Objective of the law
On an experimental basis for a period of 5 years, the law requires companies with 11 to 49 em-ployees, meeting specific profit thresholds, to share their profits with their staff through mecha-nisms that qualify, under certain conditions, for preferential tax and social treatment.
Are you a company affected by the law?
The following four cumulative conditions must be met:
- Operate as a company (not as a sole proprietorship).
- Have between 11 and 49 employees during the previous calendar year (Social Security head count).
- Have a net taxable profit of at least 1% of turnover for each of the last three fiscal years.
For the evaluation of the net taxable profit condition, the value-sharing obligation comes into effect on January 1, 2025. Thus, sufficiently profitable and consecutive fiscal years 2022, 2023, and 2024 are considered. If you have a staggered fiscal year, the obligation applies to the next fiscal year starting after January 1, 2025. Example: if your fiscal year runs from April 1 to March 31, the obligation begins on April 1, 2025.
- Not having already implemented a value-sharing scheme.
What are your value-sharing obligations?
If you are subject to this new obligation, you must implement, during your next fiscal year (2025), at least one of the following legal value-sharing mechanisms:
- Voluntary profit-sharing.
- Incentive schemes.
- Value Sharing Bonus (PPV).
- Contributions to a company savings plan : PEE (Company Savings Plan), PEI (Inter-com-pany Savings Plan), PERCO (Collective Retirement Savings Plan), or PERECO (Collective Company Retirement Savings Plan).
What opportunities go beyond the obligation?
Beyond complying with the law, this new obligation presents an opportunity for your company to retain employees, reduce turnover, and even increase productivity.
By introducing at least one profit-sharing mechanism, this legislation strengthens social dialogue, employee satisfaction, and the attractiveness of your company.
COGEP support
Your accountants (COGEP), supported by employee savings experts (COGEP LIFE) and labor law attorneys (COGEP Avocats), will assist you in implementing one or more value-sharing mecha-nisms, ensuring they are tailored to your operations and strategy.
