When hiring your first employees in France, you may be wondering whether supplementary social protection schemes are compulsory or optional. This article takes stock of the various benefits to be aware of and how they are funded by the employer, in accordance with the legislation in force.
Death and disability cover
In the event of death, incapacity for work or disability, your employees benefit from a basic level of protection through the French compulsory schemes, which is often insufficient. A supplementary death and disability contract tops up these minimum levels.
For managerial staff, the obligation is clear: the National Collective Bargaining Agreement on managerial pensions and death and disability of 14 March 1947, supplemented by the National Interprofessional Agreement (ANI) of 17 November 2017, requires the employer to contribute 1.50 % of band 1 of the pay (formerly band A) for its managerial and equivalent employees. This contribution, borne entirely by the employer, must be allocated as a priority to covering the death risk. In practical terms, more than half of this contribution must cover the death risk, that is at least 0.76 % of band 1.
For non-managerial staff, there is no equivalent general obligation: you should check whether your National Collective Bargaining Agreement (CCN) requires a death and disability scheme.
Group health insurance
Since 2016, every private-sector company has been required to offer all of its employees a group health insurance contract, which tops up social security reimbursements. The employer must fund at least 50 % of the contribution. Good supplementary cover limits out-of-pocket costs on the heaviest expenses and is a real lever for retaining employees and their families.
Supplementary and additional pensions
Your employees compulsorily contribute to the basic state pension scheme and to the Agirc-Arrco supplementary pension. These schemes are not always enough, however, to maintain their standard of living once retired.
To go further, the employer can set up an additional pension scheme (such as a company PER), funded by the employer and/or the employee. While not systematically compulsory, it makes it possible to pay a top-up with low taxation: an effective lever for appeal and retention.
Unemployment insurance
In France, every employee contributes to the public unemployment insurance scheme, now managed by France Travail (which replaced Pôle emploi on 1 January 2024). In the event of job loss, the employee can receive an allowance whose amount and duration depend on the salaries earned and the length of contribution.
Some profiles are not covered, however, in particular directors with employee-equivalent status (chairs of simplified joint-stock companies, minority managers and so on) and company officers. For them, it is strongly advised, though not compulsory, to take out a dedicated private unemployment insurance contract.
Professional assignments abroad
As an employer, you are responsible for your employees’ safety during their professional travel abroad, including during their non-working time. It is therefore essential to take out international insurance bringing together the key benefits: healthcare costs (from the first euro or as a top-up to social security / the CFE), assistance and repatriation, crisis management, private-life civil liability and so on.
What is changing in 2025-2026
Several recent changes affect social protection in companies:
- 100 % Health, wheelchairs: since 1 December 2025, wheelchairs (manual, electric or sports) have been fully covered, with the French statutory health insurance as the single point of contact. Within the framework of responsible contracts, supplementary health insurers must cover the difference between the reimbursement base and the maximum sale price of this equipment.
- Strengthened URSSAF audits: the compliance of group schemes and of waiver supporting documents (written request, certificates) is closely checked. A failure to comply means the loss of social exemptions.
- Value sharing: companies with 11 to fewer than 50 employees, generating a net taxable profit of at least 1 % of turnover for three consecutive years, must set up a value-sharing scheme (profit-sharing, incentive bonus, employer match or value-sharing bonus).
These developments aim to strengthen employee protection while securing employers’ exemptions. It is best to make sure that your contracts and procedures are up to date in order to avoid any reassessment.
How MIA can help
Between legal obligations, agreement-based requirements and URSSAF audits, structuring your employees’ social protection is no easy task. As a specialist insurance broker, MIA Assurances supports VSEs, SMEs, mid-cap companies and foreign companies established in France in building compliant, attractive and well-managed cover: health, death and disability, pension, directors’ unemployment and international mobility.
FAQ: compulsory benefits for your employees
- Is company group health insurance really compulsory?
Yes. Since 2016, every private company must offer group health insurance to its employees and fund at least half of it.
- Is death and disability cover compulsory for all employees?
It is compulsory for managerial staff (employer contribution of 1.50 % of band 1, allocated as a priority to death cover). For non-managerial staff, it depends on the applicable collective bargaining agreement.
- Is a director covered by unemployment insurance?
Directors with employee-equivalent status and company officers generally do not contribute to France Travail and are therefore not compensated if they lose their position. A private unemployment insurance contract is then recommended.
- What cover should be planned for an employee on assignment abroad?
Healthcare costs (from the first euro or as a top-up to social security / the CFE), assistance and repatriation, crisis management and private-life civil liability are among the essential benefits. - What does the employer risk in the event of non-compliance?
The loss of social contribution exemptions and a URSSAF reassessment, which can cover the last three years.
