Pension Rights of Auto-Entrepreneurs 2013
Tuesday 05 February 2013
The level of the minimum turnover required for auto-entrepreneurs to obtain pension rights has been revised for 2013.
If you run a business as an auto-entrepreneur you will pay a fixed percentage of your turnover in social security contributions.
The actual percentage contribution varies by type of business, as we set out in a recent article.
The size of pension rights earned each year will depend on the turnover of the business, and a minimum turnover is required to earn such rights.
The minimum turnover per qtr/year differs by type of business occupation.
For those in sales it is €6,501; those in a service activity, €3,772; for professionals it is €2,858.
However, this figure is arrived at after deduction of the standard cost allowance for each type of activity - either 71%, 50%, or 34%.
These cost allowances as those that apply for the 'regime de base' for a micro-entreprise.
The following table shows the turnover needed to obtain one to four quarters' pension rights in 2013.
|Pension Turnover Thresholds|
|Type of business||Cost Allowance||One Qtr||Two Qtrs||Three Qtrs||Four Qtrs|
|Services (BIC)||50 %||€3,772||€7,544||€11,316||€15,008|
|Professional (BNC)||34 %||€2,858||€5,715||€8,573||€11,431|
The amount of pension you will actually receive will depend on the number of quarters' you earn, although there are minor variations by type of scheme.
This article was featured in our Newsletter dated 05/02/2013