Salary simulation in umbrella company: evaluate your compensation
Umbrella company is based on a well-established legal framework that specifies its operating conditions. However, many practical questions regarding the
remuneration of the consultant working under an umbrella company remain unanswered.
Simulate based on your turnover or target net salary
Our simulator is free. The
simulation shows you your net salary based on your
turnover, professional expenses, tax situation, and other criteria such as health insurance... You also have the option to perform a simulation based on the net salary you desire. In this case, our umbrella company salary tool calculates the amount of turnover needed to achieve this salary.
Our umbrella company salary simulator is entirely
free. It provides a real-time
estimate of your net salary, based on a full-time employed status or on the number of working days desired. The applicable employee and employer social contributions are applied according to the parameters you initially enter in our simulator.
You thus obtain a
quick, clear, and reliable result of your net salary under an umbrella company. We also send you a detailed pay slip of your simulation.
What to do after my umbrella company simulation?
Have you just completed an income simulation under an umbrella company? If you have any questions, don't hesitate to contact our advisors. Responsive and attentive, they will guide you towards the umbrella company solution best suited to your professional project. Your personal advisor provides simple, clear, and precise answers.
Calculate and estimate your salary under an umbrella company
How to calculate your salary under an umbrella company?
Working on assignments under an umbrella company is not always full-time. It is therefore necessary to rely on the Average Daily Rate, and multiply it by the number of days worked, to begin calculating the net salary at the end of the month. In an umbrella company, the net salary obtained corresponds to almost half of the invoiced turnover (between 51% and 60% of your billing) after
the application of various social charges:
- Management fees
- Any applicable tax and parafiscal charges
- Employer (43%) and employee (22%) contributions necessary to finance your social protection under an umbrella company.
OpenWork sets its management fee rate at 5% of turnover with no hidden fees. This management fee rate can decrease in case of co-optation for us. At OpenWork, Professional Civil Liability and C3S are offered.
What is the minimum salary under an umbrella company?
Unlike the micro-entrepreneur status, there is no turnover ceiling excluding tax under an umbrella company. However, the collective agreement for umbrella companies, adopted in March 2017, imposes a mandatory
minimum salary for consultants working under an umbrella company. This
minimum salary corresponds to an ADR of about €170 excluding tax / day.
The minimum gross salary amount corresponds to:
- 70% of the 2017 Social Security ceiling for a junior consultant, i.e. €2,288.30 gross.
- 75% of the 2017 Social Security ceiling for a senior consultant, i.e. €2,451.65 gross.
- 85% of the 2017 Social Security ceiling in case of day package, i.e. €2,778.65 gross.
This gross salary includes the base salary, paid leave allowances, and the business provider bonus. However, it is necessary to add 10% of the gross salary in financial reserve to have the minimum remuneration defined by the collective agreement for umbrella companies.
How to estimate the amount to invoice my clients?
The
Average Daily Rate, or
ADR, indicates the amount of the daily rate set by the employed consultant for their service. But calculating your salary is not just about dividing your turnover by the number of days worked in the month.
To
calculate your ADR, you must first evaluate the
market price and align yourself to find assignments. To do this, you can call on the network of partner professionals and/or research on assignment search platforms to compare rates practiced on profiles similar to yours. You can also inquire with acquaintances who have a similar profile.
Keep in mind that your
net salary represents 40 to 60% of the amount of your gross turnover excluding tax, after deduction of various charges (commission and social contributions). It is therefore advisable to negotiate your services at a rate twice as high as the expected salary, to reach the net salary you desire.
The price negotiated per day of assignment must cover, among other things, your conventional salary, end-of-contract operations, client prospecting, and various expenses incurred by the consultant to develop their activity (transport, office equipment...).
To determine your ADR, you must take into account:
- Your experience: more expertise leads to higher pricing.
- Competition: a highly competitive market restricts the negotiation of your rates.
- Operating costs (so-called rechargeable): certain costs related to the exercise of your assignment can be covered by the client company.
To help you calculate the daily pricing base and your
income, use OpenWork's net salary
simulation tool for umbrella companies.
When will I receive my salary?
The payment terms for your remuneration may vary from one umbrella company to another. Here are the different possible options.
