How to Manage Employee Savings Plans in Payroll in 2026: A Complete Guide

Employee savings plans encompass all mechanisms that allow employers to associate employees with the company’s results and to build up savings for them in the medium or long term: profit-sharing (intéressement), mandatory profit-sharing (participation), company savings plans (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 advantageous social and tax regimes, the details of which are specified by the Official Bulletin of Social Security (BOSS, boss.gouv.fr).

This complete guide is intended for payroll managers, HR directors, and financial executives looking to master the management of employee savings in payroll: exemption conditions, social contributions based on headcount, CSG/CRDS, matching contributions, PPV, and reporting in DSN.

Definition and Implementation Conditions

Profit-sharing is an optional scheme that allows companies to pay collective bonuses to employees based on the company’s results or performance. It is implemented by a company agreement (or a unilateral decision in companies with fewer than 50 employees since the PACTE law) for a duration of 1 to 5 years. The calculation formula must be random (the payment is not guaranteed) and collective (all employees must benefit, possibly with a maximum seniority condition of 3 months).

Payment Caps

The total amount of profit-sharing cannot exceed 20% of the company’s gross payroll. The individual payment is capped at 75% of the Annual Social Security Ceiling (PASS), which amounts to 75% × 48,060 € = 36,045 € in 2026.

Profit-sharing 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 (without the 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 Contribution: variable depending on the headcount (see dedicated section)

Caution: unlike salaries, the 1.75% deduction for professional expenses does not apply to the CSG/CRDS base for profit-sharing and mandatory profit-sharing.

Numeric Example

An employee receives profit-sharing 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 Contribution (paid by the employer): 3,000 × 20% = 600 €
Net received by the employee: 3,000 – 276 – 15 = 2,709 € (if not deposited in a savings plan)

Obligation and Legal Formula

Mandatory profit-sharing applies to companies with at least 50 employees that have generated a sufficient net taxable profit. The legal formula for calculating the Special Profit-Sharing Reserve (RSP) is:

RSP = ½ × (B – 5% C) × S / VA
Where:

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

The profit-sharing agreement can provide for a derogatory formula, provided it is at least as favorable as the legal formula.

Distribution Among Employees

Distribution can be uniform, proportional to salaries, proportional to duration of presence, or a combination of these criteria. The individual cap is the same as for profit-sharing: 75% of the PASS = 36,045 € in 2026.

Profit-sharing follows the same social regime as profit-sharing:

Exemption from social security contributions
CSG 9.20% + CRDS 0.50% without deduction
Social Contribution based on headcount

Lock-In of Funds

Funds resulting from profit-sharing are locked for 5 years (PEE) or until retirement (PERCO/PERECO), except in cases of early withdrawal (marriage, birth of a third child, acquisition of primary residence, divorce, over-indebtedness, etc.). An employee can request immediate payment of the profit-sharing, but in that case, the amounts are subject to income tax.

PEE, PERCO, and PERECO: Savings Plans and Matching Contributions

Company Savings Plan (PEE)

The PEE is a collective savings plan allowing employees to build a portfolio of securities with the company’s support. The amounts deposited (profit-sharing, mandatory profit-sharing, voluntary contributions) are locked for a minimum of 5 years. The company can provide matching contributions.

PERCO and PERECO

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

Employer Matching Contributions

The matching contribution is the employer’s contribution in addition to the employee’s deposits. It is exempt from social security contributions within the following limits:

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

Example: PEE Matching Contribution

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

Employer Matching Contribution: 1,000 × 200% = 2,000 € (within the limit of 3,844.80 €)
CSG on matching contribution: 2,000 × 9.20% = 184 €
CRDS on matching contribution: 2,000 × 0.50% = 10 €
Social Contribution (employer): 2,000 × 20% = 400 €
Net received by the employee in their PEE: 2,000 – 184 – 10 = 1,806 €

General Principle

The social contribution is an employer contribution levied on employee savings amounts exempt from social security contributions. Its standard rate is 20%. It applies notably to mandatory profit-sharing, profit-sharing (in companies with 250 or more employees), and the matching contribution.

