Article 83 of the French General Tax Code: how does the mandatory group supplementary pension work?

An "Article 83" contract is a supplementary pension scheme to which the employee is compulsorily affiliated. It provides a lifetime annuity. Employer and employee contributions are deductible up to a combined limit of 8 times the gross annual salary used for calculation, this salary being taken into account up to eight times the annual social security ceiling (PASS).

Since October 1, 2020, new Article 83 contracts can no longer be established; they are replaced by the mandatory company retirement savings plan (PERO). Since January 1, 2026, mandatory contributions to a PERO are no longer tax-deductible for account holders aged 70 or older.

This page deals with employee taxation, deduction conditions, and withdrawal. It does not cover the employer's side (employer social security contributions, flat-rate social security contributions, deductions from profits), nor social security contributions on the annuity.

What is a contract (Article 83)?

The BOFiP (French Official Tax Bulletin) refers to "so-called Article 83 schemes" as contracts to which both the employee and the employer pay mandatory contributions. These schemes aim to acquire and provide for the enjoyment of lifetime rights in the form of an annuity, at the earliest upon pension liquidation or at the legal retirement age.

Conditions for deducting contributions

For contributions to be deductible, the BOFiP sets out several conditions. The table summarizes the main ones.

Could the manager be involved?

The BOFiP (Official Bulletin of Public Finances) clarifies that company officers do not, in themselves, constitute a separate category of personnel. They can benefit from the scheme if they fall into a broader employee category. The fact that the beneficiaries are senior executives is irrelevant.

This page does not address the situation of self-employed business owners. Their eligibility for an Article 83 contract is verified through their individual file.

The deduction limit: 8 % of the gross remuneration

Article 83 contributions and mandatory payments into a PERO (employee savings plan), including employer contributions, are deductible up to a total limit of 8% of the gross annual salary used for calculation. According to the BOFiP (French tax authority), this salary is taken into account up to eight times the PASS (annual social security ceiling): the maximum deduction is 8% of eight PASS. The PASS is €48,060 in 2026.

Three clarifications from the BOFiP:

• The gross annual remuneration is understood to be before deduction of the employee's share of social security contributions; ;
• the limit is reduced, where applicable, by exempt employee savings contributions; ;
• Beyond the limit, the employer's share of the excess is added to the employee's taxable income, and the employee's share is not deductible. The excess is then allocated proportionally to the contributions paid by the employer and the employee.

For example, the limit of 8 % gives the following amounts:

These amounts assume that no exempt employee savings payment reduces the limit and that remuneration remains within the limit of eight PASS.

What you pay into an article 83 contract or a PERO also counts towards your voluntary contributions to a PER: according to the BOFiP, the net deduction ceiling of the PER is reduced by the amounts paid into these schemes the previous year.

What has changed: from the Article 83 contract to the PERO

The BOFiP specifies that previous contracts can nevertheless accommodate new members.

The PERO is a company retirement savings plan to which employees are required to contribute, either to all employees or to specific categories of employees. Both employee and employer contributions are tax-deductible up to the same limit of 8%.

Existing plans, including Article 83 contracts, can be transferred to a company retirement savings plan (PER). The French government's public service website indicates a maximum transfer period of 4 months.

The exit strategy: an annuity

For a mandatory company retirement savings plan (PER), the French public service website (service-public.fr) indicates that savings from mandatory contributions are paid out solely as an annuity. If the monthly annuity amount does not exceed €110, it can be converted into a lump sum, by mutual agreement between the insurer and the beneficiary.

For Article 83 contracts, the BOFiP itself provides for the exception of annuities of €110 per month or less (see the table of conditions).

Taxation of annuities

Annuities received upon termination of a mandatory supplementary company pension plan (Article 83) and a PERO (employee savings plan) are declared on lines 1AS to 1DS, like pensions. They benefit from the 10% allowance. For 2025 income, declared in 2026, this allowance is a minimum of €454 per beneficiary and a maximum of €4,439 per household.

This rule applies to annuities derived from mandatory contributions. It excludes employee savings plan contributions and non-deducted voluntary contributions.

Capital gains tax (annuity of €110 per month or less)

If the annuity is converted into a lump sum, the portion of the lump sum resulting from mandatory contributions is taxed according to the progressive income tax scale, without the 10% allowance. Gains are subject to the flat-rate levy, with the option to choose the progressive tax scale. According to the French government's public service website, the overall levy rate is 31.4% for interest received since January 1, 2026.

Numerical example (fictitious profile)

Situation. A salaried sales director receives a gross annual salary of €90,000 in 2026. He has an Article 83 contract established before October 1, 2020, for a specific category of managers. The employer contributes €5,400 per year and the employee €3,600. The total contributions amount to €9,000. It is assumed that he has no tax-exempt employee savings plan contributions.

Issue. Do the total contributions exceed the limit of 8 %, and what happens to the excess?

Strategy. The firm compares the total contributions to the limit, then allocates the excess between employee and employer share, according to the BOFiP method.

Result.

Of the €9,000 in contributions, €1,800 are over the limit, i.e. 20 %.

This profile is fictitious. The amounts illustrate the mechanism and do not indicate any outcome for your situation.

What changes depending on your situation

• Your status: employee, company officer, or non-salaried manager.
• The date the contract was put into effect: before or after October 1, 2020.
• Your gross annual salary and employee savings contributions are tax-exempt.
• The allocation of contributions between the employer and you.
• Your age, with regard to the 70-year threshold for contributions to a PERO.
• The amount of the expected annuity, in view of the threshold of €110 per month.

Your limit in euros is calculated based on your application. No results are guaranteed.