Corporate PER 2026: PEREC, mandatory PER and PERCO migration

For an SME executive or HR director (30 to 300 employees), implementing a corporate retirement savings plan (PER — plan d’épargne retraite) in 2026 addresses several converging priorities: fulfilling the value-sharing obligation introduced by Law no. 2023-1107 of 29 November 2023 for companies with 11 to 49 employees; building a differentiating HR benefit in a competitive hiring market; benefiting from a highly favourable social tax treatment (0% social charge — forfait social — for entities under 50 employees under the PACTE law); and preparing the retirement transition of long-tenured staff.

The regulatory landscape is complex: PEREC (collective optional retirement savings plan, the former PERCO since the PACTE law of 2019), mandatory PER (PER-OB, the former Article 83 defined-contribution contract), PEE (company savings plan — plan d'épargne entreprise), articulation with profit-sharing and incentive schemes, company agreement versus unilateral employer decision (DUE — décision unilatérale de l'employeur). This practical employer guide details the structuring choices, the step-by-step implementation process and the real financial trade-offs.

Note: this article exclusively covers the employer perspective. For the individual director's angle and personal patrimonial optimisation, see our executive PER 2026 guide and our article on TNS retirement reform 2026.

In practice, setting up a PEREC with an employer top-up is the most appropriate solution for an SME with 30 to 150 employees that has no union delegates. It satisfies the value-sharing obligation, offers employees a meaningful net benefit, and allows the company to deduct the full top-up from its taxable profit — all with zero social charge for entities under 50 employees.

Three vehicles coexist in French law. They serve different objectives and target different populations.

The 2026 PASS (annual social security ceiling) is €48,060 (decree of 22 December 2025). PEREC employer top-ups are therefore capped at €7,689.60 per employee per year, subject to the additional rule that the top-up cannot exceed three times the employee's own voluntary contribution in any given year.

Recommendation by company size#

Smaller businesses with 11 to 49 employees: a PEREC alone satisfies the value-sharing obligation and benefits from the 0% social charge. SMEs with 50 to 249 employees: combining a PEE with a PEREC is more effective — the PEE serves medium-term savings, the PEREC builds long-term retirement capital. SMEs with 250+ employees and mid-caps: a PER-OB for executives can be added on top of the collective PEE/PEREC.

Our chartered accountant's view#

The common pitfall is comparing an employer top-up with a salary raise on a gross-for-gross basis, without factoring in social charges and employee income tax. For an SME under 50 employees, €1,000 of employer top-up costs exactly €1,000 (0% social charge) and delivers €850 to €900 net to the employee when the plan unlocks. By contrast, €1,000 of gross salary increase costs the employer around €1,410 (41% employer social contributions) and leaves the employee with only €600 to €650 net after deductions and income tax. The gap is substantial — provided the employee accepts the lock-up period.

Since 1 January 2025, companies with 11 to 49 employees that report a net taxable profit of at least 1% of turnover for three consecutive financial years must implement at least one value-sharing arrangement. Four valid options:

• Value-sharing bonus (PPV — prime de partage de la valeur)
• Incentive scheme (intéressement)
• Voluntary profit-sharing (participation volontaire)
• Employer top-up on an employee savings plan (PEE, PEREC, PER-OB)

Setting up a PEREC with an employer top-up satisfies this obligation while building a structural HR advantage — unlike the PPV, which employees perceive as a one-off payment. For more detail, see our article on the value-sharing obligation for companies with 11 to 49 employees.

The employer top-up on a PEREC is subject to two cumulative limits. First limit: 16% of the annual PASS, i.e. €7,689.60 per employee per year (2026 PASS = €48,060). Second limit: the top-up cannot exceed three times the employee's voluntary contribution during the year.

On a PEE, the cap is 8% of the PASS, i.e. €3,844.80. The two envelopes can be combined: an employee may simultaneously benefit from a PEE top-up and a PEREC top-up, each within its own cap.

The employer top-up is fully deductible for corporate income tax purposes, exempt from employer and employee social contributions, and excluded from the social charge base for companies under 50 employees. It is one of the rare HR tools that concentrates fiscal advantages on both sides of the employment relationship.

No new PERCO plan has been permitted since 1 October 2020. Existing PERCO contracts entered into before that date continue to have legal standing and may still receive contributions. Migration is therefore not mandatory — but it is strongly recommended.

Why migrate?#

The PEREC offers several features the PERCO lacks: more flexible fractional lump-sum exit at retirement, the ability to consolidate all employee rights (voluntary contributions, employer top-up, profit-sharing, incentive scheme) into a single plan, a modernised legal framework under Ordinance no. 2019-766, and typically a broader fund range.

In practice: PERCO → PEREC migration steps#

1. Employer decision: company agreement or amendment to the existing agreement, or a DUE where no union representation exists.
2. Transfer of accrued rights: rights built up in the PERCO are transferred into the 'voluntary contributions' compartment of the PEREC, with no immediate tax consequence.
3. Asset manager selection: migration is an opportunity to renegotiate fees and upgrade the fund range.
4. Employee notification: legal notice period of three months before the migration takes effect.
5. Administrative filing: submission to the DREETS and registration with the asset manager.

The full cost of a migration (legal advisory, transfer processing fees, internal communication) typically ranges from €2,000 to €8,000 depending on company size and the complexity of the existing agreement.

