Want to reward your team at the end of the year without increasing your payroll costs? The value-sharing bonus (prime de partage de la valeur, PPV) lets you pay up to several thousand euros free of social security contributions. But some of its tax advantages are time-limited: for businesses with fewer than 50 employees, the exemption from income tax and CSG-CRDS only applies to bonuses paid up to 31 December 2026, according to Article 1 of the law of 16 August 2022 as currently in force.
What the value-sharing bonus is
The PPV is an optional bonus that employers can pay each year. Service-Public.fr describes it as “a permanent scheme that companies can set up every year”. Any private-sector employer can pay it, regardless of headcount.
It benefits employees bound to the company by an employment contract on the date of payment, the date the agreement is filed or the date the unilateral decision is signed. The law also covers temporary agency workers, the public employees concerned and disabled workers in Esat sheltered workshops.
A key point: the bonus cannot replace a pay rise, an element of remuneration or a bonus already provided for by the employment contract, an agreement or established practice. A thirteenth-month payment already in place in the company therefore cannot be renamed a PPV.
Ceilings and exemptions: what the law says
- Social security contributions: the bonus is exempt from employee and employer contributions up to €3,000 per beneficiary per calendar year.
- Higher ceiling: the limit rises to €6,000 for employers that have a profit-sharing (intéressement) or employee profit-sharing (participation) agreement, in the cases provided for by law. The law assesses this condition on the date of payment, or takes into account an agreement concluded for the same financial year as that payment. Associations and foundations covered by Articles 200 and 238 bis of the French General Tax Code are entitled to it without having to meet this condition.
- Income tax and CSG-CRDS: in businesses with fewer than 50 employees, bonuses paid between 1 January 2024 and 31 December 2026 to employees who earned less than three times the annual minimum wage (Smic) over the previous twelve months are also exempt from them.
- Other cases: outside these conditions, CSG-CRDS applies at 9.70% on 98.25% of the amount, and the bonus is taxable, unless it is placed in a company savings or retirement plan, Fiche-paie.fr indicates.
- Forfait social: for this levy, the law treats the bonus in the same way as profit-sharing. According to Fiche-paie.fr, a 20% forfait social applies in companies with 250 or more employees.
Bonuses exempt from income tax remain included in the employee’s reference taxable income.
Steps to pay a PPV before the end of the year
- Check your headcount and each employee’s pay over the twelve months preceding payment, to find out who benefits from the income tax and CSG-CRDS exemption.
- Choose the legal basis: a company or group agreement, or a unilateral decision by the employer, after consulting the social and economic committee (CSE) if there is one.
- Set the amount: the same for everyone, or adjusted according to pay, job classification, length of service, actual attendance over the past year or working time provided for in the contract. Maternity, paternity, adoption and parental education leave cannot reduce the bonus.
- Schedule the payment: no more than two bonuses per calendar year, paid in one or more instalments, at most once per quarter. It is the payment date, not the decision date, that determines the applicable year, Fiche-paie.fr points out.
- Inform employees that they can save it: at their request, the bonus can be placed in a company savings plan or a company retirement savings plan. The amount allocated in this way within the regulatory deadline is exempt from income tax, and the employer must inform the employee of this deadline.
- Simulate the effect on your reductions: since 1 January 2026, the PPV has been included in the base for the single degressive general reduction in employer contributions (RGDU), according to Fiche-paie.fr. For an employee close to the Smic, the bonus can therefore reduce this relief. Simulate it with your payroll software or your accountant.
And in 2027?
Under current law, the enhanced scheme for businesses with fewer than 50 employees ends on 31 December 2026: a bonus paid in January 2027 would be subject to CSG-CRDS and, unless placed in a company savings or retirement plan, to income tax. According to Fiche-paie.fr (update of 2 October 2026), the 2027 social security financing bill, tabled in the National Assembly on 1 October 2026, plans to amend this scheme; the site describes it as a “bill not yet passed, which may change during the parliamentary debate”.
In addition, companies with 11 to 49 employees that have made a net taxable profit of at least 1% of their revenue for three consecutive years must, for financial years beginning on or after 1 January 2025, set up at least one value-sharing scheme: bonus, employee profit-sharing (participation), profit-sharing (intéressement) or employee savings plan, Service-Public.fr explains.
Frequently asked questions
Is the value-sharing bonus mandatory?
No, it remains optional. Only certain companies with 11 to 49 employees that have been profitable three years in a row must choose at least one scheme from among the PPV, employee profit-sharing, profit-sharing or an employee savings plan.
Can a different bonus be paid to different employees?
Yes, provided that only the criteria laid down by law are used: pay, job classification, length of service, actual attendance or working time. Individual performance is not on this list.
Does a bonus decided in December but paid in January qualify for the 2026 scheme?
No. The law covers bonuses “paid” between 1 January 2024 and 31 December 2026: it is the payment date that counts.
Can a non-salaried company director pay themselves a PPV?
The law reserves the bonus for employees bound by an employment contract and the other beneficiaries it lists. A director who combines their corporate office with an employment contract should check their situation with Urssaf or their accountant.
Where can I find the official rule for a specific case?
The reference text is Article 1 of Law No. 2022-1158 of 16 August 2022, available on Légifrance. For questions about contributions, contact your Urssaf; Allô Service Public does not deal with these questions.
Sources
- Loi n° 2022-1158 du 16 août 2022 portant mesures d'urgence pour la protection du pouvoir d'achat, article 1 — Légifrance, 2023-12-01
- Qu'est-ce que la prime de partage de la valeur (PPV) ? — Service-Public.fr, 2025-04-23
- Prime de partage de la valeur (PPV) 2026 : plafonds, exonérations et piège RGDU — Fiche-paie.fr, 2026-10-02