The financial “little extra” received at the end of the year by employees will decrease.
For several years, she has come to put butter in the spinach at Christmas time. Nearly 4 million French people receive a bonus in November or December intended to provide a financial boost for the end of the year. For employees earning up to €4,150 net monthly, it is around €500 (median amount). But 2023 will be the last year to take full advantage of it.
By the end of December, companies will still be able to pay their employees the value sharing bonus (PPV), ex-Macron bonus, without anyone paying tax on it (neither the company nor the employee). Which will no longer be the case in 2024. The rules will in fact change from January.
Next year, if your employer pays you this bonus, it will have to be included in your income to be declared for tax. As with the declaration made in 2023. Except that this time, it will be subject to income tax. Concretely, it will no longer be possible to receive exactly the amount given by the company. Social security contributions (CSG and CRDS), as well as your tax rate, will be applied to the amount received. The bonus that will then arrive in your bank account will be lower than in previous years.
If the ceilings are not changed (from €3 to €6,000 maximum depending on the company), the system will become less interesting. Firstly because employees will no longer receive as much, then because companies will also have to put their hands in their pockets and pay the State 20% of the amount granted.
Thus, for an employee whose tax rate is 1.5% and who benefits from a bonus of €500, €444.72 will be paid to them, taking into account social security contributions. The company will have paid €600.
This decision, taken by the government, was motivated by a recommendation from the Council of State. These changes are also a lever of additional revenue for the State which should pocket 200 million euros thanks to income tax. Social Security could see an additional 500 million euros arrive in its coffers thanks to contributions. If companies continue to pay this “Macron bonus”. In 2022, a total of 6,065,530 employees received this bonus, known as PPV, between July and December.