Payment of the full amount of your invoice regardless of client payment
This is the most
advantageous solution for the employed consultant and it's the solution chosen by OpenWork. In this scenario, the umbrella company pays the net salary corresponding to the entire
billing for the past month regardless of the payment from the client company. OpenWork pays you your net salary on the
5th of the month, regardless of client payment,
including professional expenses!
Payment at the conventional minimum and supplement upon payment by the client
The collective agreement for umbrella companies establishes a
minimum remuneration to practice in an umbrella company at 70% of the social security ceiling for a junior consultant, and 75% for a senior consultant for a TAM status; for an EXECUTIVE status, this minimum is at 85%.
The employed consultant can therefore claim this minimum remuneration, regardless of client payment. Most umbrella companies choose this solution. They pay remuneration equal to the
conventional minimum at the beginning of the month following the issuance of the invoice. Then, they pay a supplement upon full payment of the invoice by the client.
Which employment contract to choose in an umbrella company?
The fixed-term contract in an umbrella company
The
fixed-term contract of an umbrella company can reach a maximum duration of
18 months (renewable twice). This type of contract is often recommended for consultants whose assignments are occasional or for those who are new to umbrella companies (due to lack of visibility of their activity). The fixed-term contract in an umbrella company gives you direct rights to unemployment benefits.
Currently, OpenWork offers a maximum of fixed-term employment contracts in umbrella companies for its
simplicity of implementation and termination. The fixed-term mission contract starts when the mission begins and ends at the same time as the mission to be carried out. This avoids contract renewal (limited to 2 times) and opens your
unemployment rights as soon as the contract ends.
The permanent contract in an umbrella company
The
permanent contract in an umbrella company is for an indefinite period (by definition), but within the limit of a mission whose duration does not exceed 36 months. This contract is more often offered to well-established freelancers (whose activity benefits from good visibility), for long missions, if you wish to acquire a credit (housing or tax) or for administrative necessities (Visa renewal, etc.).
The end or termination of a service contract does not result in the end of the permanent contract in an umbrella company with the umbrella company.
What to do if the client does not pay for their service?
In an umbrella company, the umbrella company collects the amount of the billing to pay it back to you as salary. It assists you in resolving
unpaid invoices.
First, your umbrella company will advise you to
contact your client to inform them that the invoiced mission has not yet been paid. It may be a simple oversight on the part of your client. You can make this reminder by email or by mail.
If the invoice remains unpaid, despite your reminder, then the umbrella company takes over. When a delay in payment of invoice(s) is detected by your umbrella company, it informs you and finds a quick solution to obtain their payment(s) as soon as possible. A
new deadline is defined by the legal department of your umbrella company. And if the payment delay persists, a
recovery procedure is put in place.
The umbrella company allows for significant reminder work. In cases where the umbrella company is powerless, it will contact you to implement joint actions and resolve the still unpaid invoices.
How to optimize your income in an umbrella company?
In an umbrella company, your net salary corresponds on average to 50% of your billing, after deduction of management fees, social contributions, and other expenses invoiced by your umbrella company (CVAE, professional liability, C3S...). While the umbrella company has a cost, it nevertheless offers the possibility to
optimize income and therefore reduce this cost. At OpenWork, we have a unique offer: Professional Civil Liability and C3S are free.
What do the management fees of umbrella companies include?
The umbrella company allows the independent freelancer to benefit from the security of employee status and complete handling of administrative procedures. In return, the umbrella company deducts a management commission on your turnover excluding tax.
What the management commission includes
The ordinance of April 2, 2015, requires umbrella companies to exclusively exercise the umbrella company activity. They therefore rely entirely on the commission paid back by their employed consultants.
This
management commission covers the financing of operating and personnel expenses of the umbrella company, but also the services offered to employed consultants (implementation of the umbrella company agreement, establishment of the service contract and employment contract in umbrella company, provident fund, retirement, health insurance, billing, etc.).
What commission rate to accept?
The offer of management commissions varies between
3 and 15% of turnover excluding tax. Some umbrella companies offer a
degressive commission rate, depending on the amount of turnover. Finally, beware of commission rates that are too low, they can sometimes hide an overcharging of certain tax and parafiscal deductions.
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