The Value Sharing Bonus: Possibility of allocating the bonus to an employee savings or pension plan

The law of November 29th, 2023, allows employees who receive the Value Sharing Bonus, to invest all or part of their bonuses in a company savings plan (Plan d’épargne entretprise “PEE”) or a retirement savings plan (plan d’épargne retraite “PER”).

The implementation of this option was subject to the publication of a decree. The decree of June 29th, 2024, no. 2024-664, was published in the Official Journal on June 30th. 

The sums invested in one of these plans are exempt from income tax. 

Employer provides information sheet

Since 1 July 1st, 2024, if the company has set up an employee savings plan (PEE or PER), the sums paid as a Value Sharing Bonus, employees must be informed by a different document from the pay slip. 

This informative document must include the following information:

  • The amount of the bonus.
  • CSG and CRDS deductions, where applicable.
  • Whether the bonus can be allocated to a company savings plan or a retirement savings plan
  • The deadline for the beneficiary to request that the sum be allocated to a savings plan, i.e. 15 days from the date of the information.
  • When the bonus is allocated to a savings plan, the period from which the rights arising from this investment are negotiable or payable and the cases in which these rights may exceptionally be liquidated or transferred before the expiry of this period (cases of early release).

 

Allocation of the bonus to the savings plan

Beneficiary employees must request that the bonus be allocated to a savings plan within 15 days of receiving the information. If no reply is received within this period, the bonus may no longer be allocated to a company savings plan or a retirement savings plan.

 

Taxation of bonus paid into a savings plan

When the bonus is invested in a savings plan, it is exempt from income tax up to the Value Sharing bonus exemption limit (€3,000 or €6,000 per year and per beneficiary, depending on the case), if the employee is not eligible for the exemption scheme (link to the January com on PPV 2024).

Unless the employee objects, this information may be provided electronically, under conditions that guarantee the completeness of the data.

 

Practical details

The company must first send the RH note needed to implement the Value Sharing Bonus (or the collective agreement if applicable, and the filing proof in this case) to the body responsible for managing the plan.