Employer contribution
The employer’s contribution is an optional financial contribution paid in by the company to supplement the payments you make1 into an employee or retirement savings plan2.
What types of payments are concerned? How is it paid in? Explanations.
Key information
Receive a boost to your savings effort
provided by your company.
Take advantage of a favourable tax regime by saving it
The employer’s contribution is exempt from income tax but subject to CSG (social security contributions)/CRDS (social debt repayment contributions)3.
How does it work?
The terms and conditions governing the employer’s contribution are determined by the company and defined in the agreements or rules governing the schemes concerned: the rate(s), the cap(s), the scheme’s top-up method(s) (voluntary payments, profit-sharing bonus, incentive bonus, TSA/unused leave transfers).
The amounts paid in as employer contributions must not exceed three times the employee’s contribution or the upper threshold applied to the scheme in which you are placing your savings:
- for the PEE, 8% of the PASS (Plafond Annuel de la Sécurité Sociale, or annual social security ceiling) (i.e. €3,519.36 in 2023)
- for the PERCO or PERECO, 16% of the PASS (i.e. €7,038.72 in 2023).
What is the tax regime applicable?
The employer’s contribution is exempt from income tax but subject to CSG (social security contributions)/CRDS (social debt repayment contributions)3.
If funds are withdrawn from the PEE, PERCO, PERECO or PERU, any proceeds from your savings resulting from employer contributions are exempt from income tax (excluding social contributions4).
1 Except in the case of a unilateral employer contribution.
2 Plan d'Epargne Entreprise (PEE, or company savings plan) / Interentreprises (PEI, or intercompany savings plan); Plan d'Epargne pour la Retraite COllectif (PERCO, or collective retirement savings plan) / Interentreprises (PERCOI, or intercompany collective retirement savings plan); Plan d'Epargne Retraite d'Entreprise COllectif (PERECO, or collective company retirement savings plan) / Interentreprises (PERECOI, or intercompany collective retirement savings plan); Plan d'Epargne Retraite Unique (PERU, or single retirement savings plan).
3 At an overall rate of 9.7% at 01/01/2023.
4 At a rate of 17.2% at 01/01/2023.