French Labour Law

Employee Savings Schemes in French Payroll 2026: A Complete Employer Guide

DAIRIA Law · 2026-08-04 · 11 min

Employee Savings Schemes in French Payroll 2026: A Complete Employer Guide

Introduction: Employee Savings as a Retention and Social-Cost Optimisation Tool

Employee savings (épargne salariale) covers all the schemes that allow employers to associate employees with company results and to help them build up medium- or long-term savings: profit-sharing bonuses (intéressement), statutory profit-sharing (participation), company savings plans (plan d’épargne entreprise, PEE), collective retirement savings plans (PERCO/PERECO), and, more recently, the Value-Sharing Bonus (Prime de Partage de la Valeur, 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 CFOs wishing to master the payroll processing of employee savings: exemption conditions, the forfait social (employer social package contribution) according to headcount, CSG/CRDS, employer matching contributions, the PPV, and reporting in the DSN (Déclaration Sociale Nominative, the French monthly payroll declaration).

Profit-Sharing Bonus (Intéressement): Conditions, Caps and Social Regime

Definition and Conditions of Implementation

The profit-sharing bonus (intéressement) is an optional scheme allowing the employer to pay employees a collective bonus linked to the company’s results or performance. It is implemented by a 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, possibly subject to a length-of-service condition of no more than 3 months).

Payment Caps

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

Social Regime of the Intéressement

The intéressement is exempt from social security contributions (excluded from the base defined in 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% deduction, because the professional-expenses deduction does not apply to employee savings income)
  • CRDS: 0.50% on 100% of the amount
  • Forfait social: variable according to headcount (see dedicated section)

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

Worked Example

An employee receives an intéressement bonus 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)

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

RSP = ½ × (B – 5% C) × S / VA

Where:

  • B = net taxable profit
  • C = shareholders’ 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 legal formula.

Distribution Among Employees

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

Social Regime of the Participation

Participation follows the same social regime as the intéressement:

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

Lock-Up of the Sums

Sums arising from participation are locked in for 5 years (PEE) or until retirement (PERCO/PERECO), except in cases of early release (marriage, birth of a 3rd child, purchase of a main residence, divorce, over-indebtedness, etc.). The employee may request immediate payment of the participation, but in that case the sums are subject to income tax.

PEE, PERCO and PERECO: Savings Plans and Employer Matching

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 in for a minimum of 5 years. The company may match 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 in until the employee’s retirement, with limited cases of early release (purchase of the main residence, life accidents).

Employer Matching Contribution

The matching contribution (abondement) is the amount paid by the employer to supplement the employee’s contributions. It is exempt from social security contributions within the following limits:

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

The matching contribution is subject to CSG (9.20%) and CRDS (0.50%) without deduction, as well as to the forfait social.

Example: PEE Matching

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

  • Employer matching: €1,000 × 200% = €2,000 (within the limit of €3,844.80)
  • CSG on matching: €2,000 × 9.20% = €184
  • CRDS on matching: €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

Forfait Social: Rate According to Company Headcount

General Principle

The forfait social is an employer contribution based on employee savings amounts 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 matching contribution.

Exemptions According to Headcount

HeadcountIntéressementParticipationPEE MatchingPERCO/PERECO Matching
Fewer than 50 employees0%0%20%20% (or 16% PERECO)
50 to 249 employees0%20%20%20% (or 16% PERECO)
250 employees and above20%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 PERECO matching may be reduced to 16% (instead of 20%) under certain conditions

The Value-Sharing Bonus (PPV) in 2026

Payment Conditions

The Value-Sharing Bonus (Prime de Partage de la Valeur, formerly the Macron bonus/PEPA) may be paid by any employer to its employees, without any headcount condition. It is optional and may be implemented by company agreement or unilateral employer decision. The amount is at the employer’s discretion, with an exemption cap of €3,000 per employee per year (raised to €6,000 if the company has a voluntary intéressement or participation agreement).

Social Regime of the PPV in 2026

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

  • Exemption from social security contributions (within the cap)
  • 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 CSG/CRDS and income tax (scheme extended until 31 December 2026)

PPV Example

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

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

Same company, 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 withholding at source: €1,806

CSG and CRDS on Employee Savings: Specific Rules

Base Without Deduction

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

Applicable Rates

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

Payroll Processing and DSN Reporting

Payslip Lines

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

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

DSN Reporting

Employee savings amounts are reported in the DSN within 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 using 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.

Impact on Taxable Net and Social Net

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

Points of Vigilance for the Payroll Manager

Compliance with Caps

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

Payment Deadline

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

Employee Information

The employer must give each employee an individual statement summarising the sums allocated under the 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 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 notification of the entitlements. The employer then has the statutory period to make the payment.

Is the forfait social due on the PPV?

No. The PPV is not subject to the forfait social, whatever 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 classic employee savings schemes (intéressement, participation, matching contribution).

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

An employee who leaves the company before the intéressement payment date retains their entitlements. The company must pay them their share of the intéressement, calculated pro rata to their length of presence. It 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 (the French public deposits body).

Can the matching contribution differ according to employee category?

No. The matching contribution must be uniform for all employees. The matching rate and cap must be identical, in accordance with the collective nature of savings plans. However, a specific matching contribution may be provided for voluntary contributions on one hand and for contributions arising 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, within the 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.

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