WHO MUST PAY SOCIAL SECURITY IN FRANCE WHEN WORKING ON A YACHT?
For international yacht crew, understanding social-security obligations can be particularly important when working aboard a vessel operating in France or French territorial waters. Depending on the circumstances, crew members may be required to make contributions to the French social-security system.
The rules can depend on factors such as the yacht’s presence in France and the crew member’s residence and economic circumstances. This guide explains the situations in which French social-security contributions may apply and what yacht crew should know about the requirements.
WHO MAY BE REQUIRED TO CONTRIBUTE IN FRANCE?
There are two main circumstances in which yacht crew may fall under the French social-security requirements.
1. THE YACHT SPENDS A SUBSTANTIAL PART OF THE YEAR IN FRANCE
Crew members working on a yacht that remains in France for 183 days or more within the calendar year may be required to contribute to French social security when they are not already contributing to a social-security system in another country.
The relevant period runs from 1 January to 31 December. It is not calculated as an ongoing 365-day period.
OR
2. THE CREW MEMBER IS REGARDED AS A FRENCH TAX RESIDENT
French social-security contributions may also apply where the crew member is considered resident in France for tax purposes.
Circumstances that may be relevant include:
• Being physically present in France for more than 183 days during the calendar year; • Maintaining a main or principal home in France; • Having a home in France where the crew member’s family lives, even when the crew member works outside France; • Operating a business in France, whether as a salaried individual or otherwise; or • Having the main centre of economic interests in France, including principal investment income or the headquarters of a business.
These circumstances are particularly relevant to yacht crew who live in France, maintain a home there, or have business or financial interests in the country.
WHY WAS FRENCH SOCIAL SECURITY INTRODUCED FOR YACHT CREW?
The French legislation was introduced in connection with France’s obligations under the Maritime Labour Convention (MLC) concerning social protection for yacht crew members.
The intention is to ensure that yacht crew members have access to social protection comparable with that available to workers employed ashore.
For crew members who contribute to the French social security system, the potential branches of protection include:
- Medical/Healthcare
- Sickness benefits
- Employment injury benefits
- Invalidity/Disability benefits
- Old-age benefits/Retirement pensions
- Survivor’s benefits, Death/Life insurance
- Family benefits
- Maternity benefits
The conditions applying to these benefits depend on the applicable French requirements.
DOES THE YACHT’S PRIVATE OR COMMERCIAL STATUS MAKE A DIFFERENCE?
The requirements are not limited to commercial yachts. They can also apply to crew employed aboard private vessels when the conditions requiring French social-security contributions are met.
Consequently, the private status of a yacht does not automatically exclude its crew from French social-security obligations.
COULD THESE REQUIREMENTS INFLUENCE WHERE YACHTS ARE BASED?
France is not the only country with social-protection obligations for yacht crew members.
Other countries that are parties to the Maritime Labour Convention, including Italy and Spain, also have obligations relating to social protection for yacht crew members.
The social-security treatment of yacht crew is therefore relevant beyond France and forms part of the wider regulatory framework affecting the international yachting industry.
HOW ARE THE CONTRIBUTIONS CALCULATED AND PAID?
French social-security contributions are calculated according to the applicable rules and may vary depending on the crew member’s rank and remuneration.
For example, the contribution applicable to a captain may differ from that applicable to a deckhand.
The administrative responsibility for these payments does not normally rest with each crew member individually. The yacht’s captain and/or management company is responsible for handling the process.
The yacht must submit the required information to ENIM, including details concerning crew members and their remuneration where French social-security contributions apply.
ENIM determines the applicable amount for each crew member, after which the employer makes the required payment.
The information must be kept up to date when crew members join or leave the yacht. The required social-security declarations must also be submitted within the applicable deadlines.
WHAT SHOULD JOBSEEKERS KNOW BEFORE JOINING A YACHT IN FRANCE?
Anyone considering a yacht position involving a vessel based in France should establish whether French social-security contributions could apply to them.
This may be particularly relevant where the candidate:
• Is resident in France;
• Maintains their main home in France;
• Has family living at a residence in France; • Operates a business in France; • Has significant financial or economic interests in France; or • Is joining a yacht that spends a substantial part of the year based in France.
Knowing whether French social security applies to your circumstances is an important consideration when accepting yacht employment in France.
FURTHER INFORMATION
The application of French social-security requirements to international yacht crew can involve a number of different circumstances.
Crew members and employers should ensure that they have current information about the requirements applicable to their situation and seek professional advice where necessary.
DISCLAIMER
This article is intended as a general guide and does not constitute legal, tax or social-security advice. Regulations and requirements may change, and individual circumstances may affect how the rules apply.
Crew members and employers should seek professional advice regarding their specific situation.
