How social insurance works

Entrepreneurs need to get national insurance for themselves and any employees.

As far as social insurance is concerned, what is mandatory for the entrepreneur and what is not depends on the legal structure chosen. As a general rule, founders of sole proprietorships, limited partnerships and general partnerships have self-employed status. They are largely responsible for their own pension schemes.

Founders of limited companies and limited liability companies are both entrepreneurs and employees. So they have the status of a worker carrying on a dependent activity according to social security schemes. In this case, most types of insurance are mandatory.

The system of public, occupational and private pension funds based on the principle of three pillars is deemed to ensure security upon retirement, in the event of disability and in the event of death, and to guarantee a decent standard of living, once contributors have stopped working.



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Last modification 13.04.2022

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