The bill n°2023-1107 passed in France on November 29th, 2023 concerning profit sharing with employees imposes new requirements on companies whose workforce is at least equal to 11 employees and not yet subject to mandatory profit-sharing.
Since January 1st, 2025 these companies, as long as they achieved a net profit for tax purposes equal to at least 1% of their turnover for and for FY 2022, 2023 and 2024, will have to implement a profit-sharing scheme for FY 2025.
These companies will can choose between :
- a mandatory profit-sharing agreement (“accord de participation”) or a voluntary profit-sharing agreement (“accord d’intéressement”). In this case, the voluntary profit-sharing agreement or the mandatory profit-sharing agreement based on a derogatory calculation formula should be concluded before June 30th, 2025, whereas, in our view, a mandatory profit-sharing agreement based on the statutory calculation formula should in practice be concluded before December 31st, 2025,
- a sharing value bonus (“prime de partage de la Valeur”). In this case, the decision of the employer or the negotiated agreement setting up this bonus and its payment will have to intervene between January 1st, 2025 and December 31st, 2025,
- a matching contribution on a company employees-savings plan or a company employees’ retirement plan. In this case, the matching contribution will have to be paid before December 31st, 2025.
