The VDI status offers many advantages, including the ability to be independent while still benefiting from social security coverage. But do the contributions paid by a VDI entitle you to a pension? Find out how to manage your retirement as a VDI.
The VDI status
What is the status of a direct sales representative? How is a VDI paid?
The status and remuneration of a VDI depend on the VDI contract they sign with the company they represent. Two statuses are commonly used to define the VDI’s activity:
- The status of mandataire VDI: their remuneration is the sum of commissions paid and set by the company based on the sales of products or services made (the rate applies to the VDI’s turnover and is generally between 20% and 35%).
- The status of buyer-reseller: they set their own sales prices for products. The margin they make on their sales then defines their remuneration.
What are the obligations for VDIs?
The VDI status simplifies formalities. However, the profession of independent direct sales representative is highly regulated, so the VDI has a few obligations:
- Declaration of activity at the start;
- Declaration of income;
Registration is required if the legal turnover threshold is exceeded for 3 consecutive years. Registration with a professional register is then done with the RSAC (Special Register of Commercial Agents) for mandataire sellers and with the RSC (Trade and Companies Register) for buyer-resellers.
Good to know: combining VDI and civil servant status is possible under certain conditions, allowing a public sector employee to benefit from the advantages of being an independent direct sales representative.
Note: a non-registered VDI is considered an employee and falls under the Social Security system. As soon as they are registered with a professional register, they are affiliated with the general scheme for self-employed workers (TNS).
What contributions for the VDI?
Whether you work as a VDI full-time or as a side activity, the VDI status entitles you to almost the same benefits as an employee.
Now a profession in its own right, the VDI activity offers social security coverage thanks to the contributions paid: health insurance (illness, maternity, etc.), pension insurance (retirement), family allowances, work accidents, CSG, and more.
However, the VDI status does not entitle you to unemployment benefits in the event of stopping the activity. Indeed, the independent direct sales representative does not contribute to the unemployment insurance scheme.
Similarly, the VDI does not pay contributions to a supplementary pension fund.
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VDI contribution rates
VDI contribution rates follow a progressive scale, increasing with income (gross per quarter):
- A VDI whose income is less than €606 gross per quarter benefits from an exemption from contributions;
- A VDI who receives a gross quarterly remuneration between €606 and €1,616 pays flat-rate contributions;
- For income between €1,616 and €5,454 gross per quarter, contributions are calculated on the basis of a flat-rate base by brackets, with the application of standard rates;
- With remuneration equal to or greater than €5,454: contributions are calculated according to standard law, based on the actual income of the direct sales representative.
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Validation of quarters for pension rights
The VDI therefore acquires pension rights based on their income.
To validate a quarter of pension rights, you must reach a minimum remuneration of 150 times the hourly minimum wage (SMIC).
That is, an income of at least €1,690.50 per quarter to validate 1 quarter of pension rights (or €6,762 for the year to validate 4 quarters of pension rights).
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