The main social measures introduced by the law of August 16, 2022 on emergency measures to protect purchasing power and the Amending Finance Law for 2022

Bonus for value sharing ("prime de partage de la valeur")

From July 1, 2022 to December 31, 2023
 

The exceptional bonus for purchasing power (PEPA or "Macron bonus") has been replaced by a bonus for value sharing (PPV). Paid at the discretion of the employer, it comes in addition to the salary but cannot replace any salary item.

From July 1, 2022 to December 31, 2023, companies will be able to pay their employees a bonus of up to EUR 3,000 per year, but up to EUR 6,000 if a profit-sharing agreement has been concluded. Payments may be done in one or more instalments, with a limit of one payment per quarter.

Within these limits, the bonus will be exempt from social security contributions. The exemption will be extended to income tax, CSG/CRDS and social security contributions for employees earning up to three times the minimum wage.

Such bonus can be implemented by a company or group collective agreement or by unilateral decision of the employer after consultation of the works council (CSE).

Employee Saving Plans

Until
December 31, 2022
 

•  The early release of employee savings is made possible for the purchase of goods or the provision of services, the amounts released being exempt from income tax and social security contributions up to a limit of EUR 10,000 net. The employer is required to inform the employees concerned by such scheme by any means.

•  Companies with less than 50 employees can now implement a profit-sharing agreement by unilateral decision of the employer. This provision concerns companies that are not covered by an approved branch collective agreement, without trade union delegates and without CSE (or after negotiations have failed).

•  The maximum duration of profit-sharing agreements is increased to 5 years (instead of 3 years).

•  Companies now have the option of purchasing from employees the RTT days they choose to give up, which will be exempt from taxes and social security contributions. This measure concerns RTT days acquired from January 1, 2022 to December 31, 2025.

Overtime

As of October 1, 2022
 

•  Companies with 20 to 249 employees may benefit from a forfaitary deduction of employer's contributions for overtime hours as well as for RTT days gave up by an employee subject to a day-per-year working time scheme, as from October 1, 2022. The amount of this deduction should be set by decree at EUR 0.50 per hour of overtime worked.

•  The annual income tax exemption limit for overtime and complementary hours is raised from EUR 5,000 to EUR 7,500. It applies to remunerations paid for hours worked as of January 1, 2022.

•  Lunch vouchers can be used until December 31, 2023 to purchase any food product, whether directly consumable or not.

•  The daily limit is increased to EUR 25.

•  Lunch vouchers issued from September 1, 2022 to December 31, 2022 will be exempt from the employer's contribution on lunch vouchers up to a maximum of EUR 5.92 per voucher (instead of EUR 5.69).

•  It is now possible for employers to cover up to 75% of the cost of their employees' public transport subscriptions without paying social security contributions (instead of 50% previously), for 2022 and 2023.

•  The conditions of eligibility for the transport bonus ("prime transport") have been relaxed. It is now possible to combine this bonus with the employer's payment of part of the public transport subscription and/or bicycle hire.

•  The social and tax exemption limit has been raised to EUR 400 (instead of EUR 200), up to EUR 700 (instead of EUR 500) if the transport bonus is combined with the sustainable mobility package and EUR 800 (instead of EUR 600) if the sustainable mobility package is combined with the payment by the employer of part of the public transport subscription and bicycle rental.