Salary portage is a fast-growing form of employment. It is an attractive alternative for self-employed workers who wish to enjoy the benefits of salaried employment while retaining a degree of autonomy. Salary portage is also a solution for companies wishing to employ freelance workers without having to deal with the administrative formalities.
Salary portage is defined as a form of tripartite collaboration between a self-employed worker, a “salary portage” company and an end client. The freelance administration company acts as an employer for the self-employed worker. The self-employed worker is paid a salary, while the freelance administration company invoices the end customer for the services provided.
The “salary portage” model, created in France, is gaining in popularity in Switzerland. However, this model is sometimes used to present self-employed workers as employees for social insurance purposes, which does not comply with Swiss law. This practice exposes self-employed workers to the risk of being refused certain social insurance benefits, despite having paid contributions.
Salary portage offers a number of advantages for the self-employed. The self-employed are not able to take out unemployment insurance, and are not subject to compulsory occupational benefits or accident insurance. They can, however, take out voluntary occupational pension and accident insurance. However, there is no voluntary unemployment insurance for the self-employed.
This is where the “salary portage” model comes in, where the “portage” company acts as a fictitious employer for the self-employed, giving them access to unemployment insurance as well as compulsory occupational benefits and accident insurance. By paying social security contributions on behalf of the self-employed, the “portage” company transforms the fee into a salary, and takes care of regular administrative tasks such as collecting fees from clients. This provides the self-employed with the social security they need to pursue their professional activities with complete peace of mind.
Salary portage allows self-employed workers to benefit from salaried status and all the advantages that go with it, such as social security, paid leave, health insurance and so on. Portage salarial also gives freelance workers greater visibility and credibility with customers, as well as professional liability coverage.
For companies, freelance administration enables them to call on the services of independent workers, while avoiding the administrative formalities associated with direct employment. Companies can thus outsource certain tasks and benefit from greater flexibility in their human resources management.
In Switzerland, the “portage salarial” model, although authorized in France, is not recognized as a legitimate form of employment, as it is contrary to Swiss social insurance law. As a result, any self-employed person working on a “portage salarial” basis runs the risk of being denied benefits in the event of unemployment or accident. In addition, legal problems may arise with regard to occupational benefits.
It is important to note that the use of freelance administration in Switzerland can entail legal risks for self-employed workers, who may be denied certain social insurance benefits, such as unemployment or accident compensation, as well as legal difficulties in the area of occupational benefits. It is therefore advisable to find out about the various legal options available in Switzerland, and to check whether your accounting firm is a fiduciary, a service leasing company or a “portage salarial” firm.
Service leasing, also known as payrolling, is permitted in Switzerland. In this model, a service lessor assumes the functions of an employer, such as salary payments, settlement and payment of social security contributions, as well as declarations to tax and migration authorities in the case of foreign employees. The service lessor rents the services of an individual to a lessee company, transferring to it the management powers enjoyed by the employer. Companies using this model in Switzerland must obtain authorization to do so.
Unlike “salary portage”, “rental of services” is authorized in Switzerland, enabling self-employed workers to enjoy the social benefits associated with their employment. However, as with any form of employment contract, it is important to ensure that legal and contractual provisions are respected to avoid any legal or financial risks.
The Federal Social Insurance Office (FSIO) has drawn up an information sheet to raise awareness of the risks of “fictitious salaried employment”. We recommend that you find out whether your accounting firm is a fiduciary, a service leasing company or a “portage salarial” company (the latter model is not authorized in Switzerland).