Wage portage
01/02/2019 by Hicham HMICHE
01/02/2019 by Hicham HMICHE
The term may seem strange and somewhat obscure. However, it is easy to define wage portability. This is a relatively new way of working that allows a person to embark on the adventure of entrepreneurship by enjoying the benefits of being an employee. It is therefore the perfect way to be active, independent and at the same time socially covered like any other employee. For the employee being carried, this system allows the invoicing of services without any administrative or legal constraints. No need to compare the different possibilities of legal status since business creation is not necessary. In exchange for a salary payment and the guarantee of the benefits conventionally attributed to this type of contract, the salary carrying company is remunerated in the form of management fees. For the employee being carried, this means that the entire administrative management is handled by the company. A significant advantage for all those who aspire to a professional life marked by more autonomy without the disadvantages!
Wage portability first appeared in Europe about 30 years ago. Gradually, it has established itself as an efficient and easy to implement alternative for invoicing services and working as a self-employed person. The Syndicat des Professionnels de l'Emploi en Portage Salarial (PEPS) counted 70,000 employees in France in 2017. Together, they achieved a total turnover of approximately 900 million euros. And growth continues with an average annual rate of nearly 20%. In ten years, 400,000 jobs have been created in France thanks to wage portage. Framed by specific legislation, this system has become a very interesting solution for developing a self-employed activity in a reassuring and reassuring environment.
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The device can be divided into four successive steps. The first is for the employee who is inclined to carry out assignments for his client. The latter then pays the amount of the invoice to the wage carrying company. Finally, following this, the employee on the job receives a pay slip from the carrying company, corresponding to the turnover of his benefit deducted from the various contributions (pension, social security, health insurance, etc.).
The great advantage of wage portage is that you can do business freely while enjoying the privileged status of an employee. In other words, the employee being carried is an employee like any other. The difference is that he is perfectly autonomous in carrying out his professional activity on a day-to-day basis. Being a consultant means remaining fully responsible for your network and customer portfolio, in any situation. He thus enjoys great freedom in the organization of his working days while the administrative management is entrusted to the holding company. The employee concerned makes his decisions in total autonomy. He does not work for a single company, as in the case of traditional salaried employment, but rather performs different tasks for different clients. It is up to him to negotiate the terms of his services, from the terms of payment to the pricing of his activity and whether or not he requires a down payment.
Following the portrait of the wage portage that has just been drawn up, the major advantages have certainly already been identified. There are many of them, which explains the growing success of this system. First of all, it is possible to mention the gain of freedom and autonomy for the employee being carried. As an independent, he can manage his time and relationships with his clients as he sees fit. Carrying has the advantage of not forcing him to choose a particular legal structure to carry out his activity.
Unlike other self-employed workers, the employed person benefits from the same protection as a traditional employee, whether in terms of social security, training, retirement or even unemployment insurance. It is even possible for him to declare his professional expenses, for example travel expenses, material acquisition or internet connection. Other statuses popular with the self-employed, such as self-employment, do not always allow this.
Wage portability is also advantageous for companies, when they need experts for a one-time assignment only. Thanks to the porting, they are not linked to employee constraints, such as the management of application files, the recruitment process or workloads. This system operates without any subordination between the service provider and the customer. The scope is considered as an external service provider.