French Labour Law

Employee Savings Schemes in French Payroll 2026: A Complete Guide for Employers

DAIRIA Law · Published · 11 min

Employee Savings Schemes in French Payroll 2026: A Complete Guide for Employers

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

Employee savings schemes (épargne salariale) cover all the mechanisms that allow employees to share in the company’s results and to 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 mechanisms benefit from a favourable social security and tax regime, the terms of which are set out in the Official Bulletin of Social Security (BOSS, boss.gouv.fr).

This complete guide is intended for payroll managers, HR directors and CFOs who wish to master the payroll treatment of employee savings schemes: exemption conditions, the social package (forfait social) according to headcount, CSG/CRDS (French social levies), employer top-up contributions (abondement), the PPV, and reporting via the DSN (the French unified social security declaration).

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

Definition and Implementation Conditions

The intéressement is an optional mechanism allowing the company to pay employees a collective bonus linked to the company’s results or performance. It is set up by a company-level agreement (or, in companies with fewer than 50 employees, by unilateral employer decision 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 maximum length-of-service condition of 3 months).

Payment Ceilings

The overall 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 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 (with no 1.75% deduction, as the deduction for professional expenses does not apply to employee savings income)
  • CRDS: 0.50% on 100% of the amount
  • Social package (forfait social): variable according to headcount (see dedicated section)

Please note: unlike salaries, the 1.75% deduction for professional expenses does not apply to the CSG/CRDS base on 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
  • Social package (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)

The participation is mandatory in companies with at least 50 employees that have generated 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 = added value

The participation agreement may provide for a derogatory formula, provided that 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 ceiling is identical to that of the intéressement: 75% of the PASS = €36,045 in 2026.

Social Regime of the Participation

The participation follows the same social regime as the intéressement:

  • Exemption from social security contributions
  • CSG 9.20% + CRDS 0.50% with no deduction
  • Social package according to headcount

Locking of the Sums

Sums arising from the 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 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 Contributions

Company Savings Plan (PEE)

The PEE is a collective savings plan allowing employees to build up a portfolio of securities 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 a main residence, life accidents).

Employer Top-Up Contribution (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 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 per employee, i.e. 16% × €48,060 = €7,689.60 in 2026, up to a limit of 300% of the employee’s contribution

The abondement is subject to CSG (9.20%) and CRDS (0.50%) with no deduction, as well as to the social package.

Example: PEE Top-Up Contribution

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 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 credited to the employee’s PEE: €2,000 – €184 – €10 = €1,806

Social Package (Forfait Social): Rates According to Company Headcount

General Principle

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

Exemptions According to Headcount

HeadcountIntéressementParticipationPEE Top-UpPERCO/PERECO Top-Up
Fewer than 50 employees0%0%20%20% (or 16% PERECO)
50 to 249 employees0%20%20%20% (or 16% PERECO)
250 employees and more20%20%20%20% (or 16% PERECO)

Key points:

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

The Value-Sharing Bonus (PPV) in 2026

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 implemented by a company agreement or by unilateral employer decision. The amount is unrestricted, with an exemption ceiling of €3,000 per employee per year (raised to €6,000 if the company has a voluntary intéressement or participation agreement in place).

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 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 SMIC (minimum wage): full exemption including CSG/CRDS and income tax (a mechanism extended until 31 December 2026)

PPV Example

Company with 30 employees, 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 for < 50 employees and < 3 SMIC)
  • Income tax: €0 (exemption)
  • Net received: €2,000

Same company, 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 Deduction

Unlike salaries (CSG/CRDS base = 98.25% of gross), employee savings income (intéressement, participation, abondement, PPV) is subject to CSG and CRDS on 100% of its amount, without application of the 1.75% deduction for professional expenses. 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 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 paid or allocated to the savings plan

DSN Reporting

Employee savings sums are reported in the DSN under 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
  • Assessable base block (S21.G00.78): specific bases for the social package

The social package is reported under 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 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 for as long as the sums remain locked).

Points of Vigilance for the Payroll Manager

Compliance With Ceilings

Exceeding the exemption ceilings triggers reinstatement of the excess portion into the contribution base. The manager must monitor annual cumulative amounts 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-end of 31 December). After this deadline, late-payment interest is due to the employees.

Employee Information

The employer must provide each employee with an individual statement summarising the sums allocated under the intéressement and/or the 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), an 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 the notification of entitlements. The employer then has the legal deadline to make the payment.

Is the social package due on the PPV?

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

How should an employee who leaves the company before the intéressement is paid be treated?

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

Can the top-up contribution differ according to categories of employees?

No. The abondement must be uniform for all employees. The top-up rate and ceiling 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 arising from the 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 out the cash-flow effort while retaining the benefit of the exemption.

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