Employee Savings Schemes and Payroll in France (2026): A Complete Employer’s Guide

Employee savings schemes (épargne salariale) cover all the mechanisms that allow employers to associate employees with the company’s results and to help them build up medium- or long-term savings: profit-sharing based on performance (intéressement), statutory profit-sharing (participation), company savings plans (plan d’épargne entreprise, or PEE), collective retirement savings plans (PERCO/PERECO), and, more recently, the Value-Sharing Bonus (Prime de Partage de la Valeur, or PPV). In 2026, these schemes benefit from a favourable social and tax regime, the terms of which are set out by the Official Social Security Bulletin (BOSS, boss.gouv.fr).

This complete guide is intended for payroll managers, HR directors and finance directors who wish to master the treatment of employee savings schemes in payroll: exemption conditions, the forfait social (a specific employer social contribution) according to headcount, CSG/CRDS, employer top-ups, the PPV, and DSN reporting.

Definition and Conditions for Implementation

Intéressement is an optional scheme allowing the employer to pay employees a collective bonus linked to the company’s results or performance. It is set up by company agreement (or by unilateral decision in companies with fewer than 50 employees, since the PACTE Act) for a period of 1 to 5 years. The calculation formula must be random (payment is not guaranteed) and collective (all employees must benefit, potentially subject to a length-of-service condition of no more than 3 months).

Payment Ceilings

The overall amount of intéressement may not exceed 20% of the company’s gross payroll. The individual amount is capped at 75% of the Annual Social Security Ceiling (Plafond Annuel de la Sécurité Sociale, or PASS), i.e. 75% × €48,060 = €36,045 in 2026.

Intéressement is exempt from social security contributions (excluded from the assessment base under Article L.242-1 of the French Social Security Code), in accordance with the BOSS. However, it remains subject to:

CSG: 9.20% calculated on 100% of the amount (without the 1.75% allowance, since the professional-expenses allowance does not apply to employee savings income)
CRDS: 0.50% on 100% of the amount
Forfait social: variable according to headcount (see the dedicated section)

Note: unlike salaries, the 1.75% professional-expenses allowance does not apply to the CSG/CRDS base on intéressement and participation.

Worked Example

An employee receives intéressement of €3,000 in a company with 200 employees:

Social security contributions: €0 (exempt)
CSG: 3,000 × 9.20% = €276
CRDS: 3,000 × 0.50% = €15
Forfait social (borne by the employer): 3,000 × 20% = €600
Net received by the employee: 3,000 – 276 – 15 = €2,709 (if not invested in a savings plan)

Obligation and Statutory Formula

Participation is mandatory in companies with at least 50 employees that have generated a sufficient net taxable profit. The statutory formula for calculating the special profit-sharing reserve (réserve spéciale de participation, or RSP) is:

RSP = ½ × (B – 5% C) × S / VA

Where:

B = net taxable profit
C = equity
S = gross payroll
VA = value added

The participation agreement may provide for a derogatory formula, provided it is at least as favourable as the statutory formula.

Distribution Among Employees

Distribution may be uniform, proportional to salary, proportional to length of presence, or a combination of these criteria. The individual ceiling is identical to that for intéressement: 75% of the PASS = €36,045 in 2026.

Participation follows the same social regime as intéressement:

Exemption from social security contributions
CSG 9.20% + CRDS 0.50% without allowance
Forfait social according to headcount

Locking of the Sums

Sums resulting from participation are locked for 5 years (PEE) or until retirement (PERCO/PERECO), except in cases of early release (marriage, birth of a third child, purchase of a main residence, divorce, over-indebtedness, etc.). The employee may request the immediate payment of the participation, but in that case the sums are subject to income tax.

PEE, PERCO and PERECO: Savings Plans and Employer Top-Up

Company Savings Plan (PEE)

The PEE is a collective savings plan enabling employees to build up a securities portfolio with the company’s help. The sums paid in (intéressement, participation, voluntary contributions) are locked for a minimum of 5 years. The company may top up the employee’s contributions.

PERCO and PERECO

The PERCO (Collective Retirement Savings Plan) and the PERECO (Collective Company Retirement Savings Plan, the “PACTE Act” version) are retirement-horizon plans. The sums are locked until the employee’s retirement, with limited cases of early release (purchase of the main residence, life accidents).

Employer Top-Up

The top-up (abondement) is the contribution paid by the employer in addition to the employee’s contributions. It is exempt from social security contributions within the following limits:

PEE: maximum top-up of 8% of the PASS per year and per employee, i.e. 8% × 48,060 = €3,844.80 in 2026, up to a limit of 300% of the employee’s contribution
PERCO/PERECO: maximum top-up of 16% of the PASS per year and per employee, i.e. 16% × 48,060 = €7,689.60 in 2026, up to a limit of 300% of the employee’s contribution

The top-up is subject to CSG (9.20%) and CRDS (0.50%) without allowance, as well as to the forfait social.

Example: PEE Top-Up

An employee pays €1,000 into their PEE. The company tops up at 200%:

Employer top-up: 1,000 × 200% = €2,000 (within the €3,844.80 limit)
CSG on top-up: 2,000 × 9.20% = €184
CRDS on top-up: 2,000 × 0.50% = €10
Forfait social (employer): 2,000 × 20% = €400
Net received by the employee in their PEE: 2,000 – 184 – 10 = €1,806

General Principle

The forfait social is an employer contribution assessed on employee savings sums that are exempt from social security contributions. Its standard rate is 20%. It applies in particular to participation, to intéressement (in companies with 250 or more employees) and to the top-up.