Exemptions Based on Headcount

Employees	Profit-Sharing	Mandatory Profit-Sharing	PEE Matching Contribution	PERCO/PERECO Matching Contribution
Less than 50	0%	0%	20%	20% (or 16% PERECO)
50 to 249	0%	20%	20%	20% (or 16% PERECO)
250 and more	20%	20%	20%	20% (or 16% PERECO)

Key Points:

Companies with fewer than 50 employees are exempt from social contributions on both profit-sharing AND mandatory profit-sharing.
Companies with fewer than 250 employees are exempt from social contributions on profit-sharing only.
The social contribution on the PERECO matching contribution may be reduced to 16% (instead of 20%) under certain conditions.

Conditions for Payment

The Value Sharing Bonus (formerly Macron Bonus/PEPA) may be paid by any employer to its employees, without any headcount condition. It is optional and can be established by company agreement or unilateral employer decision. The amount is free, with an exemption threshold of 3,000 € per employee per year (increased to 6,000 € if the company has a profit-sharing or voluntary profit-sharing agreement).

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

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

PPV Example

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

PPV paid: 2,000 €
Social Security Contributions: 0 €
CSG/CRDS: 0 € (exempt < 50 employees and < 3 minimum wage)
Income Tax: 0 € (exempt)
Net received: 2,000 €

In the same company, an employee earning 6,000 € gross/month (> 3 times minimum wage):

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
Net before withholding tax: 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 (profit-sharing, mandatory profit-sharing, matching contributions, PPV) is subject to CSG and CRDS on 100% of their amount, without applying the 1.75% deduction for professional expenses. The BOSS specifies that this deduction is reserved for strictly earned income.

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

Lines on the Payroll Slip

Employee savings appear on the payroll slip for the month of payment. Specific lines include:

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

Reporting in DSN

Employee savings amounts are reported in the DSN within the following blocks:

Remuneration Block (S21.G00.51): with specific type codes (profit-sharing, mandatory profit-sharing)
Contribution Block (S21.G00.78/79/81): social contributions, CSG/CRDS
Tax Base Block (S21.G00.78): specific bases for the social contribution

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

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

Key Considerations for the Payroll Manager

Compliance with Caps

Exceeding the exemption caps will lead to the reintegration of the excess fraction into the assessment for contributions. The manager must monitor annual totals by employee.

Payment Deadline

Profit-sharing and mandatory profit-sharing must be paid or allocated no later than the last day of the 5th month following the end of the financial year (i.e., May 31 for a year-end of December 31). After this deadline, delayed interest is owed to employees.

Employee Information

The employer must provide each employee with an individual statement summarizing the amounts allocated for profit-sharing and/or mandatory profit-sharing, the investment options, and deadlines for exercising their choice (15 days from notification).

FAQ: Employee Savings in Payroll

Yes, since the PACTE law (2019), employees can request immediate payment of all or part of their mandatory profit-sharing. In this case, the amounts are subject to income tax (integrated into taxable net income). The request must be made within 15 days of notification of rights. The employer then has the legal timeframe to make the payment.

No. The PPV is not subject to the social contribution, regardless of the company’s headcount. It is exempt from social security contributions and, in some cases, from CSG/CRDS. The social contribution only applies to traditional employee savings schemes (profit-sharing, mandatory profit-sharing, matching contributions).

An employee who leaves the company before the date of profit-sharing payment retains their rights. The company must pay them their share of the profit-sharing, calculated pro rata to their duration of employment. Payment is made to the last known address or the bank account provided. If the employee cannot be found, the amounts are held by the Deposit and Consignation Fund.

Can the matching contribution vary by employee category?

No, the matching contribution must be uniform for all employees. The rate and cap of the matching contribution must be the same, in accordance with the collective nature of savings plans. However, a specific matching contribution can be stipulated for voluntary contributions on one side and for contributions resulting from profit-sharing/mandatory profit-sharing on the other.

Can the PPV be paid in installments?

Yes, since the law of November 29, 2023, the PPV can be paid in one or multiple installments within the limit of one payment per quarter, during the calendar year. This flexibility allows the employer to spread the cash flow effort while maintaining the benefit of the exemption.