French Labour Law

How to Manage Wage Savings in Payroll in 2025: Complete Guide

DAIRIA Law · 2026-06-16 · 11 min

How to Manage Wage Savings in Payroll in 2025: Complete Guide

Introduction: Wage Savings as a Tool for Employee Retention and Social Optimization

Wage savings encompasses all mechanisms that allow employees to share in the company’s results and build savings over the medium or long term: profit-sharing (intéressement), mandatory profit-sharing (participation), employee savings plans (Plan d’Epargne Entreprise, PEE), collective retirement savings plans (Plan d’Épargne Retraite Collectif, PERCO/PERECO), and more recently, the Value Sharing Bonus (Prime de Partage de la Valeur, PPV). In 2025, these mechanisms benefit from a favorable social and fiscal regime, detailed in the Bulletin Officiel de la Sécurité Sociale (BOSS, boss.gouv.fr).

This complete guide is intended for payroll managers, HR directors, and financial directors looking to master the treatment of wage savings in payroll, including exemption conditions, social contribution rates based on employee count, CSG/CRDS, employer contributions, PPV, and reporting in DSN.

Profit-Sharing: Conditions, Limits, and Social Regime

Definition and Implementation Conditions

Profit-sharing is an optional scheme allowing the payment of a collective bonus to employees linked to the company’s results or performance. It is established by company agreement (or unilateral decision in companies with fewer than 50 employees under 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 Limits

The total amount of profit-sharing cannot exceed 20% of the company’s gross payroll. The individual amount is capped at 75% of the Annual Social Security Ceiling (PASS), that is, 75% × 47,100 € = 35,325 € in 2025.

Social Regime of Profit-Sharing

Profit-sharing is exempt from social security contributions (it is excluded from the base of 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 since the professional expenses deduction does not apply to wage savings income)
  • CRDS: 0.50% on 100% of the amount
  • Employer Contribution (Forfait Social): variable depending on employee count (see dedicated section)

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

Numerical Example

An employee receives a 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 €
  • Employer contribution (Forfait social): 3,000 × 20% = 600 €
  • Net received by the employee: 3,000 – 276 – 15 = 2,709 € (if not invested in a savings plan)

Mandatory profit-sharing is required in companies with at least 50 employees that have achieved 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 = value added

The profit-sharing agreement may 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 salary, proportional to duration of presence, or a combination of these criteria. The individual cap is identical to that of profit-sharing: 75% of the PASS = 35,325 € in 2025.

Social Regime of Mandatory Profit-Sharing

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

  • Exemption from social security contributions
  • CSG 9.20% + CRDS 0.50% without deductions
  • Employer contribution varies by company size

Blocking of Amounts

Amounts derived from mandatory profit-sharing are blocked for 5 years (PEE) or until retirement (PERCO/PERECO), except in cases of early release (marriage, birth of a third child, purchase of a principal residence, divorce, over-indebtedness, etc.). The employee may request immediate payment of the profit-sharing, but in this case, the amounts are subject to income tax.

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

Employee Savings Plan (PEE)

The PEE is a collective savings plan allowing employees to build a portfolio of securities with the help of the company. The amounts paid (profit-sharing, mandatory profit-sharing, voluntary contributions) are blocked for a minimum of 5 years. The company may contribute to the employee’s payments.

PERCO and PERECO

The PERCO (Collective Retirement Savings Plan) and the PERECO (Collective Company Retirement Savings Plan, PACTE version) are retirement-oriented plans. The amounts are blocked until retirement of the employee, with limited cases of early release (purchase of a principal residence, life accidents).

Employer Contribution

The employer’s contribution is the additional payment made by the employer to complement the employee’s contributions. It is exempt from social security contributions within the following limits:

  • PEE: Maximum contribution of 8% of the PASS per year per employee, i.e., 8% × 47,100 = 3,768 € in 2025, limited to 300% of the employee’s contribution
  • PERCO/PERECO: Maximum contribution of 16% of the PASS per year per employee, i.e., 16% × 47,100 = 7,536 € in 2025, limited to 300% of the employee’s contribution

The employer contribution is subject to CSG (9.20%) and CRDS (0.50%) without deduction, as well as to the employer’s contribution.

