A Reform Driven by Real-World Needs 

In response to inflation and increasing pressure on employee purchasing power, the French government launched consultations in 2022 on a crucial yet sensitive topic: how to better involve employees in the success of their companies. These discussions led to a national interprofessional agreement in February 2023, later enshrined in the law of November 29, 2023, which took effect on January 1, 2025. 

The law’s objectives are threefold: expand value-sharing mechanisms to more employees, make them more accessible, and align employee savings with responsible investment strategies — for example, by promoting sustainable finance. 

What the Law Says 

The law now requires certain companies to implement at least profit-sharing mechanism based on their size and profitability: 

• Companies with fewer than 11 employees are not affected. 
   

• Companies with 11 to 49 employees must implement one profit-sharing scheme if they have generated at least 1% of their turnover as net profit over three consecutive years. 
   

• For companies with 50 or more employees, profit-sharing remains mandatory as before. 
   

Employers can choose from four main schemes: 

• Profit-Sharing (Participation) 
   

• Performance-based Bonus (Intéressement) 
   

• Matching Contributions (Abondement) 
   

• Value-Sharing Bonus (Prime de Partage de la Valeur – PPV) 

The new law only accepts these 4 schemes, international incentive programs and other types of bonuses will not be eligible to match with the requirement.  

Flexible Solutions for Every Business 

The new framework gives businesses the ability to tailor their approach depending on workforce size, growth stage, and retention strategies. This flexibility transforms a regulatory obligation into a strategic lever — provided the business is guided by the right expertise. 

Choosing an experienced brokerage partner ensures that options are properly assessed, and the selected scheme aligns with the company’s financial capacity and HR goals. 

Performance-based Bonus 

This bonus rewards employees when predefined objectives — such as revenue targets, profit margins, or even ESG metrics — are met. It’s fully customizable and exempt from social charges, especially attractive for small and medium enterprises. 

Profit-Sharing 

This legally regulated scheme distributes part of the company’s profits to employees. It is mandatory for companies with 50+ employees but remains optional (and advantageous) for smaller firms, which can opt for a lighter version. 

Matching Contributions 

This mechanism allows employers to supplement employees’ voluntary contributions into savings plans, up to three times the original amount. Under certain conditions, it’s exempt from employer social charges. 

Value-Sharing Bonus (PPV) 

This one-off bonus is flexible, non-binding, and tax-free for employees, while also being exempt from employer charges. It’s a powerful tool for short-term motivation or recognition. 

For a detailed overview of these schemes, see our dedicated article. 

A Managerial Opportunity Worth Seizing 

This regulatory shift goes far beyond mere compliance. It empowers companies to make tangible progress on employee engagement, recognition, and retention. Naturally, profit-sharing has now become market practice, even for small companies, even for firms that do not generate profit yet, thanks to the 4 profiles of schemes available.  

In a context of talent shortages and increasing demand for meaningful work, these schemes become powerful HR assets. For employees, they reflect a company’s genuine intention to share success and foster collective value. 

By adopting a value-sharing strategy, a business doesn’t just meet a legal requirement — it embraces a vision of responsibility, fairness, and team spirit. 

What if sharing value became the new way to perform?