Portage Glossary
Essential vocabulary to understand everything about salary portage, explained simply.
A
- Activity Account
- Virtual account managed by the portage company that tracks all the consultant's financial flows: invoicing, management fees, salaries paid, social charges, professional expenses.
- ADR (Average Daily Rate)
- Rate charged by the consultant to their client for one day of work. This is the basis for calculating revenue.
B
- Business Development Fee
- Commission of 5% of revenue paid to the consultant to compensate their commercial work in finding and negotiating missions.
C
- Client Company
- Company that uses the services of a portaged consultant. It signs a service contract with the portage company.
- Conventional Salary
- Minimum salary guaranteed by the collective bargaining agreement for salary portage, below which a consultant cannot be paid.
E
- Employment Contract
- Contract signed between the portaged consultant and the portage company. Can be fixed-term (CDD) or permanent (CDI).
F
- Financial Guarantee
- Mandatory bank guarantee for portage companies, guaranteeing the payment of salaries and social charges in case of company failure.
- Financial Reserve
- Amount provisioned in the consultant's activity account (10% of base salary) to compensate for periods between contracts (without missions).
G
- Gross Salary
- Salary before deduction of employee social charges. Basis for calculating social contributions.
I
- Inter-contract Period
- Period between two missions during which the consultant is not on assignment but remains employed by the portage company.
M
- Management Fees
- Percentage of revenue taken by the portage company to cover administrative, accounting, and legal services (typically between 5% and 10%).
N
- Net Salary
- Amount actually received by the consultant after deduction of all social charges and taxes. Typically 45-50% of revenue.
P
- PEPS
- Union of Employment Professionals in Salary Portage, the main representative organization of the sector in France.
- PEPS Label
- Certification issued by the PEPS union guaranteeing that the portage company respects a code of ethics and strict financial security criteria.
- Portage Agreement
- Commercial contract signed between the portage company, the consultant, and the client company, defining the terms of the mission (duration, rate, scope).
- Portaged Employee
- Independent consultant who has chosen salary portage status. They have employee status while maintaining their commercial autonomy.
- Professional Expenses
- Expenses incurred by the consultant for their activity (travel, meals, equipment) that can be reimbursed without social charges upon presentation of receipts.
- Professional Liability Insurance
- Mandatory insurance taken out by the portage company that covers damages the consultant could cause to their client during their mission.
S
- Service Contract
- Commercial contract between the portage company and the client company defining the services to be provided by the consultant.
U
- Umbrella Company
- UK equivalent term for salary portage. A company that acts as an employer for independent contractors, handling invoicing and payroll.