Value sharing scheme

With effect from 1 January 2025, the "Value Sharing" Act (Loi Partage de la Valeur) introduces, on an experimental basis and for a period of 5 years, an obligation in France to set up a value-sharing scheme in eligible companies with between 11 and 49 employees. 

This applies to companies with at least 11 employees that are not required to set up a profit-sharing scheme, i.e. those with fewer than 50 employees. When the company has made a net profit for tax purposes of at least 1% of sales for 3 consecutive financial years, it must, during the following financial year, without any constraint on the level of effort : 

• pay a value-sharing bonus or
• set up a profit-sharing scheme by agreement or unilateral decision or
• set up a participation scheme or
• fund an employee savings plan.

This obligation will apply to financial years beginning on or after 1 January 2025. The 3 previous financial years will be taken into account when assessing the condition relating to taxable profit. For a company whose financial year corresponds to the calendar year, the net taxable profit for the financial years 2022, 2023 and 2024 will thus be examined in order to trigger, where applicable, an obligation to share value during the financial year 2025.

If you have any questions or require further information, please do not hesitate to contact us.