Strengthening value sharing in companies

The government wants to strengthen the sharing of value with employees in companies that are not required to set up profit-sharing. Thus, as part of a 5-year experiment, these companies must, under certain conditions, set up a value-sharing mechanism for budget years beginning in 2025.

Who is concerned?

This experiment applies to companies that employ at least 11 or less than 50 employees and that make, for three consecutive budget years, a net tax profit of at least 1% of their turnover.

If these conditions are met, these companies must, during the following budget year, set up a value-sharing scheme of their choice from:

- profit-sharing.
- participation.
- a contribution to a savings plan set up within the company (company or inter-company savings plan, collective retirement savings plan, etc.).
- the payment to employees of a value-sharing bonus.

Please note: Companies that have already applied a value-sharing mechanism for the budget year in question are not subject to this experiment. The same applies to sole proprietorships and public limited companies with employee participation (SAPO(1)) that pay a dividend to their employees for the past budget year and whose interest rate on the amount paid to the holders of capital shares is equal to 0%.

From when?

This obligation to set up a value-sharing mechanism applies to budget years beginning on or after January 1st, 2025.

For each budget year, the condition relating to the realisation of the surplus result is assessed based on the three previous budget years. Thus, for the 2025 budget year, the 2022, 2023 and 2024 budget years are considered.

Please note: The experiment applies for a period of 5 years from November 29, 2023, i.e., until November 29, 2028.

(1) Sociétés Anonymes à Participation Ouvrière (SAPO)