A PEREC can be established through two legal routes depending on the company's labour relations setup.

Typical timeline: from decision to first enrolments (3 months)#

• Weeks 1-2: select the asset manager — request for proposals with at least three submissions (Amundi, Eres, Natixis, Crédit Mutuel AM).
• Weeks 3-4: choose the fund range (defensive/balanced/dynamic, SRI options) and draft the plan rules.
• Weeks 5-8: negotiate or draft the company agreement or DUE.
• Weeks 9-10: CSE information and consultation where applicable.
• Week 11: signature and DREETS filing.
• Week 12: employee communication, enrolment opening.

Indicative costs: setup fees often waived by the asset manager (€0 to €5,000); annual management fees between 0.5% and 1% of assets under management (borne by the employee); legal advisory fees between €1,500 and €5,000 depending on complexity.

Profile: services company, 35 employees, €1.8M annual payroll, average annual net taxable profit of €280,000 (15% of turnover). The company has exceeded the 1% of turnover threshold for three consecutive years: it has been subject to the value-sharing obligation since 1 January 2025.

Chosen parameters:

• Employer top-up: €800 per employee per year, conditional on a minimum employee contribution of €200 (4:1 match ratio).
• Estimated enrolment rate: 60% in year 1, rising to 80% by year 3.

Year 1 calculation:

• Enrolled employees: 35 × 60% = 21.
• Total top-up: 21 × €800 = €16,800.
• Social charge: 0% (under 50 employees) → gross cost = net cost = €16,800.
• Corporate tax saving at 25%: €16,800 × 25% = €4,200.
• Net post-tax cost: €12,600 for an HR benefit of €16,800 delivered to employees.

In comparison, a gross bonus of €800 paid to each of the 35 employees would have cost €800 × 35 × 1.41 ≈ €39,480 in total labour costs, with employees receiving only €500 to €550 net each after social contributions and income tax. The PEREC with top-up is two to three times more cost-effective per euro invested by the company.

A Parisian engineering firm (48 employees, €6M turnover, average net profit of €120,000 over three years) reached the value-sharing obligation threshold in 2025. The HR team's first instinct was a one-off PPV. Our analysis showed that a PEREC with a €500 top-up (conditional on a €250 employee contribution) was more effective: net post-tax cost of roughly €14,000 per year, lasting benefit for 40 employees, stronger employer brand. Setup by DUE took ten weeks. The firm simultaneously signed a simplified incentive scheme under the fast-track procedure available since 2023.

Employee savings form an ecosystem in which each device serves a distinct purpose.

• Incentive scheme (intéressement): variable bonus tied to performance criteria (revenue, margin, satisfaction). Paid in cash or channelled into the PEE/PEREC with full exemption from employer social contributions (excluding forfait social).
• Profit-sharing (participation): mandatory above 50 employees, calculated by the statutory formula. Placeable in the PEREC with identical fiscal treatment.
• Value-sharing bonus (PPV): exempt from social contributions and income tax up to €3,000 (€6,000 if an incentive agreement is in place). Immediate benefit but perceived as one-off. See our PPV 2026 guide.
• PEREC: employer top-up on voluntary employee contributions. Structural benefit, visible in hiring negotiations.

For more on incentive and profit-sharing schemes, see our guide on intéressement and participation for SMEs 2026.

Setting up a PEREC means selecting a financial partner for two or three decades. Most SMEs focus on setup cost — often waived — and overlook ongoing fees and service quality.

An extra 0.3 percentage points of annual fees over 30 years represents roughly 8% less capital at retirement. On a €50,000 balance that exceeds €4,000 of lost savings. Assess each proposal on: fund expense ratios (TER), availability of a capital-secure monetary fund, quality of the employee portal, processing time for early-release requests, and modalities for fractional lump-sum exit at retirement.

URSSAF audits employee savings plan compliance during standard inspections. The four most common risk areas:

• Agreement validity: effective DREETS filing and conformity with the standard model.
• Top-up cap: any excess above 16% of the PASS or the 3× rule is reintegrated into the social contribution base.
• Conditional contribution rule: a top-up paid without a prior employee contribution is reclassified as salary subject to full social charges.
• Default lifecycle fund (gestion pilotée): compulsory under the PACTE law — its absence may disqualify the tax benefits.

For entities under 50 employees, the 0% forfait social applies automatically. Crossing the 50-employee threshold activates the 20% rate from the following financial year — headcount monitoring is therefore essential.

• Value-sharing diagnosis: am I in scope (11-49 employees, net profit ≥ 1% of turnover, three consecutive years)?
• Plan choice: PEREC alone, PEE + PEREC combination, or PER-OB for executives?
• Top-up level: fixed amount or match rate (e.g. 100% of employee contribution up to €1,000/year)?
• Implementation mode: company agreement, DUE or employee ratification?
• Request for proposals: minimum three asset managers, with TER analysis.
• PERCO migration: audit of accrued rights, transfer agreement, employee notice.
• Internal communication: employee information kit, FAQ, information session.
• Multi-year roadmap: incentive scheme / profit-sharing / PPV / top-up — what sequence?
• Headcount monitoring: approaching the 50-employee threshold triggers forfait social review.

Updated 2026-06-14. This article is for information purposes and does not replace personalised professional advice. For your specific situation, consult a qualified chartered accountant (expert-comptable inscrit à l'Ordre).