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

Employee savings (épargne salariale) covers all the schemes that allow companies to associate employees with the company’s results and to build up medium- or long-term savings for them: profit-sharing based on performance (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 specified by the Official Social Security Bulletin (Bulletin Officiel de la Sécurité Sociale – BOSS, boss.gouv.fr).

This complete guide is intended for payroll managers, HR directors and finance directors who wish to master the payroll treatment of employee savings: exemption conditions, the social package (forfait social) based on headcount, CSG/CRDS, the employer top-up (abondement), the PPV, and reporting via the DSN (the standardised social security return).

Definition and Implementation Conditions

Intéressement is an optional scheme allowing a company 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 term 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 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 – PASS), i.e. 75% × €48,060 = €36,045 in 2026.

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

CSG (general social contribution): 9.20% calculated on 100% of the amount (with no 1.75% allowance, since the professional-expenses allowance does not apply to employee-savings income)
CRDS (social debt repayment contribution): 0.50% on 100% of the amount
Social package (forfait social): variable depending on headcount (see dedicated section)

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

Worked Example

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

Social security contributions: €0 (exempt)
CSG: €3,000 × 9.20% = €276
CRDS: €3,000 × 0.50% = €15
Social package (payable 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 Legal Formula

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 = equity
S = gross payroll
VA = added value

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

Allocation Among Employees

Allocation may be uniform, proportional to salary, proportional to time of presence, or a combination of these criteria. The individual cap is identical to that of 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% with no allowance
Social package depending on headcount

Lock-Up of the Amounts

Amounts arising from participation are locked up for 5 years (PEE) or until retirement (PERCO/PERECO), except in cases of early release (marriage, birth of a 3rd child, purchase of a principal residence, divorce, over-indebtedness, etc.). The employee may request immediate payment of participation, but in that case the amounts 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 a securities portfolio with the company’s help. The amounts paid in (intéressement, participation, voluntary contributions) are locked up for at least 5 years. The company may top up (abonder) 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 amounts are locked up until the employee’s retirement, with limited early-release cases (purchase of the principal residence, life accidents).

Employer Top-Up (Abondement)

The 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, capped at 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, capped at 300% of the employee’s contribution

The top-up is subject to CSG (9.20%) and CRDS (0.50%) with no allowance, as well as to the social package.

Example: PEE Top-Up

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

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

General Principle

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

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

Payment Conditions

The Value-Sharing Bonus (Prime de Partage de la Valeur – PPV, formerly the Macron bonus/PEPA) may be paid by any employer to its employees, with no headcount condition. It is optional and may be implemented by company agreement or by unilateral decision of the employer. The amount is unrestricted, with an exemption cap of €3,000 per employee per year (raised to €6,000 if the company has an intéressement or voluntary participation agreement).

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 (this measure has been extended until 31 December 2026)

PPV Example

A company with 30 employees, an employee earning €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, an employee earning €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: €1,806

CSG and CRDS on Employee Savings: Specific Rules

Base With No 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, with no application of the 1.75% professional-expenses allowance. The BOSS specifies that this allowance is reserved for earned income in the strict sense.

Applicable Rates

Deductible CSG: 6.80% (deductible from taxable income where the amounts 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 the intéressement/participation/PPV
Deductible and non-deductible CSG
CRDS
Net amount paid or allocated to the savings plan

DSN Reporting

Employee-savings amounts 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): social package, CSG/CRDS
Assessed base block (S21.G00.78): specific bases for the social package

The social package is reported with personnel type code (CTP) 012 for the 20% rate. The employer must ensure consistency between the amounts reported and the amounts actually paid or allocated.

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

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 payroll manager must track 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 close of the financial year (i.e. 31 May for a financial year ending 31 December). After this deadline, default interest is owed to the employees.

Employee Information

The employer must provide each employee with an individual statement summarising the amounts allocated 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 immediate payment of all or part of their participation. In this case, the amounts are subject to income tax (included in taxable net pay). The request must be made within 15 days following notification of the entitlements. The employer then has the legal deadline to make the payment.

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

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 intéressement, calculated pro rata to their time of presence. Payment is sent to the last known address or to the bank account provided. If the employee cannot be located, the amounts are deposited with the Caisse des dépôts et consignations (the state deposits fund).

Can the top-up differ between categories of employees?

No, the top-up must be uniform for all employees. The rate and the top-up cap must be identical, in accordance with the principle of the collective nature of savings plans. However, a specific top-up 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 more instalments, up to one payment per quarter, during the calendar year. This flexibility allows the employer to spread out the cash-flow effort while retaining the benefit of the exemption.

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