Managing Employee Savings in Payroll for 2025: A Comprehensive Guide

Employee savings encompass all systems allowing employers to involve employees in the results of the business and to build up savings for the medium or long term: profit-sharing (intéressement), mandatory profit-sharing (participation), company savings plans (PEE), group retirement savings plans (PERCO/PERECO), and more recently, the Value Sharing Premium (PPV). In 2025, these systems benefit from a favorable social and tax regime, the details of which are specified by the Official Bulletin of the Social Security (BOSS, boss.gouv.fr).

This comprehensive guide is aimed at payroll managers, HR directors, and finance directors looking to master the processing of employee savings in payroll: exemption conditions, social flat rates based on workforce size, CSG/CRDS, matching contributions, PPV, and reporting in DSN.

Definition and Implementation Conditions

Profit-sharing is an optional scheme that allows employers to pay a collective bonus to employees linked to the results or performance of the company. It is established by a company agreement (or unilateral decision for 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 seniority condition of no more than 3 months).

Payment Limits

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

Profit-sharing is exempt from social security contributions (excluded from the base of Article L.242-1 of the Social Security Code), according to BOSS. However, it remains subject to:

CSG: 9.20% calculated on 100% of the amount (no deduction of 1.75% as the professional expense deduction does not apply to employee savings income)
CRDS: 0.50% on 100% of the amount
Social flat rate: variable based on workforce size (see dedicated section)

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

Numerical Example

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

Obligation and Legal Formula

Profit-sharing is mandatory in companies with at least 50 employees that have generated sufficient taxable net 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 = shareholders’ 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 length of service, or a combination of these criteria. The individual limit is identical to that of profit-sharing: 75% of the PASS = 35,325 € in 2025.

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

Exempt from social security contributions
CSG 9.20% + CRDS 0.50% without any deduction
Social flat rate according to workforce size

Lock-in of Amounts

Funds from profit-sharing are locked for 5 years (PEE) or until retirement (PERCO/PERECO), except in cases of early release (marriage, birth of a 3rd child, purchase of primary residence, divorce, over-indebtedness, etc.). The employee may request an immediate payment of the profit-sharing but in this 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 help of the company. The amounts paid (profit-sharing, mandatory profit-sharing, voluntary contributions) are locked for a minimum of 5 years. The company may match employee contributions.

PERCO and PERECO

The PERCO (Collective Retirement Savings Plan) and PERECO (Collective Company Retirement Savings Plan, PACTE law version) are retirement-oriented plans. The funds are locked until the employee retires, with limited cases of early release (purchase of primary residence, life accidents).

Employer Matching Contributions

Matching contributions are the amounts paid by the employer in addition to employee contributions. They are exempt from social security contributions within the following limits:

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

Matching contributions are subject to CSG (9.20%) and CRDS (0.50%) without deduction, as well as the social flat rate.

Example: PEE Matching Contribution

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

Employer’s matching contribution: 1,000 × 200% = 2,000 € (limited to 3,768 €)
CSG on matching contribution: 2,000 × 9.20% = 184 €
CRDS on matching contribution: 2,000 × 0.50% = 10 €
Social flat rate (employer): 2,000 × 20% = 400 €
Net received by the employee in their PEE: 2,000 – 184 – 10 = 1,806 €

General Principle

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

Exemptions Based on Workforce Size

Workforce	Profit-Sharing	Mandatory Profit-Sharing	PEE Matching Contribution	PERCO/PERECO Matching Contribution
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 flat rate on both profit-sharing and mandatory profit-sharing.
Companies with fewer than 250 employees are exempt from the social flat rate on profit-sharing only.
The social flat rate on PERECO matching contributions can be reduced to 16% (instead of 20%) under certain conditions.

Payment Conditions

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

In 2025, 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 SMIC: total exemption including from CSG/CRDS and income tax (this scheme is extended until December 31, 2026)

PPV Example

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

PPV paid: 2,000 €
Social Security contributions: 0 €
CSG/CRDS: 0 € (exempt < 50 employees and < 3 × SMIC)
Income tax: 0 € (exempt)
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 PAYE
Net before PAYE: 1,806 €

CSG and CRDS on Employee Savings: Specific Rules

Base Without Deductions

Unlike salaries (CSG/CRDS base = 98.25% of gross), employee savings income (profit-sharing, mandatory profit-sharing, matching, PPV) is subject to CSG and CRDS on 100% of their amount, without the professional expense deduction of 1.75%. BOSS specifies that this deduction is reserved for income from employment strictly defined.

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

Employee savings appear on the payslip 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 DSN in the following blocks:

Remuneration Block (S21.G00.51): with specific code types (profit-sharing, mandatory profit-sharing)
Contribution Block (S21.G00.78/79/81): social flat rate, CSG/CRDS
Assessed Basis Block (S21.G00.78): specific bases for social flat rate

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

Amounts of employee savings paid directly to the employee (not allocated to 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 as long as the amounts remain locked).

Points of Attention for Payroll Managers

Compliance with Limits

Exceeding exemption limits leads to reintegration into the contribution base of the excess fraction. The manager must track annual cumulative amounts per employee.

Payment Deadlines

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 December 31). After this deadline, late interest is due to the employees.

Employee Information

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

FAQ: Employee Savings in Payroll

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

No. The PPV is not subject to the social flat rate, regardless of the workforce size of the company. It is exempt from social security contributions and, under certain circumstances, from CSG/CRDS. The social flat rate only applies to traditional employee savings systems (profit-sharing, mandatory profit-sharing, matching).

The employee who leaves the company before the profit-sharing payment retains their rights. The company must pay them their share of the profit-sharing, calculated pro-rata their duration of presence. Payment is sent to the last known address or bank account provided. If the employee cannot be located, the amounts are held by the Caisse des dépôts et consignations.

Can matching contributions differ by employee categories?

No, the matching contributions must be uniform for all employees. The rate and cap of matching contributions must be identical, in accordance with the principle of collective nature of savings plans. However, a specific matching contribution may be foreseen for voluntary contributions on one side and amounts arising from profit-sharing/mandatory profit-sharing on the other.

Can the PPV be paid in several installments?

Yes, since the law of November 29, 2023, the PPV can be paid in one or several 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.