Value-Sharing Bonus – Applicable Regime from 2024

Employers can provide employees with a value-sharing bonus benefiting from favorable social and tax treatment under certain conditions, including:

• The bonus amount cannot exceed €3,000 per calendar year (€6,000 for companies with profit-sharing or employee shareholding schemes).
• The employee must be under an employment contract at the time of the bonus payment.
• The employee can allocate all or part of the value-sharing bonus to an employee savings plan or a retirement savings plan.

Social and Tax Regime Applicable to Bonuses Paid between January 1, 2024, and December 31, 2026

In companies with fewer than 50 employees:
When the employee receives compensation less than three times the annual value of the minimum wage corresponding to the contractually specified working hours, the value-sharing bonus is exempt from social security contributions, CSG-CRDS, and income tax.
When the employee receives compensation at least equal to three times the annual minimum wage, the value-sharing bonus is exempt from social security contributions and subject to CSG-CRDS and income tax.

In companies with 50 employees or more, regardless of the employee's compensation, the value-sharing bonus is exempt from social security contributions and subject to CSG-CRDS and income tax.

If the bonus is allocated in whole or in part to an employee savings plan or a retirement savings plan, the allocated amount is exempt from income tax.

Social and Tax Regime Applicable to Bonuses Paid from January 1, 2027
Regardless of the company size and employee's compensation, the value-sharing bonus is exempt from social security contributions and subject to CSG-CRDS and income tax.
If the bonus is allocated in whole or in part to an employee savings plan or a retirement savings plan, the allocated amount is exempt from income tax.

For more information on the conditions for the value-sharing bonus exemption, consult the Official Social Security Bulletin.