Law on being a ‘working retiree’ in France
I have just sold my French business to a UK company who wish to retain me to work for them at gastronomic fairs and farmers’ markets. As I am living in France, and would like to continue working casually as a retraitée active, what is the law governing me working in this capacity? S.O.
As it is the French business that would be employing you, you would fall under French employment laws.
As to how you work, this largely depends on your choices and the options that are available to you. If you work only for the company, then the only status you have available is that of an employee, so the company will register you as an employee and deduct the relevant social charges and income tax from your salary.
If, on the other hand, you work for other organisations as well, you could set yourself up in self-employment, for example as a micro-entrepreneur, if your income is currently under €33,200/year.
This is generally favourable in terms of taxation as long as your business expenses are less than 25% of the income. There is also the benefit of set rates for social security payments, based on a percentage of gross income at rates that depend on whether your work would be classed as sales (12.8%) or a service (22%).
The only word of caution would be if you are drawing a French pension, where one would advise checking with the provider first, as in some cases pension organisations do not allow people to draw a pension and still work in some capacity in the same activity as the one through which the pension contributions were made.
As always, it is best to seek the advice of a suitably qualified professional.
Reader's query answered by Hugh MacDonald
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