The new French social security decree and what it means for the yachting industry

The decree

As most of the yachting industry are now aware, the French government enacted a decree earlier this year that states a new requirement for social security payments for all non-French seafarers (crew) based in France unless they are already paying for social security (national insurance) in another EU member state, or in any other national state that has an existing bilateral social security treaty with France.

This announcement of the decree has led to a lot of uncertainty which the PYA has been working hard to resolve for its members.

The tri-association seminar, 17th May

Following on from the first extremely informative seminar organised by the PYA to provide clarity to this subject in April, on Wednesday 17th May, the PYA, along with the yachting associations GEPY and Italian Yacht Masters organised an invited panel of experts from the French government, ENIM and the University of Nantes to address the yachting industry about the French Social Security decree at the Yacht Club de Monaco's Captains' Forum.

The aim of the seminar was to seek explanation of the background to this new law, the legal application and tax implications for seafarers and owners in the large commercial yacht sector based and/or tax resident in France or French Territories, and to test the practical aspects of implementing the decree with the invited panellists.

The seminar was attended by around 400 Captains, crew and shore-based professionals, it was clear that this is an important subject the yachting industry is universally passionate about.  It was also clear that there had been poor consultation with the maritime industry prior to the decree being issued. The power of the collective force who were present on the day will make it hard for the government NOT to consult with the yachting sector going forward.

The Monaco Yacht Club provided the perfect venue to host the event, and generously welcomed guests to a drinks reception on the stunning terrace after the seminar.

You can download the key documents that have come out of this seminar below:

 

 

Going forward

The three Crew Associations (GEPY, PYA, IYM) intend to offer their services to ENIM to assist them in gaining better understanding of employment in the large yacht sector.  It is hoped that this will allow some flexibility in the application and management of seafarer social charges in the future.

The PYA and GEPY in partnership with other French associations in the super yacht sector have written a joint letter to both ENIM and Maritime Affaires some weeks ago protesting on the application of this decree to yachting.  Separately several owners' associations and organisations have instructed legal action challenging against its implementation on the grounds of excessive powers. 

Further information will follow to members of the associations as soon as it is known. 

DISCLAIMER

Reader please note that the documents above have been compiled from various sources and therefore are non attributable to either the authors, any of the named individuals, the French authorities and/or any other third parties.  The views represented are aimed at providing feedback information to the members of PYA, GEPY and IYM and should be treated as advisory information only.  PYA, GEPY and IYM do not accept responsibility for any inaccuracies contained in the text or in the accompanying table of Questions and Answers.