Do VDIs contribute to pensions?

There are many advantages to being a VDI, including the fact that you can be self-employed and still benefit from social security cover. But are the contributions paid by a VDI entitled to a pension?

VDI status

What is the status of a home seller ? How is a VDI paid?

The status of the VDI, like their remuneration, depends on the contract they sign with the company they represent. Two types of status are frequently used to govern VDI activity:

- Sales agent status: remuneration is the sum of commissions paid and set by the company on the basis of product or service sales (the rate is applied to the VDI's turnover and is generally between 20% and 35%).

- Buyer-reseller status: the VDI sets its own selling prices. The margin they make on their sales determines their remuneration.

What are the obligations for VDIs?

VDI status simplifies formalities. However, as the profession of independent door-to-door salesperson is highly regulated, VDIs are bound by a number of obligations:

- Declaration of activity at start-up;

- Income declaration ;

- Registration if the legal turnover threshold is exceeded for 3 consecutive years. Sellers are registered with the RSAC (Registre Spécial des Agents Commerciaux) and buyers are registered with the RSC (Registre du Commerce et des Sociétés).

Note: unregistered VDIs are treated in the same way as employees and are covered by the Social Security system. As soon as they are entered in a professional register, they are affiliated to the general scheme for non-salaried workers (TNS).

What contributions are required of VDIs?

Whether you work full time as a VDI or combine two jobs, VDI status entitles you to benefits that are virtually identical to those of an employee.

As an activity in its own right, VDI offers social security cover thanks to the contributions paid: health insurance (sickness, maternity, etc.), old-age insurance (retirement), family allowances, industrial accidents, CSG, etc

However, VDI status does not entitle you to unemployment benefit if you stop working. Self-employed home sellers do not contribute to the unemployment insurance scheme.

Similarly, VDIs do not pay contributions to a supplementary pension fund.

• Contribution rates for VDIs

VDI contribution rates follow a progressive scale, increasing with income (gross per quarter):

- VDIs earning less than €606 gross per quarter are exempt from contributions;

- A VDI earning between €606 and €1,616 gross per quarter pays flat-rate contributions;

- For income between €1,616 and €5,454 gross per quarter, contributions are calculated on the basis of a flat-rate base in stages, applying the standard rates;

- For income of €5,454 or more: contributions are calculated in accordance with ordinary law, based on the home seller's actual income.

• Validation of quarters for pension entitlements

VDIs acquire pension rights on the basis of their income.

To validate one quarter of pension entitlement, they must earn at least 150 times the minimum hourly wage.

This is equivalent to an income of at least €1,690.50 per quarter, to be able to validate 1 quarter of pension rights (or €6,762 for the year, to validate 4 quarters of pension rights).