Exceptional purchasing power premium will be extended

Published on : 16/10/2019 16 October Oct 10 2019

In response to the movement of “yellow vests”, a law of December 24, 2018 allowed companies to pay an exceptional bonus of “purchasing power” , exempt from social contributions, charges, taxes and income tax up to a limit of 1000 € per beneficiary. 
 As announced by the President of the Republic last April, at the end of the "Great National Debate" held throughout the country, this exceptional bonus scheme will be renewed for the year 2020. However, to encourage the distribution of wealth in companies, the exemption from contributions and taxes will this time be "conditional on the existence or the establishment by the company of a profit-sharing agreement that may exceptionally be concluded for a period of less than three years". 
This renewal is included in the Social Security Financing Bill for 2020, which was presented in the Council of Ministers on Wednesday 9 October 2019. The text is debated in Parliament this autumn and should enter into force at the end of the year.


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