Retirement savings plan () - mandatory company

Verified 18 juin 2026 - Public Service / (Prime Minister), Ministry of Finance

Your situation

  • This is a mandatory company PER
Edit

The mandatory company plan (also called PERO) is a plan that is open to all employees of a company or reserved for certain categories of employees. The employees concerned have the obligation to subscribe. This plan is the successor to the Article 83 contracts. The mandatory company permit entitles you to tax benefits and your rights are transferable to others. The plan's deadline is the retirement age, but with cases of early release.

The mandatory company plan (also called PERO) is a collective retirement savings plan that can be set up by the company for all its employees or for certain categories of employees. The implementation of this plan by the company is optional.

The categories of employees benefiting from compulsory company must be defined on the basis of objective criteria.

If you are one of these employees, you must subscribe to the plan.

The mandatory company system is set up in a company.

It can be created by

  • decision of the head of company,
  • or ratification of an agreement by the majority of employees
  • or a collective agreement.

The company may choose to combine the voluntary group savings plan and the mandatory group savings plan into a single plan. Older savings plans, such as Perco and Article 83, can be transferred into a single plan.

Managed Management

Unless otherwise specified by you, the management of the sums paid on the This means that when retirement is far away, savings can be invested in riskier, more rewarding assets. As retirement age approaches, savings are gradually being channeled into less risky vehicles.

The collective company fund must offer you at least one alternative investment vehicle, which allows you to invest in a solidarity fund.

Information of the employee

If you are one of the employees eligible for the mandatory company plan, the company must inform you of the mandatory nature of your membership in the plan.

It must also provide you with a regulation that informs you of the existence of the plan and its content.

Each year, the manager must give you the following information:

  • Evolution of savings
  • Financial performance of investments
  • Amount of fees charged
  • Conditions for transferring plan.

From the 5th year before your retirement age, you can ask the manager of the

Payments by the employee

You can fund your mandatory company with:

  • Voluntary payments from you
  • Mandatory payments from you
  • Amounts from the participation and profit-sharing, if the company has a plan in place that benefits all employees
  • Amounts from the transfer of other retirement savings plans
  • Rights on a time savings account (CET)
  • In the absence of CET, amounts corresponding to days of rest not taken, up to a limit of 10 per year.
  • Payments of all or part of the value-sharing premium (PPV) or the premium resulting from the company valuation sharing plan (PPVE).

Payments by employer

The compulsory company pension may be financed by compulsory company payments.

Early release case

You can recover your savings early only in the following cases:

  • Death of spouse or Civil partnership partner of holder of
  • Disability (2nd or 3rd category) of the holder of the -, his children, his spouse, or his Civil partnership partner
  • Serious illness, disability or occurrence of an accident of a particular severity in the dependent child of the holder of the
  • Over-indebtedness of the holder of the ₩(in this case, it is the over-indebtedness commission that must write to the managing body of ₩)
  • Expiry of the unemployment insurance rights of the holder of the - or termination of the office of corporate officer for at least 2 years without employment contract and without pension liquidation in a compulsory old-age insurance scheme
  • Termination of self-employed activity of the holder of the
  • Purchase of the principal residence (but in this case, the rights resulting from compulsory payments remain blocked).

Taxation applicable to capital resulting from early release

The situation varies depending on the reason for the early release:

Répondez aux questions successives et les réponses s’afficheront automatiquement

General scenario

The share of capital corresponding to the payments made on the is exempt from income tax and social security contributions.

The share of capital corresponding to earnings is subject to social security contributions.

Release for the acquisition of the principal residence

The share of capital corresponding to voluntary payments deducted of taxable income is subject to income tax, without the application of the 10%.

The share of capital corresponding to voluntary payments not deducted of taxable income is exempt from income tax. The same applies to employee savings premiums, the rights held in one time savings account (CET) and the days off not taken.

The share of capital corresponding to earnings is subject to the single flat-rate levy (PFU).

