Looking forward | The Yellow Vest Exceptional Bonus is back…but with changes

Published on : 06/11/2019 06 November Nov 11 2019

A look at what’s to come in labor and business law

In response to the movement of “yellow vests”, on December 24, 2018 the government quickly passed a law that allowed companies to pay employees an exceptional bonus of “purchasing power” , exempt from social contributions, charges, taxes and income tax up to a limit of 1000 € per beneficiary. 
 
As announced by the President Emmanuel Macron last April, at the end of the "Great National Debate" that was held throughout the country, this exceptional bonus scheme will be renewed for the year 2020.
 
However, to encourage the distribution of wealth in companies, the exemption from contributions and taxes will now be subject to certain new conditions in addition to those set last year.
 
The exonerations will be "conditional on the existence or the establishment by the company of a profit-sharing agreement that may exceptionally be concluded for a period of less than three years.”
 
This is in line with the government’s encouragement of profit-sharing agreements in companies.
 
The renewal of this exceptional bonus is included in the Social Security Financing Bill for 2020, which was presented in the Council of Ministers on Wednesday October 9, 2019. The text will be debated in Parliament this autumn and should enter into force at the end of the year.
 

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