The PPV: a smart bonus for employees in France

Who can grant the bonus?

In addition to certain public institutions, any employer in the French private sector can pay the PPV to their employees. The type of employment contract (open-ended or fixed-term, full-time or part-time) does not matter. Belgian companies with a French branch or employees working in France can also benefit from this scheme.

How to formalize the granting?

The bonus can be granted through:

• a company agreement;

• a unilateral decision by the employer.

When granting the bonus, the staff representative body (CSE) must be consulted.

How much is the bonus?

Per calendar year, as an employer you can:

• pay up to EUR 3,000 per employee;

• increase this amount to EUR 6,000 if there is a profit-sharing agreement (accord d’intéressement or accord de participation) in place in the company.

You can opt to pay an equal amount to all employees. However, it is also possible to vary the amount based on the following criteria set by law:

• salary,

• employee’s classification level,

• seniority within the company,

• duration of attendance in the previous year,

• working hours, as stipulated in the employment contract.

When is the bonus exempt?

To grant the bonus free of social security contributions, a number of conditions have to be respected:

• the PPV may not be granted to replace a salary increase or any other salary component;

• the employee’s gross salary is no more than three times the legal minimum wage over the past 12 months;

• the bonus is granted once or several times, without exceeding the quarterly maximum;

• your company has fewer than 50 employees.

Why is this relevant for Belgian employers?

Do you have operations or staff in France? Then the PPV is a great opportunity to stay competitive in the French job market while reducing fiscal costs. Vandelanotte will be happy to assist you in applying this bonus correctly in accordance with French regulations.