Prime Macron 2022-2023: conditions, SMIC, for whom?

[Mise à jour le 26 juillet 2022 à 14h33] The exceptional purchasing power bonus, also called “Macron premium“, PEPA or “value sharing bonus” by the new government of Elisabeth Borne (ex “prime Covid”) is renewed for 2022-2023. As promised during the presidential campaign by Emmanuel Macron, the Government proposed on July 7, 2022 to triple the ceiling of this premium under the purchasing power bill. Tuesday July 19during the examination of this bill in the National Assembly, the deputies voted by a majority to continue the “Macron bonus”. The text will pass in the Senate from July 28 for final adoption (if all goes as planned) around August 7. If the conditions are unchanged, the new Macron bonus maybe paid until December 31, 2023 to employees receiving less than 3 minimum wage for an amount maximum ranging from 3,000 euros to 6,000 euros depending on the company. On a permanent basis, the bonus will then be open to all employees. It will continue to be exempt from social contributions but will be subject to tax. 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. 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 an exceptional purchasing power bonus (PEPA), exempt from any social or fiscal levies 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. It was renewed in 2022 by the amending finance law published in Official newspaper July 20, 2021 and is expected to be renewed for 2023. In the bill presented to the Council of Ministers on July 7, 2022, the exceptional purchasing power bonus understand :

• a annual bonus of up to 3,000 euros for all companies, and 6,000 euros for those who have set up a profit-sharing scheme or participation for the smallest companies, without any social or tax charge. for all the employees receiving less than 3 SMIC. This bonus can be paid until December 31, 2023,
• a Value Share Bonus (VSP)exempt only from social contributions but subject to income tax, for all employees, regardless of their income, which will take over from the first premium.

What is the amount of the Macron bonus and the ceilings?

► 2022-2023: the ceiling of the Macron bonus is tripled under the bill for purchasing power but it is the employer who decides the amount of the bonus. It can achieve:

• up to €3,000 net of tax, whether for the employer or the employee,
• up to €6,000 for companies that signed a profit-sharing agreement in 2021, or those with fewer than 50 employees.

Practical case : An employee earning 2,000 euros net per month may, from August 2022, then in 2023, receive from his employer a bonus of up to 6,000 euros net. This premium will be tax exempt. From 2024, he will be able to receive a value-sharing bonus of up to 5,400 euros net (after CSG and CRDS). However, this will be subject to tax.

► From 2019 to 2021: The premium is capped at 1,000 euros in companies that have not signed a profit-sharing agreement and 2,000 euros in companies that have signed a profit-sharing agreement or in companies with less than 50 employees or for workers in the “second line“if measures to upgrade their professions are taken. Second-line workers are all workers outside the medical professions who have been in contact with the public during the health crisis: cashiers, cleaners of urban spaces, maintenance agents, home helpers, construction workers…

What is the minimum wage amount?

The minimum growth wage or SMIC will be revalued on August 1, 2022.

Is the Macron bonus taxable?

In accordance with the bill presented by the government in July 2022, the Macron bonus will be 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. On the other hand, the premium called “value sharing” which will take over in 2024 will it be exempt only employer and employee social security contributions but subject to income tax. It can concern all employees without income limit.

What are the conditions for receiving the Macron bonus?

The payment of the exceptional bonus for purchasing power or “Macron bonus” is at the discretion of the company. The premium must meet the following conditions to qualify for social and tax exemptions :

• be an employee bound to the company by an employment contract, temporary made available to the company or public official of a public establishment of an industrial and commercial nature (EPIC) or a public establishment of an administrative nature (EPA) when it employs personnel under private law (such as regional health agencies – ARS) on the date of its payment;
• have a remuneration less than 3 times the amount of the Smic over the 12 months preceding its payment;
• the bonus cannot replace an increase in remuneration or a bonus provided for by a salary agreement, the employment contract or a practice in force in the company or public establishment;
• Disabled workers can benefit from the bonus: if they are linked to a work assistance establishment or service (Esat) by a work support and assistance contract; and whether all disabled workers linked to Esat are concerned by the payment of the exceptional bonus.

What is the date of payment of the Macron bonus?

The Macron bonus is a annual bonus therefore paid once a year. According to the bill presented by the government on July 7, 2022, the purchasing power bonus could be paid from August 2022 then in 2023 and 2024.

Sources:

What does the bill on purchasing power presented by the Government contain? July 8, 2022

The exceptional purchasing power bonus is renewed in 2021. July 21, 2021. Service-public.fr

“Prime Macron”: details on the terms of payment of the exceptional purchasing power bonus in 2021. April 28, 2021.

Social dialogue conference, March 15, 2021.

The exceptional bonus of purchasing power. Ministry of Labour. January 7, 2021.