High-income business executives and professionals face a structural paradox. The higher their income, the greater the gap between their income and the benefits provided by the mandatory social security system.
Social protection for executives requires a tailored approach. The caps inherent in basic social security systems leave a considerable gap that only appropriate supplementary solutions can fill.
A mandatory scheme unsuited to high incomes
Daily allowances are calculated using a standardized formula: 1/730th of the average annual income over the last three years. However, this amount is capped at the annual Social Security ceiling, which will be €48,060 in 2026.
Max Kakoun, founder of the firm Anavie and a specialist in executive protection for ten years, observes that this mechanism particularly penalizes professionals whose incomes far exceed this threshold.
| Annual income | Theoretical daily allowance | Capped daily allowance | Daily loss |
| €48,000 € | €65.75 | €65.75 | €0 |
| €100,000 | €136.99 | €65.75 | €71.24 |
| €200,000 | €273.97 | €65.75 | €208.22 |
| €500,000 | €684.93 | €65.75 | €619.18 |
An alarming finding: 70% of executives are poorly protected
Sector studies reveal the extent of the phenomenon. According to data published by social protection agencies, 70% of executives believe they are insufficiently covered by their basic plan.
Even more worrying is that 61% of self-employed people say they would not be able to maintain their standard of living for more than a month if they had to rely solely on compulsory benefits in the event of sick leave.
This vulnerability applies to all major risks:
- Temporary disability: daily allowances capped at €64.52 for self-employed people
- Disability: pension also calculated on a capped basis
- Death: lump sum paid to beneficiaries often insufficient to preserve family assets
Legal status and its implications
The level of protection varies depending on the legal status chosen by the manager. Two schemes coexist with distinct characteristics.
Self-employed workers (TNS):
This scheme covers sole traders, managers of single-member limited liability companies (EURL), majority managers of limited liability companies (SARL), and partners in general partnerships (SNC). Benefits remain limited despite the merger with the general scheme in 2020.
Assimilated employees:
The presidents of SAS and SASU companies and minority managers of SARL companies are covered by the general scheme. Their rights are more extensive but remain insufficient for high salaries.
The approach developed by Anavie consists of analyzing each situation before proposing solutions tailored to the manager’s status and income level.
The Madelin scheme: a tax-optimized solution
The Madelin law allows self-employed workers to deduct their supplementary pension contributions from their taxable income. In 2026, the deduction ceiling will reach approximately €11,534 for combined health and pension coverage.
The calculation formula is based on 3.75% of professional income plus 7% of the annual Social Security ceiling. This mechanism is not subject to the overall cap on tax breaks, which means it can be combined with other optimization measures.
| Component | Calculation | 2026 cap |
| Income base | 3.75% of profit | Variable |
| PASS increase | 7% × €48,060 | €3,364 |
| Overall limit | 3% × 8 × PASS | €11,534 |
Assessing the actual protection gap
The needs analysis begins with a precise calculation of the difference between mandatory benefits and the manager’s unavoidable expenses. This gap includes several components that are often underestimated.
The manager’s fixed expenses do not disappear in the event of a work stoppage:
- Employee compensation and payroll expenses
- Business and personal rent
- Real estate and business loan repayments
- Mandatory social security contributions
- Current family expenses
Research conducted by the founder of Anavie shows that the annual gap can reach tens of thousands of euros for executives whose income exceeds €150,000.
The 2026 reform: impacts to anticipate
The reform of the social security contribution base for self-employed workers, applicable from 2026, changes the rules for calculating contributions and entitlements. However, this change does not bridge the structural gap between the real needs of wealthy executives and the benefits provided.
The cap on entitlements remains the main limitation of the system. Regardless of the level of income declared above the PASS, daily allowances remain the same.
Conclusion
Social protection for high-income executives requires a rigorous complementary strategy. The gap between mandatory benefits and actual needs can jeopardize personal and professional assets in the event of health issues.
A personalized analysis of the coverage gap, coupled with tax optimization via the Madelin scheme, makes it possible to build protection tailored to the executive’s standard of living and responsibilities.
FAQ
What is the maximum daily allowance for a self-employed executive?
Daily allowances are capped at €64.52 per day for self-employed workers in 2025. This ceiling remains unchanged regardless of income above the PASS threshold.
Are supplementary insurance contributions tax deductible?
Contributions paid under a Madelin contract are deductible from taxable income, up to a limit of approximately €11,534 in 2026 for health and life insurance coverage.
Does the president of an SAS enjoy better protection than the manager of an SARL?
The president of an SAS is covered by the assimilated employee regime, with slightly more extensive rights. The majority manager of an SARL is covered by the TNS regime with more limited benefits.
How can you calculate your actual protection gap?
The gap is the difference between your fixed expenses that cannot be reduced in the event of a work stoppage and the benefits provided by the mandatory scheme. It includes professional, personal, and family expenses.
See also > Asset diversification: the key to modern wealth management
Featured photo: Getty Images/Unsplash+
