PEE: what you pay, and what you don't pay, when you withdraw your savings

When you withdraw money from your PEE (Employee Savings Plan), the withdrawn amounts are exempt from income tax. Social security contributions, however, are levied on the portion corresponding to the income generated by the plan (service-public.gouv.fr, fact sheet F2142, verified on 01/01/2026). The tax exemption requires that the income has been reinvested in the plan and that the required holding period has been respected, or that an early withdrawal provision applies.

The funds in a PEE (Employee Savings Plan) are invested in securities: their value can fall and the invested capital may not be returned. The numerical example below assumes a gain.

This page does not provide the social security contribution rate on gains from a PEE (Employee Savings Plan). The official sources consulted do not indicate this for this product (details below). It also does not address the situation of a non-resident, the relevant tax return box to use, or the details of the rates applicable to contributions made before 2018.

What is exempt, what is subject

The BOFiP (Official Bulletin of Public Finances) states the same thing for income tax: net gains realized within a savings plan are exempt (BOI-RSA-ES-10-30-10, paragraph 210). For social security contributions, it refers to Article L. 136-7 of the Social Security Code, without specifying a rate.

The two conditions for income exemption

Income from securities held in the PEE is tax-exempt if two conditions are met (service-public.gouv.fr, sheet F487, verified on 15/04/2026):

1. the income is reinvested in the savings plan; ;
2. The period of unavailability of the securities is respected.

The BOFiP specifies that the products re-employed in the plan are "definitively exempt upon expiry of the corresponding unavailability period" (BOI-RSA-ES-10-30-10, paragraph 190).

The lock-in period is at least 5 years. The funds are unavailable for 5 years from the date of each payment (see fact sheet F31622). A PEE (Employee Savings Plan) funded in installments therefore has multiple maturity dates.

Social security contributions: what the sources show, and what they don't say

The official sources consulted establish four points.

• The principle. The gains are subject to social security contributions (economie.gouv.fr, page on the PEE, written on 30/09/2026).
• The calculation. Social security contributions on gains made are calculated by the PEE manager (form F2142).
• Payments made before 2018. Gains generated by payments made into the plan before January 1, 2018, are taxed according to the "historical rates" in effect at the time they were realized (fact sheet F2142). The sources consulted do not provide these rates.
• A specific rule regarding the CSG (General Social Contribution). The F2329 fact sheet on social security contributions indicates that "specific rules may apply to the CSG rate for certain investments (for example, PEA, PEE or PEI)", particularly for situations prior to 2018.

None of the sources consulted provide the tax rate applied to gains from a PEE (Employee Savings Plan) in 2026. Fact sheet F2329 publishes rates for investment income in general, then outlines these specific rules. This page does not include any of them. To find out the exact amount withheld from your withdrawal, ask your plan administrator for a detailed breakdown of the calculation.

Entry into the plan also matters

The taxation of withdrawals depends on the origin of the funds. The sources consulted distinguish between:

The contribution ceilings are covered on a dedicated page. This page does not explain how the contributions paid upon entry are combined with those upon exit: the sources consulted do not describe this.

Remove before age 5

Two situations need to be distinguished.

An early release clause applies. Funds withdrawn through early release are exempt from income tax (form F31622). The request must generally be made within 6 months of the event. For termination of employment, it can be made at any time. The list of eligible cases and required documents can be found on the page dedicated to early release.

No case applies. Regarding profit-sharing and employee stock ownership plans, the F487 form states: "If you do not respect this holding period, the amounts are taxable." The F487 form also indicates that non-exempt amounts must be declared with salary. This page does not quantify this situation: the sources consulted do not specify what portion of the withdrawal is taxed, nor how. For voluntary contributions, the rule is not described in the sources consulted and should be verified before withdrawal.

After leaving the company

An employee who leaves the company can keep their PEE (Employee Savings Plan) under certain conditions. They can no longer make new contributions, except for the final profit-sharing or employee stock ownership plan payment (economie.gouv.fr). Retirees and those in early retirement can keep their PEE, without employer matching contributions (F2142 and economie.gouv.fr). The "Leaving the Company" page details this point. The sources consulted do not specify whether the tax treatment of withdrawals differs for a former employee.

Statement

Form F487 indicates that exempt amounts do not need to be declared. For profit-sharing and employee stock ownership plans, it states that non-exempt amounts must be declared with wages. It does not address the declaration of withdrawals from a company savings plan (PEE) and does not mention any specific box on the income tax return for the PEE: please refer to the instructions for the tax return for the year.

Numerical example (fictitious profile)

Situation. Nicolas, 52, is an employee residing in France. He made three voluntary contributions to his Employee Savings Plan (PEE): €6,000 in March 2019, €5,000 in March 2020, and €3,000 in March 2021, for a total of €14,000. No contributions were made before 2018. In November 2026, his plan is worth €19,600. Assumptions: all plan income has been reinvested; there have been no other contributions (no employer matching contributions, profit-sharing, or employee stock ownership plans), no fees, no prior withdrawals, and no deductions already made from the plan. In this case, the income generated by the plan is equal to the plan's value minus the contributions.

Issue. He withdraws the entire amount from the plan. What portion of the withdrawal is subject to income tax? What are the social security contributions levied on?

Strategy. First, we verify that each contribution has been made for 5 years, then we isolate the portion of the withdrawal that corresponds to the income generated by the plan. We do not apply any rate: the sources do not provide the rate for a PEE (Employee Savings Plan).

Result.

Social security contributions are calculated by the administrator on these €5,600. The calculation in this example only covers the taxable base; the rate can be found on the administrator's statement. This profile is fictitious, and the amounts are hypothetical. They illustrate the calculation and do not reflect your specific situation.

What changes depending on your situation

• The origin of the sums : voluntary contributions, matching contributions, profit-sharing, participation.
• The date of each payment : the 5-year period begins from each payment.
• The plan's revenues whether or not they are reinvested in the plan.
• Payments made before January 1, 2018, which fall under the category of "historical rates".
• A case of early release, and the timeframe within which you request it.
• Your tax residence : the sources read do not address the case of a non-resident.

The rule depends on your situation. No results are guaranteed.