portage), its process, benefits for freelancers and client companies, eligible professions, costs, and much more. By the end, you’ll understand this innovative employment arrangement and how it could revolutionize your freelancing career.

Understanding Portage Salarial

Portage salarial is advantageous for various professionals, such as:

  • Expert consultants
  • Retirees
  • Executives transitioning to new roles
  • Young graduates

Portage salarial establishes a legal employment relationship that allows freelancers to access the same social protection and benefits available to salaried workers. 

At the heart of portage salarial is a tripartite contractual arrangement that involves the freelancer, client company, and wage portage company, also known as an umbrella company. The umbrella company employs the freelancer, who then provides services to client companies, allowing them to work independently without setting up their own business. 

The Portage Salarial Process

In the portage salarial process, the responsibilities of the freelancer, client company, and umbrella company are as follows:

  • The freelancer provides their services to the client company.
  • The client company pays the umbrella company for the freelancer’s services.
  • The umbrella company manages administrative tasks and payments related to fixed-term contracts.

This arrangement allows the freelancer to focus on providing their services to the client company while the umbrella company takes care of the administrative side of the business.

Let’s delve into the three critical steps in the portage salarial process: forming the commercial contract, finalizing the employment agreement, and overseeing invoicing and payments.

Establishing the Commercial Contract

The first step in the portage salarial process is establishing a commercial contract between the freelancer and the client company. This contract outlines the terms of their working relationship, specifying the services the freelancer will provide to the client company and the agreed-upon payment. The commercial contract ensures a smooth and transparent working relationship between the two parties.

In a portage salarial arrangement, the freelancer enjoys a significant degree of autonomy, with the liberty to organize their work hours and leave. This gives them the freedom and flexibility to work efficiently and manage their time effectively.

Signing the Employment Agreement

After establishing a commercial contract between the freelancer and the client company, the freelancer signs an employment agreement with the umbrella company. This employment agreement delineates the umbrella company’s responsibilities in handling the freelancer’s social contributions and income tax payments.

The notice period for terminating a portage salarial arrangement depends on the type of contract. A mutual agreement between the employee and employer is essential for ongoing contracts. This agreement requires 45 days of notice for termination. One day of notice is needed per week of work for fixed-term contracts.

The employment contract has a duration of three years. At the end of this period, the relationship between the worker and the client company ends.

Managing Invoicing and Payments

The umbrella company is essential in the portage salarial process by overseeing invoicing and payments. They are responsible for issuing invoices to the client company and overseeing payments to the freelancer.

In addition to managing invoicing and payments, the umbrella company also ensures that all mandatory social security contributions and income tax payments are made on behalf of the freelancer. 

These services relieve freelancers of handling time-consuming administrative tasks and allow them to focus on providing their services.

Advantages for Freelancers and Companies

Portage salarial offers numerous advantages for both freelancers and client companies. By providing social security coverage, unemployment benefits for the freelancer, and temporary access to specialized skills for client companies, portage salarial is often a win-win solution for all parties involved.

Benefits for Freelancers

For freelancers, portage salarial presents several significant benefits:

  • Complete social protection, including health protection, unemployment, and pension rights
  • The same level of security and peace of mind as salaried employees
  • Independence

Another advantage for freelancers is the freedom from administrative tasks, as the umbrella company takes care of:

  • Invoicing
  • Payroll
  • Tax filing
  • Other time-consuming responsibilities

This enables freelancers to focus on their work and dedicate more time to providing quality services to their clients.

Benefits for Client Companies

Client companies also stand to gain from portage salarial arrangements. By utilizing portage salarial, client companies can:

  • Access specialized skills temporarily without the long-term commitment of hiring a full-time employee
  • Benefit from flexibility and cost savings

Additionally, the umbrella company handles all invoicing and can act as an intermediary in the event of any issues with the freelancer. This added support layer ensures a smooth and seamless working relationship between the client company and the freelancer.

Eligible Professions and Exclusions

Portage salarial is suitable for various professions, including IT, marketing, and graphic design. These roles typically involve intellectual services, making them a perfect fit for the portage salarial arrangement.

However, not all professions are eligible for portage salarial. Manual labor, medical, or personal service positions are inappropriate for this employment arrangement. Additionally, regulated liberal professions (such as lawyers, doctors, and chartered accountants) and commercial activities are excluded from portage salarial.

Costs and Fees Associated with Portage Salarial

While portage salarial offers numerous benefits, there are associated costs and fees to consider. Portage salarial companies typically charge a management fee ranging from 7-10% of monthly invoices. This fee covers the umbrella company’s administrative tasks and insurance coverage.

It’s important to note that the cost of portage salarial is significantly lower than that of a service company, which can charge between 20-60%. This makes portage salarial an attractive and cost-effective option for freelancers and client companies.

Choosing the Right Portage Salarial Company

Choosing an appropriate portage salarial company is fundamental to guaranteeing a secure and advantageous arrangement.

When choosing a French umbrella company, consider factors such as reputation, services offered, and guarantees. It’s estimated that between 100 and 600 umbrella companies in France offer a wide range of services and specialization, such as professional training, real estate, and recruitment.

By carefully evaluating your options and selecting a reputable portage salarial company that aligns with your needs, you can enjoy a smooth and successful freelancing experience.

Working Internationally with Portage Salarial

Beyond its advantages in France, portage salarial further empowers freelancers to undertake international projects. While the overall process remains similar, there may be variations in payment methods and deadlines depending on the country.

This global reach of portage salarial opens up new opportunities for freelancers, allowing them to expand their client base and work on diverse projects across the globe. It’s another reason portage salarial is an attractive option for professionals seeking a flexible and secure employment arrangement.

Health Insurance and Unemployment Benefits

Health insurance, unemployment insurance, and unemployment benefits form essential elements of the portage salarial arrangement, equipping freelancers with a safety net akin to that of salaried employees. Basic coverage is provided, with optional top-up insurance available for additional costs.

Top-up health insurance, or “mutuelle” in French, offers reimbursement for expenses not covered by social insurance. This additional coverage can help freelancers manage their healthcare costs more effectively, ensuring they are protected in case of illness or injury.

Summary

In conclusion, portage salarial is an innovative employment arrangement offering numerous benefits to freelancers and client companies. By balancing independence and employee benefits, portage salarial allows freelancers to enjoy social protection, access to expert skills, and freedom from administrative tasks. At the same time, client companies can tap into specialized skills without the long-term commitment of hiring a full-time employee.

As the world of work continues to evolve, portage salarial is poised to become an increasingly popular option for professionals seeking a flexible and secure employment arrangement. So, why not explore the possibilities of portage salarial and revolutionize your freelancing career today?

FAQ

Portage salarial is a French concept that enables contractors and freelancers to carry out their work assignments through an intermediary third-party supplier, acting as an employer without having to set up a business.

A portage contract is a type of employment contract in France that combines the freedom of entrepreneurship with the safety of being an employee, providing workers with full statutory employment rights and associated benefits such as paid time off, unemployment benefits, healthcare, and worker protection.

You can work as a contractor in France by registering legally and selecting a legal business structure, such as an Individual Entrepreneur. Professional assistance may be needed to navigate the process.

Portage is a global investment platform which offers flexible capital and connects ambitious companies to investors, commercial partners, advisors and value creation experts. It is also an entrepreneurial hosting status for self-employed workers which delegates administrative tasks to a portage company.

Portage salarial is a three-way relationship between the freelancer, client company, and umbrella company that manages payments and administrative tasks.

cropped Travis Kliever 1
Article By
Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.

Search

Search