Prime Macron 2022-2023: conditions, date, mandatory?

[Mise à jour le 7 novembre 2022 à 15h09] The exceptional purchasing power bonus (PEPA), also called “Macron bonus” or “Covid premium” has been renewed in 2022 by the government of Elisabeth Borne who renamed it “value sharing bonus”. She is poured since July 1 2022 and totally exempt from social contributions (CSG-CRDS) and tax (income tax) until December 31, 2023. It is possible to see her on her salary for November and/or the following months. As promised during the presidential campaign by Emmanuel Macron, the ceiling has been tripled and can reach 3,000 to 6,000 euros depending on the company. For three years, nearly 5 million French people per year, on average, have benefited from the payment of a Macron bonus, remind him governmentfor an average amount of 500 euros. The Macron bonus should not be confused with the “Inflation” bonus paid to recipients of minimum social benefits, to scholarship students, to recipients of the specific solidarity allowance, to the elderly over 65 and beneficiaries of the solidarity allowance. Who is concerned by the premium over 2022-2023? What is the amount ? What terms ? Is it taxable?

What is the Macron bonus?

The Government has put in place through the law n°2018-1213 of December 24 2018 a exceptional purchasing power bonus (PEPA) (also called “Macron bonus”), exempt from any social or tax levy up to a limit of 1,000 euros, which can be paid by employers to the lowest paid employees. This bonus was modified and renewed twice in 2020 and 2021. This grant is intended for increase the purchasing power of employees and is added to their usual remuneration. It cannot replace this remuneration or any other bonus that would be due to the employee(s) of the company. She was renewed in 2022 by the amending finance law published in Official newspaper July 20, 2021 and renewed for 2023 by the law of August 16, 2022. It is now called the “Value Sharing Bonus” or PPV.. This new value-sharing premium, exempt from all employer and employee social security contributions, maybee paid to all employees in one or more instalments during the calendar yearspecifies the government on its sitefor a maximum amount of:

• 3,000 euros in all companies, including those in the public sector when they employ employees under private law;
• 6,000 euros in companies with less than 50 employees who have signed a profit-sharing or profit-sharing agreement and in companies with more than 50 employees, already subject to profit-sharing, which have signed a profit-sharing agreement.

The premium is totally exempt social and tax levies until the end of 2023 when it is paid to employees whose remuneration is less than 3 minimum wage. She will subject to tax from 1 January 2024.

Is the payment of the Macron bonus compulsory?

No, the payment of the Macron bonus or “value sharing bonus” is not mandatory for employers. As reminded by Ministry of Labour, “Employers have the possibility to pay their employee(s) a so-called “value sharing bonus” exempt from all social security contributions payable by the employee and the employer, as well as from other taxes, contributions and contributions due on the salary” not an obligation. Employers liable to pay a value-sharing bonus to their employees or agents are:
► all employers under private law, including self-employed workers (craftsmen, traders, farmers, liberal professions), mutuals, associations or foundations, trade unions, etc. (for temporary employment companies and user companies, see also below);
► the public industrial and commercial establishments (EPIC) (e.g.: RATP, INA, Opéra de Paris),
► public administrative establishments (EPA) when they employ staff under private law (e.g.: regional health agencies – ARS –, employment center, national social security funds).
The payment of a value-sharing bonus can occur regardless of the company’s salaried workforce.

The bonus cannot replace any element of remuneration.

When is the value sharing bonus payout date in 2022?

The premium is paid since July 1, 2022. It can be paid to all employees in one or more instalments during the calendar year, within the limit of once per quarter. Payment of the value-sharing bonus must must appear on one line – if possible specific because of the associated exemptions – the payslip of the month(s) of the payment.

What is the amount of the Macron bonus in 2022?

100 euros, 200 euro500 euro, 1000 euro, 1500 euro... once or several times. The amount of the Macron bonus or “value sharing” is set by employer and cannot exceed ceilings determined by the government (3000 to 6000 euro as appropriate, see below). Its amount may differ according to the beneficiaries based on compensation, classification level, seniority in the company, the duration of actual presence during the past year or the duration of work provided for in the employment contract (excluding paid leave, editor’s note)” specifies the final text adopted by the Senate. Namely that according to the government, the average amount of the Macron bonus paid to employees for 3 years is 500 euros.

What are the conditions for receiving the Macron 2022 bonus?

The payment of the Macron 2022-2023 bonus is still at the discretion of the company.

► She benefits employees bound to the company by an employment contractto temporary workers made available to the user company, to public officials belonging to the public establishment or to disabled workers linked to a work assistance establishment or service by means of a work support and assistance contract.

► It can be permanent employeesin CDDat full-time or at part-timeholders of a apprenticeship contract or a professional contractof disabled workers linked to an ESAT by a contract of support and assistance through work.

► It cannot replace an increase in remuneration or a bonus provided for in a salary agreement, the employment contract or a practice in force in the company or public establishment.

► This bonus is exempt from tax until the end of 2023 when it is paid to employees whose remuneration is less than 3 SMIC.

Can temporary workers receive the Macron 2022 bonus?

The value-sharing bonus can be paid to temporary workers made available to the user company. When a company allocates the value-sharing bonus to its employees, it must inform the temporary employment company without delay to which the seconded employee belongs. The latter shall immediately inform the Social and Economic Committee (CSE)when it exists. The temporary employment company pays the bonus to the employee made available, under the terms and conditions set by the agreement or decision of the user company. The premium thus paid benefits from tax exemption under the same conditions as permanent employees.

Is the Macron bonus taxable?

In accordance with the purchasing power bill adopted during the summer of 2022, the Macron bonus is totally exempt from social contributions (CSG-CRDS) and tax (income tax) until December 31, 2023 when it is paid to employees whose monthly remuneration is less than 3 SMIC. From the January 1, 2024, it will be subject to:

• for employees income tax and CSG-CRDS
• for employers with a social package at the rate of 20%, with the exception of employers with less than 250 employees who will be exempt from this contribution.

The minimum growth wage or SMIC was increased by +2.01% on August 1, 2022.

What are the ceilings of the Macron bonus?

The caps for the new value-sharing bonus are:

• €3,000 in all companies, including those in the public sector when they employ employees under private law;
• €6,000 in companies with less than 50 employees who have signed a profit-sharing or profit-sharing agreement and in companies with more than 50 employees, already subject to profit-sharing, which have signed a profit-sharing agreement.

What will be the conditions of the Macron bonus in 2024?

The value sharing premium will continue to apply after 1 January 2024. It can still be paid to all employees and will remain exempt from social security contributions. On the other hand, she will be accounted for in taxable income. The maximum amounts (3,000 or 6,000 euros) will remain unchanged, as will the terms of payment (one to four times per calendar year).

Sources : Ministry of Labor / Ministry of Finance and Economy / Gouvernement.fr / Legifrance / Urssaf