Employee Savings Schemes in French Payroll 2026: Complete Employer Guide
Introduction: employee savings as a retention and social-cost optimisation tool
“Épargne salariale” (employee savings) covers all the schemes that allow employees to share in the company’s results and 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 security and tax regime, the terms of which are set out in 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 CFOs who wish to master the payroll treatment of employee savings: exemption conditions, the social package (“forfait social”) according to headcount, CSG/CRDS, employer matching contributions, the PPV, and DSN reporting.
Intéressement: conditions, ceilings and social regime
Definition and set-up 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 set up by a company agreement (or, in companies with fewer than 50 employees, by a unilateral employer decision since the PACTE Act) for a term of 1 to 5 years. The calculation formula must be uncertain (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 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.
Social regime of intéressement
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: 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: 0.50% on 100% of the amount
- Social package (“forfait social”): variable according to headcount (see the dedicated section)
Important: 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
- 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)
Participation: statutory formula, allocation and social regime
Obligation and statutory formula
Participation is mandatory in companies with at least 50 employees that have generated sufficient net taxable profit. The statutory 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 = value added
The participation agreement may provide for a derogating formula, provided it is at least as favourable as the statutory formula.
Allocation among employees
Allocation may be uniform, proportional to salary, proportional to the length of presence, or a combination of these criteria. The individual ceiling is the same as for intéressement: 75% of PASS = €36,045 in 2026.
Social regime of participation
Participation follows the same social regime as intéressement:
- Exemption from social security contributions
- CSG 9.20% + CRDS 0.50% with no allowance
- Social package according to headcount
Lock-in of the amounts
Amounts from participation are locked in 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 amounts 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 allowing employees to build up a securities portfolio with the company’s assistance. Amounts paid in (intéressement, participation, voluntary contributions) are locked in for at least 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 amounts are locked in until the employee’s retirement, with limited early-release cases (purchase of the main residence, life accidents).
Employer matching contribution
The matching contribution (“abondement”) is the amount paid by the employer in addition to the employee’s contributions. It is exempt from social security contributions within the following limits:
- PEE: maximum matching of 8% of 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 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%) with no allowance, as well as to the social package.
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 €3,844.80 limit)
- CSG on matching: €2,000 × 9.20% = €184
- CRDS on matching: €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 is an employer contribution levied on employee-savings amounts that are exempt from social security contributions. Its standard rate is 20%. It applies in particular to participation, to intéressement (in companies with 250 employees or more) and to the matching contribution.
Exemptions according to headcount
| Headcount | Intéressement | Participation | PEE matching | PERCO/PERECO matching |
|---|---|---|---|---|
| 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 over | 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 PERECO matching may be reduced to 16% (instead of 20%) under certain conditions
Value-Sharing Bonus (PPV) in 2026
Payment conditions
The Value-Sharing Bonus (“Prime de Partage de la Valeur” – PPV, formerly the Macron/PEPA bonus) 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 a 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).
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 minimum wage (SMIC): full exemption, including from CSG/CRDS and income tax (scheme 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 tax (PAS)
- Net before withholding tax: €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, matching, 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 employment income in the strict sense.
Applicable rates
- Deductible CSG: 6.80% (deductible from taxable income if the amounts are taxable)
- Non-deductible CSG: 2.40%
- CRDS: 0.50% (non-deductible)
- Total: 9.70%
Payroll treatment and DSN reporting
Pay-slip lines
Employee savings appear on the pay slip 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 amounts are reported in the DSN (the French unified social declaration) 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
- Assessable base block (S21.G00.78): specific bases for the social package
The social package is reported with the CTP (personnel type code) 012 for the 20% rate. The employer must ensure consistency between the amounts reported and the amounts 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 for as long as the amounts remain locked in).
Points of vigilance for the payroll manager
Compliance with ceilings
Exceeding the exemption ceilings triggers the reintegration of the excess portion into the contribution base. The manager must track annual cumulative amounts 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 that deadline, late-payment interest is owed to employees.
Informing employees
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), an employee may request immediate payment of all or part of their participation. In that case, the amounts 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 to make the payment.
Is the social package due on the PPV?
No. The PPV is not subject to the social package, whatever 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, matching).
How should you treat an employee who leaves the company before the intéressement payment?
An employee who leaves the company before the intéressement payment date retains their rights. The company must pay their share of 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 amounts are deposited with the Caisse des dépôts et consignations.
Can the matching contribution differ according to employee categories?
No. The matching contribution must be uniform for all employees. The matching rate and ceiling must be identical, in accordance with the collective nature of savings plans. However, a specific matching contribution may be provided for voluntary contributions on the one hand and for contributions 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 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.