Employee participation

Value sharing: are you affected by the new obligation in some companies?

Publié le 17 janvier 2025 - Directorate for Legal and Administrative Information (Prime Minister)

From 2025, employers with 11 employees to 49 employees must implement a value-sharing scheme if they have achieved a net profit of at least 1% of turnover for 3 consecutive years.

Are you part of a company of at least 11 employees and less than 50 employees? As of 2025, your business must implement a value-sharing arrangement when it earns, for 3 consecutive years, a net tax profit of at least 1% of its turnover.

This experiment was announced in the law of 29 november 2023 on the inter-branch agreement on the sharing of value within the company.

This arrangement shall apply to financial years beginning on or after 1er January 2025, on an experimental basis for a period of 5 years.

Your employer can implement this value-sharing bonus in several ways:

  • establishing an incentive or participation agreement;
  • a wage savings plan (EEP, EIP, Perco or Pereco);
  • by paying a value-sharing premium (PPV).

Example :

Your business earns a net tax profit of at least 1% of its revenue in fiscal years 2022, 2023 and 2024. A profit-sharing or participation scheme, an abundance in a wage savings plan or a value-sharing premium for 2025 must be put in place for the year beginning on 1er January 2025 to December 31, 2025.

The amount of the premium and the distribution between employees are decided by the employer. It may be the same for all or may be adjusted according to certain criteria (remuneration, classification level, seniority in the company, length of actual presence during the previous year, working time laid down in the employment contract).

Reminder

The Value Sharing Premium (VPP) was introduced in 2022 by the law on emergency measures for the protection of purchasing power. It allows employers to pay a premium to their employees, which can be exempted from tax and social contributions under certain conditions. PPV can be paid regardless of the company's paid workforce. The terms of payment and the amount shall be the subject of a company or group agreement.

Warning  

The value-sharing premium may not replace wages, pay increases or bonuses provided for in a wage agreement, in the contract of employment or in the company’s practice.

To learn more about the value-sharing bonus, you can consult the Service-Public.fr :

What is the Value Sharing Premium (VPP) formerly known as the "Macron Premium"?

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