Value sharing bonus in 2025

Social Security Financing Law for 2025: Inclusion in the calculation of the general reduction in employer contribution

Among the key measures of the Social Security Financing Law for 2025, adopted and published on 17 February 2025, is a new measure directly modifying the financial impact of the value-sharing bonus (“PPV” or “Macron bonus”) for employers.

Value sharing bonus paid as of January 1, 2025, are now to be included in the calculation formula and in the basis of the general reduction of employer contributions. In other words, these bonuses are added to the monthly salary to determine the basis for calculating social contributions reduction.

In practice, companies will be particularly impacted if their employees receive remuneration between 1 and 1.6 times the legal minimum wage (“SMIC”). Indeed, this salary bracket corresponds to the one where social contributions reduction is the highest.

This has a direct and negative impact on employers. Some may be impacted by a dicrease in the amount of the general reduction in employer contributions, while others may lose the benefit of the general reduction entirely. This would happen in particular if the payment of a Value sharing bonus results in exceeding the ceiling of 1.6 times the legal minimum wage.

BOSS Updates: Allocation of the PPV to an Employee Savings Plan

The “BOSS” (The official Social Security bulletin gathering administrative dispositions) has updated its Value sharing bonus content as of January 24, 2025. To this end, the administration has created a new section devoted to employee savings or retirement savings and has provided details on the terms and conditions for allocating the bonus to an employee savings plan. This document has been enforceable since February 1, 2025.

As a reminder, since July 1, 2024, companies that have an employee savings or retirement plan must offer employees either to receive their Value sharing bonus directly or to invest it in whole or in part in the plan.

What types of plans are concerned?

The different plans concerned are the “PEE”, the “PERCO”, the “PERECO” and the “PERO” (company saving and retirement plans). These plans can be concluded at the level of the company, the “UES” (economic and social unity), the group, the branch or at the inter-company level.

It should be noted that if invested in one of these plans, the Value sharing bonus benefits from an income tax exemption.

What information must be provided to employees?

If the company has one of the above-mentioned plans, each amount paid under the Value sharing bonus must be the subject of a separate slip on the pay slip which mentions, in particular, the amount allocated and the possibility of paying all or part of the bonus into the plan, as well as the application deadline, which is 15 days from receipt of the said slip.

The BOSS specifies that employees are questioned about the use of the sums from the Value sharing bonus by means of an option form, and that employees have 15 calendar days from the day following receipt of this option form to decide whether to receive this bonus directly or to invest all or part of it in the plan.

To avoid any discrepancies in the deadlines, it is recommended that the information sheet be sent to employees at the same time as the option form.

If the employee does not respond within the time limit, the bonus is paid directly to them. It is not allocated to a plan by default.

It should be noted that if the company wishes to pay a Value sharing bonus in several instalments (up to a limit of one payment per quarter during a calendar year), the information provided to employees on the investment or the immediate availability of the bonus must, in principle, be sent in respect of each payment. However, the BOSS admits that the employer asks its employees only once, during the first payment and that it considers the employee's answer valid for all payments. Employees can always reconsider their choice. After each payment, employees have the option of changing his or her initial choice for the next payment. The employer must inform the employee of this possibility when they are asked about the first payment.   

In the event that the company decides to pay 2 Value sharing bonus in the calendar year, the procedure must be followed each time. In this case, it is not possible to take into account the employee's response given for the first bonus for the payment of the second bonus.

And what are the information procedures for temporary workers? 

As a reminder, temporary workers benefit from the Value sharing bonus like permanent employees, if they meet the conditions of presence.

The company must inform the temporary employment agency (“ETT”) without delay, and communicate the identity of the temporary workers concerned, as well as the amount of the bonus for each of them so that the ETT can make the payment of the bonus.

The BOSS specifies that temporary workers cannot allocate their bonus to the savings plans of the user company. The administration seems to admit that it is possible for temporary agency workers to allocate their bonus decided by the user company only to the ETT's savings plans, if they exist.

Do I need to take any steps with my bank?

Yes. It is important that each company with an employee savings plan approaches its banking institution to make the necessary changes to their plan to provide for the possibility of allocating the sums paid under the Value sharing bonus to it. However, it is tolerated that the sums paid until 30 June 2025 under the Value sharing bonus scheme may be allocated to a plan before the amendment of its regulations.

On the other hand, if the company wishes to top up the sums paid under the Value sharing bonus, no tolerance is granted. The rules of the plan must be amended beforehand. Thus, no top up is possible without a modification of the regulations.

What are the reporting procedures?

The Value sharing bonus is included in the reference tax income (RFR) of the beneficiaries and is taken into account in the resource bases for the calculation of social benefits. When the Value sharing bonus is allocated to an employee savings plan, it is also included in the RFR, but it is not taken into account for the calculation of social benefits.

Note: As a reminder, the Value sharing bonus is included in the net social amount, unless it is placed on a plan.

BOSS adjustments: The case of corporate officers

Company officers with an employment contract must benefit from the Value sharing bonus under the same conditions as company employees. However, if the officer does not have an employment contract, he or she is not eligible for the payment of a Value sharing bonus.

Thus, non-salaried corporate officers cannot benefit from the payment of the Value sharing bonus.

To go + far: BOSS – Employee savings – 10

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