
How much does a minimum wage cost for the company?
Hiring an employee at the minimum wage is not limited to paying €1,801.80 gross per month. Between employer contributions and social charges, the actual cost for the employer is much higher.
You want to know how partial unemployment in wage portage works? In times of crisis, some companies resort to partial unemployment as an alternative to economic layoffs. Due to their status as employees, consultants in wage portage may thus be affected by the system under certain conditions. This article provides you with all the information you need to know on the subject: from the functioning of unemployment in wage portage to the calculation of partial unemployment compensation to the eligibility criteria for ported employees.
In certain crisis contexts, a company may face serious financial problems, which may lead it to temporarily suspend the activity of its employees. This is the principle of partial or technical unemployment. In this situation, it can turn to the public service and payment agency (ASP) to request partial compensation. This will serve to cover the salary of its employees. To benefit from this aid, it must justify valid reasons for establishing partial activity, namely:
The request for partial unemployment is made by the employer via the online portal for partial activity. It must be made within a 30-day period from the moment its employees have been placed on partial unemployment. Due to their status as employees, ported consultants have the right to benefit from this system regardless of their type of contract, seniority, or working hours. For ported employees on permanent contracts, compensation will occur until the end of their mission with the client (as stipulated in the contract). The ported employee on a fixed-term contract is compensated on the same basis as other employees, which is 70% of their gross hourly wage. Whether they are on a permanent or fixed-term contract, ported employees must present a justification for suspension, cancellation, or end of mission to their umbrella company.
To benefit from partial unemployment, ported employees must meet the main conditions defined by the decree n° 2020-325 of March 5, 2020: they must have signed their employment contract (permanent or fixed-term) with their wage portage company before March 16, 2020 or have concluded their service contract with the client company before that same date.
To be eligible for partial unemployment, ported employees must be in one of the following two situations: you are a employee in permanent wage portage and your mission is postponed or interrupted, or you are a fixed-term employee with an uncertain end date and are able to justify the interruption of your mission.
💡_Good to know: if you are registered with an umbrella company but do not have an ongoing mission, you cannot benefit from partial unemployment._
The amount of partial compensation corresponds to 70% of the gross base hourly rate multiplied by the number of hours not worked eligible for partial activity. This gives the following calculation formula:
Partial compensation = (gross hourly rate x 70%) x number of hours not worked
This compensation is paid within the limit of a remuneration of 4.5 times the minimum wage and a minimum of 8.03 euros per hour. The calculation takes into account the non-working hours within the limit of 35 hours per week.
Let's illustrate this calculation with a concrete example: An employee earns 30 euros gross per hour (which is about 3 times the gross minimum wage) for a 35-hour weekly work contract. They find themselves on partial unemployment for 2 weeks.
Their hourly compensation is equal to: 70% x 30 = 21 euros.
21 euros is greater than 8.03 euros, so no floor applies.
The total compensation paid by the State to the employer amounts to: 21 x 35 x 2 = 1,470 euros.
This amount is then paid to the employee, but is subject to a deduction of 6.7% for CSG and CRDS. The ported employee thus receives an amount of approximately 1,371.50 euros.
The ported employee benefits from the same calculation rules for partial unemployment compensation as a regular employee: 70% of their gross remuneration (which is about 84% of their net salary) subject to CSG and CRDS.
You now know how partial unemployment in wage portage works. Remember the essentials:
To better understand your remuneration as a ported consultant, check out our article on the costs of wage portage.
Hiring an employee at the minimum wage is not limited to paying €1,801.80 gross per month. Between employer contributions and social charges, the actual cost for the employer is much higher.
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