Employee savings and retirement
Company PER: pay your employees, and yourself, without the charges on a salary.
Incentive pay, profit-sharing, matching contributions: sums the company pays free of employer social security contributions and the beneficiary receives free of income tax. The company director can benefit too.
Two plans
The collective PER for all, the mandatory PER for a specific category.
Open to all employees. It receivesincentive pay, profit-sharing,matching contributions from the company, plus voluntary contributions. The savings are released at retirement, or earlier to buy a main residence.
Reserved for an objectively defined category of employees, managers for example. Contributions are mandatory and shared; the employee's share is deducted from their taxable salary up to 8% of their pay, counted up to 8 times the Social Security ceiling (Article 83 of the French Tax Code).
What each party gains
For the company, for the employee, for the director.
Matching contributions are a deductible expense for the company, free of employer social security contributions, with at most the forfait social to pay. They build loyalty without adding to the payroll.
Matching contributions, incentive pay and profit-sharing paid into the plan are exempt from income tax ; only CSG and CRDS, 9.7%, apply on the way in.
In a company with 1 to 250 employees, they receive the same matching contributions as their employees: a form of deferred pay, free of social security contributions, other than CSG-CRDS, and free of income tax on the way in.
Employees' retirement
Two more commitments the company can fund in advance.
Simulators
Run the numbers with your own figures.
Frequently asked questions
What clients ask us.
Matching contribution or bonus: which costs less?
Matching contributions. A bonus bears employer and employee social security contributions, then the employee's income tax. Matching paid into the collective PER bears only the forfait social on the company side (0% below 50 employees) and 9.7% CSG-CRDS on the employee side, with no income tax.
In return, the money is invested until retirement, barring early release, notably to buy a main residence.
How do you set up a collective PER?
By agreement with the employees or their representatives or, in a company that has none, by decision of the employer after informing the employees (PACTE Act of 22 May 2019). The plan rules set the investment options, the default managed allocation and the matching formula.
What happens to the savings of an employee who leaves the company?
It remains theirs. They can leave it in the plan or transfer it to their new employer's PER or to an individual PER; the transfer is free after five years of holding (Article L. 224-40 of the Monetary and Financial Code).
I have a former PERCO or an Article 83 plan: should I convert them?
Not necessarily: the old contracts carry on. Converting them into a PER opens up lump-sum withdrawal and a wider investment choice, but some older contracts guarantee an annuity table or a rate you will not find again. We compare before deciding, under the PACTE Act of 22 May 2019.
