Setting up a company PER: terms and benefits

The compulsory PER, also called PERECO, is an attractive savings contract that allows employees to build up additional income for retirement. The company PER makes it possible to invest employee savings as well as optional payments, whether voluntary or compulsory.

The PER provides additional income once in retirement. The money is released as a 100 % lump-sum payment or in the form of an annuity. Certain cases of early release are provided for by French law: purchase of a main residence, expiry of unemployment insurance entitlements, disability (learn more on service-public.fr) and so on. In addition, the voluntary payments made into the PER are deductible from your employee’s taxable income, within the legal limits. So many advantages that are sure to appeal to and retain your employees. Finally, as an employer, be aware that any payment made into your employees’ PER is exempt from social charges.

To begin with, you will need to check whether specific conditions have been formalised in your company, through a collective agreement or arrangement. If this is not the case, you can opt for a unilateral decision of the employer. Next, you will need to study the options available to you: the number of solutions on the market is considerable. To save you time and money, call on an insurance broker who will carry out a comparative review for you. Once it is taken out and activated, you will need to inform your employees of the contract being set up and of the terms for accessing it.