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New law on Value Sharing Bonus (29/11/2023)

2023-12-06 - New law on Value Sharing Bonus

Good news on the Value Sharing Bonus (PPV): A second payment possible before the end of the year!


Here is an update on the Law n°2023-1107 of November 29th, 2023, transposing the national interprofessional agreement on Value Sharing within companies.
This law on Value Sharing Bonus (known as Prime Partage de la Valeur – PPV), which came into force on December 1st, allows a 2nd PPV to be paid over the year. It is now possible to pay a second Value Sharing Bonus over the year, starting in 2023.
The exemption cap of €3.000 and €6.000 remain unchanged, and are assessed globally by combining all Value Sharing Bonuses paid within the same year.
The bonus, or two bonuses, may be paid in one or more installments, up to a maximum of once per quarter, over the course of a calendar year.

> PPV Exemption maintained for companies with less than 50 employees

The preferential social regime, which was due to expire on December 31st, 2023, has been extended to December 31st, 2026.
Thus, for beneficiaries whose annual wage is less than 3 Annual SMIC (minimum legal wage), the PPV is exempt from social security contributions, CSG/CRDS and income tax.
In other cases (companies with at least 50 employees or annual salary of at least 3 SMIC), the PPV is exempt from social security contributions, but subject to CSG/CRDS, income tax and, for companies with at least 250 employees, to the social security flat rate (20%). 

> Share Value Bonus savings account is now possible

Payment of all or part of the PPV into a savings scheme is now provided for, enabling the beneficiary to benefit from an income tax exemption.
The effective implementation of this measure is subject to the publication of a decree. 
Reminder: Only employees with an employment contract are eligible for the Share Value Bonus.
This new version of PPV interest you and you would like to set it up within your company? Contact us for more information!

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