Employers (excluding sole proprietorships) are subject to a new value-sharing obligation that applies to fiscal years beginning on or after January 1, 2025.
These provisions are experimental and will last for five years.
Which employers are concerned?
On one hand, the main companies concerned are those with at least 11 employees that have achieved a net fiscal profit of at least 1% of their turnover for three consecutive fiscal years.
This refers to the “Social Security” workforce (average annual workforce calculated as of December 31 of the previous year). The rule of neutralizing the crossing of the threshold for five consecutive years does not apply.
On the other hand, companies with at least 11 employees operating in the social and solidarity economy sector are also concerned if an extended branch agreement allows it and if they have achieved a surplus result of at least 1% of their revenues for three consecutive fiscal years.
This includes cooperatives, mutual societies, foundations, or associations governed by the law of July 1, 1901, or, where applicable, by the local Civil Code applicable to the departments of Bas-Rhin, Haut-Rhin, and Moselle.
What is the content of the new obligation?
Companies meeting the conditions related to workforce and net fiscal profit (or surplus result) must implement one of the following mechanisms for the following fiscal year:
- A profit-sharing or incentive scheme;
- A contribution to the employee savings plan;
- A payment of the value-sharing bonus (PPV).
Companies that implement and apply one of these mechanisms for the fiscal year in question are deemed to comply with the legal obligation.
When does it come into effect?
The new value-sharing obligation applies to fiscal years beginning on or after January 1, 2025.
For application in 2025, the previous three fiscal years (2022, 2023, and 2024) are taken into account to assess compliance with the condition related to achieving net fiscal profit (or surplus result).