What is Madeline’s Law?

As soon as you decide to adopt freelancer status, you integrate a branch of Social Security customized specifically for your situation: Independents’ Social Security (formerly called RSI, Independents’ Social Security).

This organization provides very basic social cover and does not necessarily take into account all the specific needs of self-employed workers.

To address the weaknesses of mandatory governance, the February 11, 1994 law, known as the “Madeleine Law”, seeks to provide additional protections to freelancers regardless of their activities.

To encourage self-employed workers (TNS) to cover themselves in addition to their basic mandatory plan, Madeleine* laws require contributions paid under so-called Madeleine contracts to be tax deductible from taxable gains or income tax income. allows. certain conditions.

Mutual health insurance designed for GSMC, TNS partner

Codeur.com has selected GSMC as a privileged partner to protect the registered freelancers on its platform. Indeed, GSMC has an offer for the best value for money in the market exclusively for freelancers.

search for offers

madeleine law definition

Madeline law allows a tax deduction of contributions paid by a self-employed employee, subject to certain conditions, to form a supplemental pension or health guarantee.

All contributions paid within the framework of these guarantees can be deducted from the taxable income of the self-employed employee within the limits of the tax limit.

Who is affected by the Madeleine Law?

The Madeline Law is specifically aimed at non-salaried workers (TENS). You can take advantage of its benefits if you fall under any of the following categories:

  • TNS subject to income tax linked to the category of Industrial and Commercial Profit (BIC)
  • TNS subject to tax on non-business profit (BNC)
  • TNS subject to the tax treatment of remuneration specified in Article 62 of the General Tax Code
  • TNS linked to Compulsory Health and Old Age Scheme of TNS (Non-Agriculture), such as:
    • craftsman, merchant or industrialist
    • Liberal professionals: doctors, paramedics, lawyers, architects, notaries, bailiffs, etc.
    • Self-employed managers and managers of limited partnership by shares
  • Unpaid Associate Spouses of Self-Employed Workers

madeleine contract

There are different types of Madeline contracts set up to meet the different security needs of the freelancer.

mutual insurance contract

As a freelancer, you have the right to subscribe to supplemental mutual insurance.

However, traditional mutuals are often aimed at students and staff and are not suited to your case. Reimbursement rates and contributions are calculated based on Social Security…

The Madeline mutual insurance contract is tailored to your situation as a self-employed employee and provides reimbursement commensurate with Social Security’s rates for the self-employed. Even certain health expenses “out of name” may be covered by this contract.

Another option is to subscribe to mutual funds designed specifically for TNS. This is the case of GSMC, mutual funds historically committed to cover the self-employed.

retirement contract

The Madeline retirement contract helps the freelancer to build additional capital for their old age.

Supplementary pension is returned in the form of compulsory pension as well as annuity.

pension contract

A future contract enacted by Madeleine law is intended for self-employed workers who wish to receive benefits from income maintenance in the event of sick leave or disability.

This contract also allows the freelancer to protect his or her family in the event of death.

unemployment insurance

When you have to close your business, the flow of income stops overnight. It is often difficult to live with this situation, especially since the inevitable expenses continue (rent, electricity, credit, water, internet, etc.). Madeline Law provides unemployment insurance to TNs which helps them maintain their remuneration for a set period. Time. By contract, in the event of the liquidation or termination of the activity.

Benefits of Madeline Law for a Freelancer

The purpose of the Madeline Law is to reduce inequalities in Social Security between employees and entrepreneurs. They may benefit from better reimbursement for general medical care, but may also be fully reimbursed for more serious care.

In addition, they can build up capital to leave with a more comfortable retirement than those offered by Social Security for the self-employed.

It should also be understood that the day the work is not done is equal to the day which is not paid. Madeline contracts provide more generous daily allowances than the independent’s Social Security, which help the freelancer maintain her standard of living, even if she has to stay in bed for several weeks.

Terms of Subscription to Madeline Agreement

To benefit from the taxation provided by Madeline Law, you must:

  • Enter into a group insurance contract, as an association, with at least 1,000 members pursuing or exercising a self-employed activity
  • Stay up to date with your contributions under your Essential TNS Health and Old Age Scheme (Non-Agriculture).
  • The contribution should be of a regular amount and should be paid at least once in a year.

By subscribing to GSMC Mutual, you enter into conditions to benefit from Madeleine taxation.

search for offers

Taxation of Madeleine Contract

Depending on the nature of the contracts entered into by the freelancer, the tax benefits from which he benefits vary.

The deductible amount takes into account the tax regime under which the freelancer is (BIC or BNC).

Madeline contracts are deductible from taxable benefits: pension, future or mutual insurance contributions are therefore partly financed by tax savings.

Please note: You cannot deduct all Madeline contributions. They are capped at a flat rate of 3.75% of professional income + 7% of the annual Social Security limit to avoid abuse.

In 2021, for supplemental health insurance, the maximum limit is €9,872.64, plus 3.75% of your declared professional income.

Contribution can be paid by yourself or by your company.

Madeline Law: what to remember?

As soon as you choose to leave employment to start your own business, it is advisable to subscribe to Madeline Agreements for your own safety.

You are not obligated to take the most important contracts right away, but the original contract makes it possible to compensate for disparities and avoid some of the stress of the time.

You can also subscribe to contracts specifically adapted to the self-employment situation, such as a protection contract offered by a GSMC mutual insurance company.

Related Stories


Zen by LegalStart: An anti-scam shield for entrepreneurs

Created almost ten years ago with the aim of simplifying and digitizing the legal...

social network, an opportunity

Social networks have invaded our world. Facebook, Twitter, LinkedIn, YouTube, Pinterest, Instagram... and...

Self-employment in France: revival of activities and income

At the end of 2021, France will have no less than 3.9 million self-employed...

fundraising fashion

Fundraising has become a major trend in the business world. Whether promising startups,...

Ten Mistakes Entrepreneurs Shouldn’t Make

Almost every day, we learn that new laws are coming,...

Which tools for more efficient management?

There are many responsibilities involved in managing a DSI (Department of Computer Services). ...

Popular Categories



Please enter your comment!
Please enter your name here