The rights resulting from the compulsory payments are necessarily liquidated in the form of life annuity.

The rights arising from other payments (voluntary payments, participation, profit-sharing, CET days, etc.) may be liquidated as an annuity, as capital, partly as an annuity and as capital. Capital withdrawals can be split.

Répondez aux questions successives et les réponses s’afficheront automatiquement

Transfer of former savings products to the mandatory company

Retirement savings products existing before 1er october 2019 may be transferred to the mandatory company:

  • PEOPLE'S RETIREMENT SAVINGS PLAN - PERP
  • Madelin contract
  • Prefon
  • GROUP RETIREMENT SAVINGS PLAN - PERCO
  • Mutual pension supplement - Corem
  • Hospital Retirement Supplement - CRH
  • Contract article 83.

The transfer must be made within a maximum period of 4 months.

In case of delay, you can refer the matter to the Ombudsman of the Autorité des marchés financiers.

Who shall I contact

  • If you encounter a difficulty with a financial intermediary or a listed business, you can refer the matter to the AMF Ombudsman.

    Be careful : before submitting your complaint, make sure that your request falls within the AMF's jurisdiction.

    By courier

    Access to contact form

    By post

    Ombudsman of the Autorité des marchés financiers

    17 place de la Bourse

    75082 PARIS CEDEX 02

    By phone

    01 53 45 60 00

FYI  

The tax advantage linked to the transfer of an insurance contract of more than 8 years to a abatements related to detention) ceased on 31 December 2022.

Transfer of the compulsory company to another

You can transfer the accumulated savings to the mandatory company account on all other accounts.

The transfer is possible when you no longer have the obligation to join the plan (departure of the company for example).

The transfer is free if you have owned the product for at least 5 years.

If you have held the product for less than 5 years, you may be charged a transfer fee, up to a maximum of 1% of the accumulated savings.

The transfer must take place within a maximum of 3 months.

In case of delay, you can refer the matter to the Ombudsman of the Autorité des marchés financiers.

Who shall I contact

  • If you encounter a difficulty with a financial intermediary or a listed business, you can refer the matter to the AMF Ombudsman.

    Be careful : before submitting your complaint, make sure that your request falls within the AMF's jurisdiction.

    By courier

    Access to contact form

    By post

    Ombudsman of the Autorité des marchés financiers

    17 place de la Bourse

    75082 PARIS CEDEX 02

    By phone

    01 53 45 60 00

Taxation at entry

As long as they are completed before your 70th birthday, voluntary and compulsory payments to a company in a year are deductible from the taxable income of that year. This deduction shall not exceed an overall ceiling amount fixed for each member of the tax home.

In 2026, the maximum amount of payments on your {circumflex over (X)} is equal to the greater of the following two amounts:

  • 10% of 2025 employment income, net of social security contributions and employment expenses, with a maximum deduction of €37,680,
  • or €4,710 if this amount is higher.

If you do not deduct voluntary payments from your taxable income, you will be taxed only on capital gains at the time of the liquidation savings.

Payments into a fund of company employee savings (profit-sharing, participation, abundances employers) are exempt from income tax.

Taxation at exit

Output taxation depends on the nature of the payments that have fed the, and the method of liquidation of savings (annuity or capital):

Répondez aux questions successives et les réponses s’afficheront automatiquement

Voluntary payments tax deducted

Annuity release
In 2025

The annuity from voluntary payments already deducted is taxable at income tax, in accordance with the rules applicable to retirement pensions.

The amount of the pension must be declared and is in addition to your taxable income in the category of pensions, pensions and annuities. On all income in this category, the tax administration automatically applies a abatement from 10%within the limit of an annual ceiling per tax household.

Of social levies shall also apply on a fraction of the pension. The taxable portion varies according to your age on the date of 1er payment of the annuity.

The portion of the annuity taxable to social security contributions is:

  • 70% if you were under 50
  • 50% if you were between 50 and 59 years old
  • 40% if you were between 60 and 69 years old
  • 30% if you were over 69.

