Want to know more about Kaiporting and umbrella employment?
Our complete beginner’s guide to umbrella employment is designed to give you all the information you need to make informed decisions about your career.
FAQ
Everything you need to know about umbrella employment
1. The basics of umbrella employment
What is umbrella employment?
Umbrella employment (portage salarial) is a form of employment that lets an autonomous professional carry out assignments for their own clients while being employed by an umbrella company. The umbrella company invoices the client, pays the consultant a salary and handles the admin. It is governed by the French Labour Code and a collective agreement.
How does umbrella employment work in practice?
The consultant finds the assignment and negotiates the rate; the umbrella company signs a commercial contract with the client and an employment contract with the consultant. Each month it invoices the client and pays the revenue back as salary, after management fees and contributions. More details on our how it works page.
Who can benefit from umbrella employment?
Any professional with expertise, a two-year higher education diploma or three years' experience, who can find clients independently. Umbrella employment mainly concerns intellectual services: IT, consulting, training, project management. Personal services are excluded by law.
Is umbrella employment possible for every activity?
No. Umbrella employment is reserved for services requiring expertise, mainly intellectual ones. The law excludes personal services (childcare, elderly care, cleaning), as well as most regulated professions such as lawyers or doctors.
2. The benefits of umbrella employment
Is an umbrella employee a real employee?
Yes. The umbrella employee signs an employment contract, fixed-term or permanent, with the umbrella company and receives a payslip every month. They are covered by the general social security scheme, contribute to unemployment insurance and supplementary pension, and benefit from health insurance and paid leave.
What income optimisation does umbrella employment offer?
Umbrella employment lets you optimise your income through several elements:
- The ability to deduct business expenses (travel, meals, equipment).
- Access to employee status on a project-based permanent contract, including social contributions that open social security rights.
- Simplified income management that avoids the administrative complexity of self-employed statuses.
What are the benefits for an IT consultant?
Umbrella employment is particularly well suited to IT consultants thanks to:
- Flexibility: they can manage several clients without the constraints of setting up a company.
- Security: they enjoy employee status with full social protection (health insurance, pension).
- Administrative simplicity: Kaiporting handles invoicing, declarations and administrative follow-up.
- Showcasing their expertise: by focusing solely on their assignment, consultants gain efficiency and credibility.
3. Administration
Does umbrella employment involve additional costs?
Yes, management fees charged by the umbrella company, generally between 5% and 10% of revenue excluding VAT; at Kaiporting they are 4%. Social contributions are those of a regular employee. There are no company set-up costs and no accountant fees.
How do you switch to umbrella employment?
Find an assignment and negotiate your daily rate, then contact Kaiporting for a simulation. We sign the commercial contract with your client, you sign your umbrella employment contract and you start. Each month, you declare your activity online and receive your salary before the 30th.
Which administrative formalities does Kaiporting handle?
Kaiporting handles all the administrative formalities related to umbrella employment, including:
- Drafting and signing employment contracts and umbrella agreements.
- Invoicing clients and tracking payments.
- Calculating and paying salaries after deduction of charges.
- Declarations to social and tax bodies (URSSAF, pension, etc.).
- Managing training funding requests.
Which insurance covers an umbrella employee?
Umbrella employees are covered by the following insurance:
- Professional liability: covers damage caused during the assignment.
- Health and workplace accident insurance: included in the general social security scheme.
- Provident cover: protects against incapacity, disability and death.
- Unemployment insurance: the umbrella employee pays unemployment contributions.
4. Pay and business expenses
How is income determined in umbrella employment?
Your income depends on the revenue you invoice. The umbrella company pays it back as salary after deducting management fees and social contributions. At Kaiporting, net salary averages 60–65% of revenue excluding VAT, not counting reimbursed business expenses.
Can I simulate my salary with Kaiporting?
Yes, Kaiporting offers a salary simulator to estimate your umbrella income. The simulator takes into account:
- Your forecast revenue.
- The management fees applied by Kaiporting (4% all-inclusive).
- Mandatory social contributions.
- Any deductible business expenses.
This tool helps you anticipate your net income and adjust your strategy accordingly.
Which business expenses are covered?
- Meal expenses: cover food costs incurred during business assignments.
- Mileage expenses: cover your business travel by car.
- Transport expenses: train, plane or taxi tickets and other transport essential to your work.
- Work equipment expenses: laptops, specialist software, peripherals and any other equipment needed to carry out your IT assignments effectively.
5. Legality and obligations of umbrella employment
Is umbrella employment legal?
Yes. Umbrella employment is legal in France. Recognised by law since 2008, it is governed by the Labour Code (articles L1254-1 et seq.) and by the 2017 collective agreement for umbrella employees. Every umbrella company must hold a financial guarantee.
What are the legal obligations of an umbrella employee?
To work through umbrella employment, the independent professional must meet the following criteria:
- Professional expertise
Have specific skills and proven mastery of your field, enabling you to assess and deliver projects for clients.
- Minimum qualification
- Level 5 qualification (two years of higher education) or equivalent.
- Otherwise, at least three years of professional experience in the relevant sector.
- Autonomy
Be able to:
- Prospect and select your own clients.
- Negotiate the terms and rates of your services.
- Freely organise your schedule to carry out assignments.
- Minimum pay
The minimum gross monthly pay is set at:
- Junior umbrella employee (less than 3 years' seniority): 70% of the monthly social security ceiling (PMSS).
- Senior umbrella employee (at least 3 years' seniority): 75% of the PMSS.
- Employee on a days-based package: 85% of the PMSS.
Note: the 2026 PMSS is €4,005; these percentages correspond to €2,803.50, €3,003.75 and €3,404.25 respectively.
- Business introduction allowance
A bonus equal to 5% of gross monthly pay, recognising the prospecting work done by the umbrella employee.
Example: for gross pay of €3,000, the business introduction allowance would be €150.
