Independent workers in France

Innovations in extending social insurance coverage to independent workers 57 a Self-employed shopkeepers, craftsmen and industrialists commercants, artisans et industriels 2 , are covered by a unique social protection regime, the Régime Social des Indépendants RSI. b Liberal professions professions libérales are covered by the RSI for health insurance and by various schemes depending on the sector of activity for pension and provident schemes. c Self-employed farmers agriculteur exploitant chef d‟exploitation are covered by the Mutuelle Sociale Agricole MSA for health, pension and provident schemes. Non paid workers are covered either by relatives‘ schemes or by non-contributory schemes in France, since they are not considered independent workers. Any self-employed person who declared his or her revenues falls into one of the above categories depending of the nature of his or her activities including non-salaried paid domestic work, etc.. Figure 15. France: Social protection schemes for independent workers in France, 2012 Source: Drawn up by the author on the basis of institutional activity report of Caisse Nationale RSI, 2011b and MSA, 2012b. This paper concentrates on the RSI and MSA schemes since they cover the majority of French independent workers and since the situation of liberal professions in France is unique and therefore not usefully transferable to other settings. a Social Scheme of Independents Régime Social des Indépendants - RSI The RSI was created in 2005 3 and merged three existing insurance funds: the CANAM, the ORGANIC and the CANCAVA 4 and their respective networks. It covers the following target population: 2 NT: In France professionals such as the baker, the butcher, the shoemaker are considered entrepreneurs of micro and small enterprises artisans. 58 France – Social security coverage of independent workers in the schemes RSI and MSA ■ Self-employed craftsmen registered at the ―registre des métiers‖ specific registry for craft activities. ■ Self-employed people working in industry and trade registered at the ―registre du commerce et des sociétés ‖ registry for trade and companies. ■ Some other self-employed people working in specific services professions, such as commercial agents, head of private education institutions, etc. registered as independent businesses. ■ Liberal professions for health insurance only such as architects, lawyers, doctors, etc. 5 . ■ Self- employed of the two first categories‘ spouse who decided to be registered as ―conjoint collaborateur‖ spouse who also work for the business as a non-salaried worker. ■ Auto-entrepreneurs see details below. For this target population, affiliation to the RSI is mandatory. The RSI has a representative structure and ensures affiliation, contribution collection, benefit provision and preventive medical actions in favour of affiliated members. In 2010, the RSI had 2.5 million contributors of whom three quarters were men, it covered 3.9 million people for health insurance for a total of 6.8 billion euros and provides pensions to 2 million people for a total of 8.3 billion euros. b Social Agricultural Mutual Fund Mutualité Sociale Agricole - MSA The MSA was created in 1900 as a form of mutual insurance for people working in agriculture, including both non-salaried and salaried workers. The MSA was very close to farmers‘ unions at the time and maintained an exclusively rural focus for instance, contrary to other mutual insurances, it never opened to other types of memberships. This specific identity was in keeping with, and continues to fit to some e xtent today, farmers‘ needs and identity. When the social security system was created in 1945, the MSA was put in charge of the management of farmers‘ social security, which remained fairly independent and distinct from the rest of the social security system. Farmers in France, along with other independent workers to some extent, were reluctant to adopt a centralized, state- coordinated social security system, believing at the time that private insurance was the most effective way of ensuring coverage and that state intervention would result in a rise in social taxes with no real or perceived increase in benefits. This situation explains why the independent farmers‘ scheme took some time to become harmonized with the other social protection schemes. The MSA protected more than 1.6 million people through the non-salaried scheme in 2011, including 28 active contributors, 53 per cent retired famers and 19 per cent of 3 Ordonnance n°2005-1528, December 8th, 2005. 4 Respectively: Caisse nationale d‘assurance maladie des professions indépendantes CANAM; Organisation autonome nationale de l‘industrie et du commerce ORGANIC; Caisse nationale d‘assurance vieillesse des artisans CANCAVA. 5 Registered and affiliated to the appropriate pension funds.