Farm income is determined as a flat-rate, based on standard gross margins, by the Rural Economy Department (Service d'économie rurale - SER) and the Wine Institute (Institut viti-vinicole - IVV). Certain business expenses may also be deducted from this farm income to give the contribution base for calculating the farmers' social security contributions.
Farm income
The SER and the IVV conduct an annual census to determine the business income of each farm. This farm assessment is notified to the farmers and the Social Security Centre (Centre commun de la sécurité sociale - CCSS).
The CCSS then sends a form called 'Declaration of operating expenses' to the farms, in which they can declare their deductible operating expenses.
After deduction of the declared expenses, the CCSS sends the farm a letter on which the itemized charges in question are shown as well as the net operating income that has been obtained. This net income then forms the contribution base for calculating the farm's social security contributions.
If the calculated contribution base is contested, the farmer may submit a balance sheet for their farm as a profit and loss statement. The result on the balance sheet provided must differ by at least 10 % from the CCSS result in order for the contribution base to be modified accordingly. These accounting documents must reach the CCSS before the end of the fiscal year following the year in question.
If the balance sheet is accepted, the farm manager is informed of the revaluation of their social security contributions by letter.
Contribution base
The farmer's individual contribution base is determined by dividing the net operating income by the number of self-employed farm workers (the farm manager, assistants and partners) working for the farm operation.
The contribution base has a minimum base (the minimum wage, reduced to one third of the minimum wage if the person in question is also affiliated for another professional activity) and contribution threshold (5 times the minimum wage) for health, pension and work accident coverage. There is no minimum or maximum base for the calculation of dependency insurance.
Details from the preceding fiscal year are taken into account when calculating contributions for the current year.
The contribution base is the basis for calculating social security benefits.
Contributions
The farm manager is responsible for paying the social security contributions for his affiliation and that of his assistants and partners.
The different contribution rates can be consulted here.
Multiple income sources
If the farmer has more than one occupation that is subject to insurance, all professional income is subject to contributions. If the total income exceeds the threshold, the farmer is entitled, upon request, to a reimbursement of the overpaid contributions.