Value-sharing bonus (PPV): the option of investing all or part of this bonus in an employee savings plan or a company pension plan is now available.
The French Value Sharing Act of November 29, 2023 had opened up this option, but it could not be implemented until the implementing decree had been published.
Since the publication of the expected decree in the Journal Officiel on June 30, 2024 (D n° 2024-644), this measure is now operational:
For employees who do not qualify for tax exemption (companies with at least 50 employees or employees who have received at least 3 SMIC per year over the past 12 months), this investment offers the advantage of an income tax exemption on the sums blocked, up to the exemption ceiling (€3,000 or €6,000 per year depending on the case), and allows the employer to top up the fund if the plan rules so provide.
In practice, a company with a savings plan (PEE, PEI, Perco, Pereco or Pero) must now, when paying out a PPV, provide the employee with a form separate from the pay slip, with the following compulsory information:
– the amount of PPV allocated ;
– when applicable, the CSG and CRDS deductions;
– the possibility of allocating this sum to a savings plan;
– the deadline of 15 days maximum following receipt of the form given to the employee to request the assignment;
– the period of unavailability and cases of early release in the event of allocation of the PVV to a plan.
Please note that this form can be sent by any means that provides proof of receipt.
The lawyers of our Employment Law department will be happy to answer any questions you may have about the practical implications of these new rules.
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