For annuities paid in 2025, the social security contributions on investment income is of 17.2%.

From 2026

The annuity from voluntary payments already deducted is taxable at income tax, in accordance with the rules applicable to retirement pensions.

The amount of the pension must be declared and is in addition to your taxable income in the category of pensions, pensions and annuities. On all income in this category, the tax administration automatically applies a abatement from 10%within the limit of an annual ceiling per tax household.

Of social levies shall also apply on a fraction of the pension. The taxable portion varies according to your age on the date of 1er payment of the annuity.

The portion of the annuity taxable to social security contributions is:

  • 70% if you were under 50
  • 50% if you were between 50 and 59 years old
  • 40% if you were between 60 and 69 years old
  • 30% if you were over 69.

The rate of social security contributions on investment income is of 18.6%, applicable to annuities paid from 1er January 2026.

Capital outflow
In 2025

The share of capital corresponding to the accumulation of voluntary payments shall be imposed on progressive scale of income taxwithout social security contributions.

In practice, the share of capital corresponding to your voluntary payments (already deducted from your taxable income in the year of the payments) is added to your taxable income in the year of exit, in the category of retirement pensions. This share of capital is taxable without the deduction of 10%.

The share of capital corresponding to the interest generated by the contract is subject to the one-off flat-rate levy (PFU) made by the bank before it pays you the capital.

For interest received up to 31 December 2025, the overall rate of the flat-rate levy applied by the bank shall be 30%, corresponding to 12.8% in respect of income tax and 17.2% social security contributions on investment income.

From 2026

The share of capital corresponding to the accumulation of voluntary payments shall be imposed on progressive scale of income taxwithout social security contributions.

In practice, the share of capital corresponding to your voluntary payments (already deducted from your taxable income in the year of the payments) is added to your taxable income in the year of exit, in the category of retirement pensions. This share of capital is taxable without the deduction of 10%.

The share of capital corresponding to the interest generated by the contract is subject to the one-off flat-rate levy (PFU) made by the bank before it pays you the capital.

For interest earned on or after 1er in january 2026, the bank’s overall flat-rate levy is 31.4%, corresponding to 12.8% in respect of income tax and 18.6% under the social security contributions on investment income.

The flat-rate non-derogatory levy of 12.8% is paid as income tax at the time interest is paid.

You can apply to be exempt from the flat-rate levy if your reference tax income for the penultimate year is less than:

  • €25,000 if you are single
  • €50,000 for a married or entered into a civil partnership couple subject to common taxation.

For an exemption request made in 2026, your 2024 reference tax income must be taken into account. The request must be sent to the financial institution that pays you the interest at the latest at the time of collection.

In general, the financial institution provides a completed sworn return form if you meet the conditions. If you have a personal space set up by your manager, the waiver request can be made in electronic format.

Voluntary payments not tax deducted

Annuity release

The annuity is taxable at income tax according to the applicable rules life annuities for consideration. It is a tax system that deals only with a fraction of the pension and which takes into account your age at the date of the release of the pension.

Thus, your age as of 1er payment of the annuity determines the taxable portion of the annuity, this portion is:

  • 70% if you were under 50
  • 50% if you were between 50 and 59 years old
  • 40% if you were between 60 and 69 years old
  • 30% if you were over 69.

The taxable fraction of the annuity is also subject to social levies on wealth income at the rate of 18.6%.

Capital outflow
In 2025

The share of capital corresponding to accumulating your voluntary payments (not deducted from your taxable income in the year of payments) is exempt income tax and social security contributions.

Only the share of capital corresponding to interest generated by the contract is taxed in respect of investment products. It is subject to the one-off flat-rate levy (PFU) made by the bank before it pays you the capital.

For interest received up to 31 December 2025, the overall rate of the flat-rate levy applied by the bank shall be 30%, corresponding to 12.8% in respect of income tax and 17.2% for social security contributions.

