Employee Savings Plan Simulator: Employee savings for very small and small businesses

Simulate your PEI and its matching contribution

The simulator isolates the cumulative employer contribution. Your data is neither stored nor transmitted.

Why the PEI unlocks employee savings for small businesses

Setting up an in-house employee savings plan (PEE) involves negotiating regulations, choosing an account manager, handling administrative tasks, and bearing fixed costs that few small businesses can absorb. As a result, employee savings plans, with their considerable tax advantages, remained largely reserved for large companies for a long time. The intercompany savings plan (PEI) removes this barrier by pooling the resources.

The principle is that of a shared framework: a common account manager, a pre-established system, and the company simply has to sign up. Small businesses can thus participate in employee savings plans without having to deal with the associated complexities. For employees, the benefits are identical to those of a company savings plan (PEE) – employer contributions exempt from income tax, capital gains exempt from income tax, a 5-year lock-in period with broad early withdrawal options.

But the most strategic perspective is that of the business owner. In companies with fewer than 250 employees, the owner and, where applicable, their spouse/partner can themselves benefit from the PEI (Employee Savings Plan) and its employer matching contributions. The PEI then becomes a channel for transferring company funds to the owner's personal assets, with reduced taxation—a matter of both compensation and employee savings.

The 3 levers that this simulator reveals for the leader

Lever 1: the employer contribution, a deductible expense for the company

The employer contribution is deductible from taxable income and exempt from standard social security contributions (it is subject to the social security levy, which is reduced or even eliminated for small businesses). For the employee, it is not subject to income tax. In other words: a tax-efficient expense for the company, and a net tax-free gain for the employee. For executives who participate in this scheme, it is one of the most efficient ways to receive compensation.

Lever 2: Bring the manager and their collaborating spouse into the plan

This is an angle that standard distributors rarely mention: in a company with fewer than 250 employees, the business owner can directly benefit from the company savings plan (PEI), as can their spouse if they are a business partner. When properly structured, this plan allows for the annual transfer of a portion of the company's cash reserves to personal assets, with significantly more favorable tax treatment than dividend distributions or salary supplements. The precise adjustment of the contribution ceiling and formula is crucial here.

Lever 3: Combine profit-sharing, employee participation, and matching contributions.

The impact of the employee savings plan (PEI) is amplified when combined with a profit-sharing agreement and an employee shareholding scheme. Profit-sharing payments made into the plan are exempt from income tax and can trigger employer matching contributions; employee shareholding follows the same principle. For both management and employees, the combination of profit-sharing, employee shareholding, and employer matching contributions constitutes a powerful deferred compensation mechanism at a controlled cost for the company—a structure best developed with compensation consulting.

Case study: Sébastien, 46 years old, manager of an SME with 18 employees in Rennes

Sébastien sets up a company savings plan (PEI) in his SME and includes himself in it. He contributes €3,768 per year, and the company matches it with a 100% contribution (%), over a 10-year period. Here is the effect, isolated to the matching contribution, and its tax treatment:

By joining the PEI (Employee Savings Plan), Sébastien transfers nearly €7,500 annually (contribution plus employer matching) from his professional savings to his personal assets. Half of this—the employer matching contribution—is a tax-deductible expense for the company and a tax-exempt gain for him. Over ten years, the cumulative employer matching contribution amounts to nearly €37,680 in net savings after income tax. Meanwhile, his employees benefit from the same plan: the PEI fosters loyalty as much as it optimizes savings.

The lesson for SME managers: the Employee Savings Plan (PEI) isn't just a social benefit for teams; it's also a tax-efficient channel for personal compensation. When properly structured and integrated with profit-sharing and employee stock ownership plans, it rivals dividend payouts—often at a lower cost. The key is to fine-tune the matching contribution formula, which is a matter for professional advice.

A dual tool: to build team loyalty, to reward the manager

This simulator isolates employer contributions. However, the Employee Savings Plan (PEI) is conceived on two levels: as a social benefit that fosters employee loyalty, and as a compensation channel for executives in companies with fewer than 250 employees. The calibration of the employer contribution formula, its integration with profit-sharing and employee stock ownership plans, and the joint optimization of company/personal assets determine the plan's true effectiveness.

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. This objectivity allows us to design employee savings plans and executive compensation strategies together, across the entire market, without pushing any particular account provider or proprietary product. Let's make an appointment to structure your company's PEI and your leadership strategy.

Frequently Asked Questions

How does the PEI differ from the classic PEE?

The PEI offers the exact same advantages as the PEE—employee contributions exempt from income tax, a 5-year lock-in period, and capital gains exempt from income tax—but it is shared between several companies. The company adheres to an existing framework agreement, with a common account manager, instead of setting up and managing its own plan. It is the natural vehicle for very small businesses and SMEs that are not large enough to create an in-house PEE.

Can the manager benefit from the PEI?

Yes, in companies with fewer than 250 employees, the business owner and their spouse (if a business partner) can benefit from the PEI (Employee Savings Plan) and its employer matching contributions, just like employees. This makes it a personal compensation tool: when properly structured, it allows a portion of the company's cash reserves to be transferred to the owner's personal assets, with significantly more favorable tax treatment than a salary or dividend.

What is the tax advantage for the company?

The employer's contribution is deductible from its taxable income and exempt from standard social security contributions (it is subject to the social security levy, which is reduced or even eliminated for small businesses). For the employee, the contribution is exempt from income tax. The company thus transforms an expense into a social benefit and a tool for building loyalty, all at a controlled cost.

Can the PEI be combined with profit-sharing and employee participation schemes?

Yes, and that's where the effect is multiplied. Profit-sharing and employee stock ownership plan (ESOP) contributions paid into the ESP are exempt from income tax and can trigger employer matching contributions. The profit-sharing + employee stock ownership + matching contribution structure constitutes a powerful deferred compensation mechanism, both for employees and for the executive—best developed with a compensation consultant.

What is the difference between Balmont Conseil and a bank advisor?

Balmont Conseil is a consulting firm, a member of ANACOFI, with no capital ties to any bank or account provider. We design employee savings plans and executive compensation strategies together, selecting solutions from across the market. While a bank distributor promotes its own plan, we optimize the integration between the company and the executive's personal assets, with complete transparency.