Provident scheme: impact of changes in 2025

Every new year brings its share of legislative and regulatory measures. The government's current context leaves it unclear which measures will apply and when. However, it is certain that social protection schemes, and especially provident schemes, will be affected by significant changes in 2025, although certain parameters have yet to be specified.

Here's an overview of the main changes announced.

1. Decrease in reference salary in benefit plans in the event of work stoppage

The initial version of the Social Security Financing Bill(PLFSS 2025) envisages lowering the ceiling on wages taken into account by Social Security for the calculation of Indemnités Journalières de la Sécurité Sociale (IJSS).

Currently: salaries are taken into account up to 1.8 times the SMIC.
Proposed change: 1.4 times the SMIC (i.e. €2,522.52 in 2024).

Wage continuation and supplementary provident benefits are deducted from the daily social security allowance (IJSS), and the employer will initially supplement this reduction, followed by the provident scheme.
This change comes at a time when absenteeism is on the rise, with a direct impact on provident contracts. Indeed, the increase in the number of work stoppages is generating a greater volume of stoppages to be covered. Added to this is the aging of the working population and the duration of absences, which have a direct impact on the cost to insurers. Insurers will have to compensate for a greater proportion of claims.

2. Changes to the rules governing the extension of sick leave and the impact on the provident scheme

Since September 2024, the Caisses Primaires d'Assurance Maladie (CPAM) have been tightening up their practices.
In the past, when a work stoppage was extended after a weekend or public holiday, the CPAM covered these days in the IJSS.

Henceforth, the rule is not to include them in the payment of IJSS when they are not part of the medical prescription.
With this new rule :

Weekends and public holidays not covered by a work stoppage renewal prescription are no longer compensated.
If an extension occurs after an interruption of more than 48 hours, a new waiting period applies.

As the payment of IJSS triggers the payment of IJC, the suspension of IJSS could have an impact on the payment of benefits under the provident scheme, depending on insurers' practices and how these changes are taken into account.
However, the market seems to be aligning itself so as not to penalize policyholders as a result of this change in practice.

3. Employer's counter-visits during work stoppage

The decree of July 5, 2024 specifies the conditions of application and implementation of the employer-requested medical examination:

Inspections may be carried out at any time during the shutdown, without prior notice, outside authorized exit times.
The employee must inform the employer of his home address if it is different from his usual address.
The appointed doctor may summon the employee or visit him at home.
The doctor informs the employer of his conclusions concerning the justification for the employee's absence from work or the impossibility of monitoring the employee.
Employer sends information to employee

These reforms are part of an evolving legislative framework, with certain measures awaiting clarification following the adoption of the next PLFSS. As advisors, we anticipate these changes to assess their impact on your group benefit plans.

FAQ, frequently asked questions :

What is a provident contract?

A provident insurance policy provides financial protection for a person and his or her loved ones in the event of unforeseen events affecting health, work capacity or life.

It can cover risks such as death, disability, incapacity for work or long-term care. Depending on the guarantees chosen, the contract can pay a lump sum, an annuity, or compensate for loss of income.

This type of contract can be taken out on an individual basis, or as part of a group plan offered by an employer. It offers essential security to cope with life's hazards and maintain a certain financial stability.

What does provident insurance cover?

Provident insurance covers the risks associated with life's hazards, which can affect a person's health, ability to work or financial situation.

It generally includes :

Death: payment of a lump sum or annuity to the designated beneficiaries.
Incapacity for work: compensation for loss of income in the event of temporary work stoppage.
Disability: payment of an annuity to compensate for permanent or permanent loss of work capacity.
Long-term care (depending on the contract): coverage of expenses related to loss of independence.

Some plans may also include additional benefits, such as accident coverage or funeral expenses. Coverage varies according to the contract and the insured's specific needs.

Is provident insurance compulsory?

Provisions are mandatory in certain cases.

Certain collective bargaining agreements require employers to set up a provident scheme for their employees, notably to cover the risks of death, disability or incapacity for work. What's more, in accordance with the Accord National Interprofessionnel (ANI), employers are legally obliged to contribute to death cover for managerial staff.

Apart from these specific situations, provident insurance is not compulsory, but it is strongly recommended as protection against life's hazards. Whether you're an employer, employee or self-employed, taking out a provident scheme can provide valuable financial security.

How do you set up a provident scheme?

Setting up an employee benefits plan may seem complex, but by calling on the services of a social protection consultant, you can simplify the process.

The first step is to identify your specific needs. What risks do you want to cover? Death, disability, sick leave? And for whom? Employees, managers? And for whom? Employees, managers?

At Gerep, we help you to ask the right questions and analyze your data, thanks to our social protection audit, to offer you a tailor-made solution. All the while ensuring that all legal and contractual obligations are met.

Secondly, you'll need to choose your offer. A broker is independent of insurers, enabling him to compare the offers available on the market. He or she will negotiate contracts on your behalf, with advantageous cover and optimized costs, taking into account the specific features of your company.

Once the partner has been chosen, the brokerage firm will help you draw up the necessary documents: description of cover, financing methods (employer, employee or shared), and practical arrangements.

Secondly, it can help you communicate effectively with your teams, promoting the plan as a major social asset. This helps build employee loyalty, while clarifying their rights and the steps to take should the need arise.

The broker's role doesn't stop once the plan is in place. He steers and optimizes your scheme on an ongoing basis, using tools such as dashboards and customized reporting. He also ensures that your plan is adjusted in line with regulatory changes, your economic situation and your employees' needs.

What’s likely to change for your pension plans in 2025?

1. Decrease in reference salary in benefit plans in the event of work stoppage

2. Changes to the rules governing the extension of sick leave and the impact on the provident scheme

3. Employer's counter-visits during work stoppage

FAQ, frequently asked questions :

What is a provident contract?

What does provident insurance cover?

Is provident insurance compulsory?

How do you set up a provident scheme?

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