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Abolition of the RSI The RSI (Regime Social des Indépendants) has faced numerous dysfunctions since its creation, when it was responsible for ensuring the social rights of around 6.6 million French people. Aware of the general dissatisfaction with the system among its beneficiaries, Emmanuel Macron’s government took the decision to abolish this unsatisfactory system. Thus, a transitional phase began on January 1, 2018, with the objective of integrating all self-employed workers into the general employee compensation system. Finally, in 2022, the social system exclusively designed for the self-employed has been completely eradicated .
The abolition of the RSI and the transition to the general regime:-
In order to facilitate this transition, the self-employed have benefited from two reductions in contributions. First of all, a reduction of 2.15 points on family contributions to compensate for the increase in the Generalized Social Contribution (CSG) for all traders, craftsmen, liberal professions and farmers. On the other hand, a reduction of 1.5 points on health contributions has been implemented, thus increasing the purchasing power of around 75% of self-employed people whose annual income does not exceed 43,000 euros.
This ambitious initiative received positive feedback from employers, who felt that a rebalancing was necessary to encourage entrepreneurship, as the RSI had proven to be a significant obstacle. Finally, in 2020, the RSI was permanently abolished, marking the end of its existence.
Reductions in contributions and benefits for the self-employed: –
The DAMY law firm , specializing in health law, reported this development on June 4, 2022, emphasizing the importance of this change for the self-employed and the entire health system. The abolition of the RSI aimed to streamline the social security system and provide a more efficient and equitable approach to social protection for all individuals in France .