Example: PEE Contribution

An employee contributes 1,000 € to their PEE. The company contributes 200%:

  • Employer contribution: 1,000 × 200% = 2,000 € (limited to 3,768 €)
  • CSG on contribution: 2,000 × 9.20% = 184 €
  • CRDS on contribution: 2,000 × 0.50% = 10 €
  • Employer contribution (Forfait social): 2,000 × 20% = 400 €
  • Net received by the employee in their PEE: 2,000 – 184 – 10 = 1,806 €

Employer Contribution: Rates Based on Employee Count

General Principle

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

Exemptions Based on Employee Count

Employee CountProfit-SharingMandatory Profit-SharingPEE ContributionPERCO/PERECO Contribution
Less than 500%0%20%20% (or 16% PERECO)
50 to 2490%20%20%20% (or 16% PERECO)
250 and more20%20%20%20% (or 16% PERECO)

Key Points:

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

Value Sharing Bonus (PPV) in 2025

Payment Conditions

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

Social Regime of the PPV in 2025

In 2025, the social regime of the PPV is as follows:

  • Exemption from social security contributions (within the limit of 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: total exemption including CSG/CRDS and income tax (this measure extended until December 31, 2026)

PPV Example

A company with 30 employees, employee earning 2,500 € gross/month (< 3 times SMIC: 1,801.80 × 3 = 5,405.40 €):

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

Same company, employee earning 6,000 € gross/month (> 3 times SMIC):

  • PPV paid: 2,000 €
  • Social security contributions: 0 €
  • CSG: 2,000 × 9.20% = 184 €
  • CRDS: 2,000 × 0.50% = 10 €
  • Income tax: liable to the income withholding tax
  • Net before income withholding tax: 1,806 €

CSG and CRDS on Wage Savings: Specific Rules

Tax Base Without Deduction

Unlike salaries (CSG/CRDS base = 98.25% of gross), wage savings income (profit-sharing, mandatory profit-sharing, contributions, PPV) is subject to CSG and CRDS on 100% of the amount, without the application of the 1.75% deduction for professional expenses. The BOSS specifies that this deduction is reserved for income from activity 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

Lines on the Payslip

Wage savings appear on the payslip of the payment month. The 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

Wage savings amounts are reported in DSN in the following blocks:

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

The employer contribution is reported with the Personal Working Code (Code Type de Personnel, CTP) 012 for the 20% rate. The employer must ensure consistency between the reported amounts and the sums actually paid or allocated.

Impact on Taxable Net and Social Net

Amounts from wage savings 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 (exempt from income tax as long as the amounts remain blocked).

Points of Caution for Payroll Managers

Respect for Payment Limits

Exceeding exemption limits results in the reintegration of the excess amount into the contribution base. The payroll manager should monitor annual accumulations 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 fiscal year (i.e., May 31 for a fiscal year ending on December 31). After this deadline, interest for late payment is due to employees.

Employee Information

The employer must provide each employee with an individual sheet summarizing the amounts attributed to profit-sharing and/or mandatory profit-sharing, the placement options, and the deadlines for making their choice (15 days from notification).

FAQ: Wage Savings in Payroll

Can an employee request immediate payment of their mandatory profit-sharing?

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

Is the employer contribution due on the PPV?

No. The PPV is not subject to the employer contribution, regardless of the company’s size. It is exempt from social security contributions and, depending on the case, from CSG/CRDS. The employer contribution only applies to traditional wage savings schemes (profit-sharing, mandatory profit-sharing, contributions).

How should a departing employee be treated regarding their profit-sharing?

An employee leaving the company before the payment date of the profit-sharing retains their rights. The company must pay them their share of profit-sharing, calculated pro-rata based on their duration of presence. The payment is sent to the last known address or the bank account provided. If the employee is untraceable, the amounts are held by the Caisse des dépôts et consignations.

Can the employer contribution differ among employee categories?

No, the employer contribution must be uniform for all employees. The rate and ceiling of the contribution must be identical, in accordance with the principle of collectivity of savings plans. However, a specific contribution may be provided for voluntary contributions on one side and contributions 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 more installments limited to one payment per quarter during the calendar year. This flexibility allows the employer to spread cash flow efforts while maintaining the benefit of the exemption.

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