The " prime de partage de la valeur ", the inflation premium in France
From July 2022, the new value sharing premium will replace the extraordinary purchasing power premium ("Macron premium") introduced in France in 2019.
The Appreciation premium ( the so-called "prime de partage de la valeur") was recognised by the Law 2022-1158 of 16 August 2022 on urgent measures to protect purchasing power was introduced. It thus replaces the extraordinary purchasing power premium ("prime exceptionnelle de pouvoir d'achat", PEPA), the so-called "Macron premium", which expired on 31 March 2022.
The principles of the value sharing premium
Based on the extraordinary purchasing power premium, the value sharing premium in France is an incentive for companies to pay their employees an additional financial bonus.
Employers under private law, public organisations with an industrial or commercial character and public administrative bodies are affected by the value sharing premium if they employ staff under private law.
The beneficiaries of the value sharing premium are
- Employees with an employment contract (including trainees) and temporary agency workers
- Employees of certain public institutions
- Employees with disabilities who belong to work assistance organisations and services
Payment of the value sharing premium
The value sharing premium can be paid retroactively from 1 July 2022 as a one-off payment or in instalments with a maximum of one payment per quarter.
The The maximum amount of the value sharing premium is 3,000 euros per beneficiary and year. The maximum amount can be increased to EUR 6,000 if companies have introduced a profit-sharing or profit-sharing scheme.
Below these amounts, the premium is Exempt from French social security contributions. For employees earning up to 3 times the French minimum wage (SMIC), the bonus is additionally Exempt from income tax.
The value sharing premium, French special payment also possible in 2024
The value sharing premium will be continued from 2024 under the following provisions:
- Payment to all employees possible
- Exemption from social security contributions
- Cancellation of the income tax exemption
The maximum amounts of 3,000 or 6,000 euros remain unchanged, as do the conditions for payment, which can be made once or up to four times per calendar year.
If you have any questions, our Franco-German tax consultants and expert accountants in Paris and Bonn will be happy to advise you in person. We are also happy to provide advice throughout France and Germany by telephone and video conference. Your Franco-German tax consultancy FRADECO.
Disclaimer of warranty
The greatest possible care has been taken in the preparation of these German and French newsletters, but changes, errors and omissions remain reserved. The abstract legal presentation in these newsletters cannot replace individual civil and tax law advice from a German-French consultant in relation to the individual case. Subsequent changes in the legal framework, the opinions of the German or French tax authorities or the case law, also with retroactive effects, are possible.