French Value Sharing Bonus (PPV) 2026: employer guide for UK HR teams

Updated: 25 May 2026 — Reviewed by Samuel HAYOT, registered French expert-comptable (chartered accountant).

If you manage French payroll or advise employees based in France, you have likely encountered the term "prime Macron". As of 2026, this label refers exclusively to the prime de partage de la valeur (PPV), the value sharing bonus made permanent by French law n° 2023-1107 of 29 November 2023, following its introduction under law n° 2022-1158 of 16 August 2022 (the "purchasing power act").

The "Macron bonus" has no independent legal status. Using that name in French payroll documents, salary letters or employer notices is technically incorrect. The applicable mechanism is the PPV.

Direct answer. In 2026, the PPV ceiling is €3,000 per employee per calendar year (or €6,000 if a profit-sharing or employee savings agreement is in place). For companies with fewer than 50 employees, payments to staff earning below 3 times the French minimum wage (SMIC) are fully exempt from social contributions, CSG/CRDS levies, and French income tax — within the applicable ceiling and until 31 December 2026.

The original exceptional purchasing power bonus (PEPA), nicknamed "prime Macron", ran from 2018 to 2022 as a series of temporary, crisis-driven measures. The August 2022 law replaced it with a permanent scheme: the PPV. The November 2023 law added a transitional favourable regime for small companies and lower-wage employees, running from 1 January 2024 to 31 December 2026.

For UK-based HR teams, the practical consequence is that any communication, payroll instruction, or employment letter referring to a "Macron bonus" should be updated to reference the PPV and its current legal basis.

Eligible employers: all private-sector employers in France, regardless of size. Certain public employers with private-law staff (industrial and commercial public entities) also qualify.

Eligible employees: any employee with an employment contract at the time of payment; temporary agency workers on assignment; and, in specific frameworks, workers at sheltered employment establishments (ESAT).

There is no minimum tenure requirement. An employee hired the week before the payment date is eligible.

The exemption regime differs depending on whether the employee's gross remuneration over the 12 months preceding payment is above or below 3 times the French minimum wage (SMIC). This threshold must be calculated precisely — it is not based on the current monthly figure alone but on the full 12-month gross pay history.

The ceiling is per calendar year, per employee. If the PPV is paid in instalments during the year, the combined total must not exceed the applicable ceiling. Any excess is treated as ordinary salary and subjected to full social contributions and income tax.

Key point for UK HR: the social contribution exemption applies to all companies regardless of size, but the income tax and CSG/CRDS exemptions are restricted to the transitional regime. After 31 December 2026, absent new legislation, the PPV will revert to being subject to income tax and CSG/CRDS for all employees, while retaining the social contribution exemption within the ceiling.

French employees on UK-based payrolls processed through a French entity or PEO arrangement will have the PPV processed through the French payroll system. The French employer of record is responsible for the correct exemption calculation, the payroll code, and the social declaration (DSN).

For UK HR teams overseeing French compensation policies:

• Do not communicate the PPV as "tax-free" without qualification — it depends on company size, employee salary level, and the applicable period.
• The PPV cannot substitute for a salary increase that was already announced, agreed under a collective agreement, or established by company practice (usage). Substitution is prohibited by law and triggers reclassification as ordinary wages on URSSAF audit.
• If your French entity has fewer than 50 employees and wants to offer the highest possible net benefit to staff earning under 3 SMIC, the current transitional period until end of 2026 is the optimal window.

The PPV must be established either by a unilateral employer decision (DUE) signed before payment, or a collective agreement. For most companies, the DUE is the simpler route.

The DUE must specify:

• the amount or calculation method;
• the payment date;
• the scope of beneficiaries;
• any modulation criteria (if different amounts apply to different employee groups).

Permitted modulation criteria: remuneration level, job classification, seniority, contractual working hours, effective presence during the period. Subjective criteria (individual merit without a defined grid) are not listed and create legal exposure.

A DUE template based on outdated PEPA models from 2020-2022 is not compliant. The document must reference the current legal basis (loi n° 2022-1158 and loi n° 2023-1107).

Accessing the €6,000 ceiling requires an intéressement (profit-sharing) or voluntary participation agreement that is signed, filed with the relevant authority (DREETS or via the TéléAccords platform), and in force at the time of payment.

A profit-sharing agreement under negotiation does not qualify. The agreement must be effective.

For UK HR teams working with French entities that do not yet have such agreements, setting one up unlocks the higher PPV ceiling and brings additional benefits (employer and employee tax incentives on intéressement payments). Our guide on SME profit-sharing and participation 2026 covers the mechanics in detail.

A UK-headquartered company has a French subsidiary with 35 employees. The parent wants to pay a €2,000 bonus to all French staff as recognition for a strong year.

Key checks:

• Effectif < 50: transitional regime applies.
• 30 employees earn under 3 SMIC → full exemption (no charges, no CSG/CRDS, not taxable in France) within the €3,000 ceiling.
• 5 employees earn over 3 SMIC → still exempt from employer and employee social contributions, but CSG/CRDS and French income tax apply.
• No intéressement agreement in place → €3,000 ceiling applies. The €2,000 payment is within the limit.
• The DUE must be drafted and signed before the payment date. It must reference the correct legal basis and specify that all employees present on the payment date are included.
• The HR team should confirm that the €2,000 does not replace a salary review that was already communicated to employees or required under the applicable collective agreement (convention collective).

The transitional regime expires at year-end 2026 unless extended by legislation. After that date:

• The social contribution exemption (employer and employee) within the €3,000/€6,000 ceiling is expected to remain.
• The income tax and CSG/CRDS exemption will no longer apply, meaning net-to-employee value decreases.
• Companies wishing to maintain the same net benefit for employees will need to increase the gross amount — which changes the cost calculation.

HR and finance teams should model this change now when planning 2027 compensation budgets.

• Prime de partage de la valeur PPV 2026 — guide complet employeur
• Are bonuses taxable in France?
• French profit-sharing and participation for SMEs — 2026 guide

This article is provided for information purposes only. It does not constitute legal or tax advice. Rules and thresholds are subject to change — verify current conditions with official French sources or a qualified expert-comptable before making a decision.