Why the Macron Bonus Is a Hit with Companies

Simple, effective, and tax-free, the Macron bonus is gaining traction in companies. Introduced in December 2018 in the wake of the “Yellow Vests” crisis, this salary supplement—which is at the employer’s discretion—was initially called the “exceptional purchasing power bonus,” then renamed the “Value-Sharing Bonus” (PPV), and is exempt from social security contributions and income tax.

The program is gaining momentum, even though a July 2022 reform limited the benefits of social security and tax exemptions to low-wage earners.

From January through September 2023, the Urssaf offices recorded 3,618,378 eligible employees from some 320,000 companies, with a total of 2.6 billion euros distributed. The final quarter is always marked by a spike.

In the fourth quarter of 2022 alone, 4.7 million employees working at just over 400,000 establishments received a PPV.

Employer organizations are expecting another strong year in 2023, at least as far as small and medium-sized businesses are concerned.

The Macron Bonus is expected to remain a sure bet in the coming years. This is certainly true for the smallest businesses, since companies with fewer than 50 employees will continue to benefit from social security and tax exemptions through 2026—unlike larger companies—pursuant to the law passed last November that implements the cross-industry agreement on value sharing signed just under a year ago by labor unions and employers.

Effective January 1, 2025, companies with 11 to 49 employees must implement at least one value-sharing program if they are profitable (taxable net income of at least 1% of their revenue for three consecutive fiscal years). This may take the form of a profit-sharing plan, an incentive plan, an employee savings plan, or a value-sharing bonus (PPV).

Members of Parliament have extended this requirement to social and solidarity economy enterprises (associations, mutuals, cooperatives). The legislation also facilitates the payment of the value-sharing bonus (PPV). This bonus may be awarded twice a year, subject to the total exemption limits (3,000 euros or 6,000 euros), and may be deposited into an employee savings plan. In companies with fewer than 50 employees, the bonus will remain exempt from tax and social security contributions as well as income tax until December 31, 2026, for employees whose compensation is less than three times the minimum wage.