Good surprise in sight for the millions of French people who benefit from a participation or profit-sharing bonus

The eleven million French employees who benefit from such a bonus could have a good surprise this week, with bonuses much larger than last year.

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Companies did good business last year. Growth reached 7%. Good news that will have real and stumbling consequences for all employees – they are eleven million – who receive participation or profit-sharing. Those must see their premiums paid imperatively before the end of May, for most companies, failing which, moreover, they could collect interest on late payment.

However, these bonuses are calculated according to the results of the company over the past year and according to Epsens, a company specializing in these products, the amounts paid this year should be 30% higher than what they were the last year. It is true that 2021 had not been a great year for employees. The participation had fallen by 14% and the profit-sharing by 11%. Some companies had even paid nothing at all. 2022 is going to do more than catch up.

The employees of these bonuses have the choice between receiving the money immediately and placing it on a company savings plan, (PEE), or on a collective retirement savings plan (Perco). Today, a large majority of employees choose to save these sums. With the high inflation that rages, even more employees could be tempted to save.

They are employees of large companies who receive profit-sharing or profit-sharing bonuses in France. 90% of large companies have their employees benefit from these systems. On the other hand, they are struggling to convince VSEs and SMEs. It is for this reason that participation and profit-sharing will be at the center of the law on purchasing power that the government is preparing and which must be voted on just after the legislative elections.

The Minister of the Economy said he was ready to drastically simplify once again the profit-sharing and participation schemes so that SMEs and companies with fewer than ten employees get started. Bruno Le Maire has asked the employers’ organizations to make proposals to him in this direction. Companies with less than fifty employees could be obliged to pay participation and the distribution of dividends could be conditional on the existence of a profit-sharing agreement with the employees.

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