From 2026

The share of capital corresponding to accumulating your voluntary payments (not deducted from your taxable income in the year of payments) is exempt income tax and social security contributions.

Only the share of capital corresponding to interest generated by the contract is taxed in respect of investment products. It is subject to the one-off flat-rate levy (PFU) made by the bank before it pays you the capital.

For interest earned on or after 1er in january 2026, the bank’s overall flat-rate levy is 31.4%, corresponding to 12.8% in respect of income tax and 18.6% under the social security contributions on investment income.

The flat-rate non-derogatory levy of 12.8% is paid as income tax at the time interest is paid.

You can apply to be exempt from the flat-rate levy if your reference tax income for the penultimate year is less than:

  • €25,000 if you are single
  • €50,000 for a married or entered into a civil partnership couple subject to common taxation.

For an exemption request made in 2026, your 2024 reference tax income must be taken into account. The request must be sent to the financial institution that pays you the interest at the latest at the time of collection.

In general, the financial institution provides a completed sworn return form if you meet the conditions. If you have a personal space set up by your manager, the waiver request can be made in electronic format.

Company payments from employee savings plans

Payments from employee savings in company (profit-sharing, participation, employer contributions) can be liquidated as an annuity or capital:

Annuity release

The annuity corresponding to the payments from employee savings is taxable to income tax according to the rules applicable to Life annuities for consideration. It is a tax system that deals only with a fraction of the pension and which takes into account your age at the date of the release of the pension.

Thus, your age as of 1erpayment of the annuity determines the taxable portion of the annuity, this portion is:

  • 70% if you were under 50
  • 50% if you were between 50 and 59 years old
  • 40% if you were between 60 and 69 years old
  • 30% if you were over 69.

The taxable portion of the annuity is also subject to social levies on wealth income at the rate of 18.6%.

Capital outflow

The share of capital corresponding to payments from employee savings schemes is exempt income tax and social security contributions.

Only the share of capital corresponding to interest generated on the planis taxed in respect of investment products. It is subject to the one-off flat-rate levy (PFU) made by the bank before it pays you the capital.

For interest earned on or after 1er in january 2026, the bank’s overall flat-rate levy is 31.4%, corresponding to 12.8% in respect of income tax and 18.6% for social security contributions.

Mandatory payments

Savings from compulsory payments into a company-owned company are paid only as annuity.

The annuity is taxed on income tax, according to the rules applicable to retirement pensionsand social security contributions.

But if the monthly amount of the annuity does not exceed €110, the annuity may be converted into capital by mutual agreement between the insurer and the beneficiary of the annuity.

This possibility of conversion exists at the time of the release of the {circumflex over (X)} or even after when the annuities are already being paid.

In this case, the share of capital corresponding to the compulsory payments of the company is subject to income tax, in the category of pensions and pensions, but without the application of the 10%.

The share of capital corresponding to earnings is subject to the PFU (single flat-rate levy), but with the possibility of an option for the application of the progressive income tax scale.

This levy corresponds to income tax at a flat rate of 12.8% to which social security contributions are added.

If you die, the plan will be closed.

The money you have saved will be returned to your heirs or beneficiaries that you have designated in the contract, in the form of capital or annuity.

If it is a plan opened in the form of a securities account, the sums saved and transferred shall be incorporated into theestate assets and taxed according to inheritance tax.

If it is a plan that has led to the adherence to a group insurance contract, the sums saved and transferred are taxed according to rules similar to life insurance. The situation varies depending on whether the death of the holder of the certificate occurred before or after 70 years.

Please note

In the event of death after age 70, the sums paid by the insurer (savings and earnings) are subject to the inheritance tax after application of a abatement from €30,500.

This allowance is global and must be shared between the beneficiaries and distributed according to their share in the taxable sums.

Inheritance tax is calculated on the basis of the relationship between each beneficiary and the holder of the deceased.