Life and Health insurance – 1/3 – The Law

On the 1st of January 2016 it became mandatory for every company under French social law to offer life and health insurance (called “prévoyance” and “mutuelle” in French) to its employees.

What does this means?

What will be the cost for the company and for the employees? And for what benefits?

How does the company setup these contracts?

The French labour law can appear very complex to a foreigner. Our job is to simplify it to the core issue you must deal with.

Therefore, we will see, as simply as possible, what are your legal requirements, how much will it cost you and how to best set it up.

The law

The law

Simply translating the articles of the law would be the best way to make a simple matter complicated. To make it simple here are you legal obligations.

Your company must provide a life insurance to its officers (called “cadre” in French).

Your company must provide a health insurance to all its employees.

Of course, it cannot be that simple.

As you know every company it provided an activity code (called “code APE” in French) when it is registered to the French authorities. Based on that activity code a specific collective bargaining agreement apply.

Most of the collective bargaining agreement state that the company must also provide a life insurance to the non-officers employees.

French Payroll Expert advice

You must first check you collective bargaining agreement. If it indicate a specific life insurance regulation you must apply it.

Otherwise, you must have a life insurance contract for you officers and a health insurance contract for all your employees.


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