Exemptions According to Headcount

Headcount	Intéressement	Participation	PEE Top-Up	PERCO/PERECO Top-Up
Fewer than 50 employees	0%	0%	20%	20% (or 16% PERECO)
50 to 249 employees	0%	20%	20%	20% (or 16% PERECO)
250 employees and more	20%	20%	20%	20% (or 16% PERECO)

Key points:

Companies with fewer than 50 employees are exempt from the forfait social on BOTH intéressement AND participation
Companies with fewer than 250 employees are exempt from the forfait social on intéressement only
The forfait social on the PERECO top-up may be reduced to 16% (instead of 20%) under certain conditions

Payment Conditions

The Value-Sharing Bonus (formerly the “Macron bonus”/PEPA) may be paid by any employer to its employees, with no headcount condition. It is optional and may be set up by company agreement or by unilateral decision of the employer. The amount is unrestricted, with an exemption ceiling of €3,000 per employee and per year (raised to €6,000 where the company has a voluntary intéressement or participation agreement).

In 2026, the social regime of the PPV is as follows:

Exemption from social security contributions (within the ceiling)
CSG (9.20%) and CRDS (0.50%) due on 100% of the amount
Specific exemption for companies with fewer than 50 employees paying the PPV to employees earning less than 3 times the minimum wage (SMIC): full exemption, including from CSG/CRDS and income tax (a scheme extended until 31 December 2026)

PPV Example

A company with 30 employees, an employee paid €2,500 gross/month (< 3 SMIC at 1,867.02 × 3 = €5,601.06, as of 1 June 2026):

PPV paid: €2,000
Social security contributions: €0
CSG/CRDS: €0 (exemption for < 50 employees and < 3 SMIC)
Income tax: €0 (exemption)
Net received: €2,000

Same company, an employee paid €6,000 gross/month (> 3 SMIC):

PPV paid: €2,000
Social security contributions: €0
CSG: 2,000 × 9.20% = €184
CRDS: 2,000 × 0.50% = €10
Income tax: subject to withholding at source (PAS)
Net before PAS: €1,806

CSG and CRDS on Employee Savings: Specific Rules

Base Without Allowance

Unlike salaries (CSG/CRDS base = 98.25% of gross), employee savings income (intéressement, participation, top-up, PPV) is subject to CSG and CRDS on 100% of its amount, without application of the 1.75% professional-expenses allowance. The BOSS specifies that this allowance is reserved for activity income in the strict sense.

Applicable Rates

Deductible CSG: 6.80% (deductible from taxable income if the sums are taxable)
Non-deductible CSG: 2.40%
CRDS: 0.50% (non-deductible)
Total: 9.70%

Payroll Treatment and DSN Reporting

Payslip Lines

Employee savings appear on the payslip for the month of payment. The specific lines include:

Gross amount of intéressement/participation/PPV
Deductible and non-deductible CSG
CRDS
Net paid or allocated to the savings plan

DSN Reporting

Employee savings sums are reported in the DSN in the following blocks:

Remuneration block (S21.G00.51): with the specific type codes (intéressement, participation)
Contribution block (S21.G00.78/79/81): forfait social, CSG/CRDS
Assessable base block (S21.G00.78): specific bases for the forfait social

The forfait social is reported with the CTP (Personnel Type Code) 012 for the 20% rate. The employer must ensure consistency between the amounts reported and the sums actually paid or allocated.

Employee savings sums paid directly to the employee (not invested in a savings plan) are included in the taxable net. Sums allocated to a PEE, PERCO or PERECO are excluded from the taxable net (income-tax exemption as long as the sums remain locked).

Points of Vigilance for the Payroll Manager

Compliance With Ceilings

Exceeding the exemption ceilings results in the reintegration of the excess portion into the contribution base. The manager must track the annual cumulative totals per employee.

Payment Deadline

Intéressement and participation must be paid or allocated no later than the last day of the 5th month following the end of the financial year (i.e. 31 May for a financial year ending on 31 December). After this deadline, late-payment interest is owed to employees.

Employee Information

The employer must provide each employee with an individual statement summarising the sums awarded under intéressement and/or participation, the investment options, and the deadlines for exercising their choice (15 days from notification).

FAQ: Employee Savings in Payroll

Can an employee request immediate payment of their participation?

Yes. Since the PACTE Act (2019), the employee may request the immediate payment of all or part of their participation. In that case, the sums are subject to income tax (included in the taxable net). The request must be made within 15 days of the notification of entitlements. The employer then has the statutory period in which to make the payment.

No. The PPV is not subject to the forfait social, regardless of the company’s headcount. It is exempt from social security contributions and, depending on the case, from CSG/CRDS. The forfait social applies only to standard employee savings schemes (intéressement, participation, top-up).

How should an employee who leaves the company before the payment of intéressement be treated?

An employee who leaves the company before the payment date of intéressement retains their entitlements. The company must pay them their share of intéressement, calculated on a pro-rata basis of their length of presence. The payment is sent to the last known address or to the bank account provided. If the employee cannot be located, the sums are deposited with the Caisse des dépôts et consignations.

Can the top-up differ according to categories of employee?

No. The top-up must be uniform for all employees. The rate and ceiling of the top-up must be identical, in accordance with the collective nature of savings plans. However, a specific top-up may be provided for voluntary contributions on the one hand and for contributions resulting from intéressement/participation on the other.

Can the PPV be paid in several instalments?

Yes. Since the Act of 29 November 2023, the PPV may be paid in one or several instalments, up to a limit of one payment per quarter, during the calendar year. This flexibility allows the employer to spread the cash-flow effort while retaining the benefit of the exemption.

Employee Savings Schemes and Payroll in France (2026): A Complete Employer's Guide