Certificate of Coverage — Social Security cost protection for overseas transferees

Many companies who transfer their employees to their French affiliate for a limited period (up to five years), obtain from the U.S. Social Security Administration, a “Certificate of Coverage”, which is issued pursuant to the US-France Social Security Teaty.  The Certificate of Coverage allows the employee to remain in the U.S. Social Security system for up to five years of his overseas assignment.  This results in substantial cost saving for the employer as well as for the employee.  In such case the employee would not benefit from the French health system; hence, proof must be funished to the Social Security Administration that the employee is covered by a private or company health plan. 

N.B.  The Certificate of Coverage exempts employer and employee from contributons to French medical, maternity, famiy allowance and retirement contributions during the applicable period, but NOT from unemployment insurance contributions (ASSEDIC).         

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