First adopted in December 2018 as part of the law on economic and social emergency measures (MUES), the exceptional purchasing power bonus was renewed last July to reward employees most heavily mobilized during the health crisis. What are the eligibility criteria? How much is it worth? All the answers.
What is the exceptional purchasing power bonus?
The purchasing power bonus, also known as the "Macron bonus" or PEPA, is a scheme that enables an employer to pay an exceptional bonus to one or more employees.
Given the success of this scheme, the amended Finance Act for 2021, enacted on July 19, provides for its renewal, albeit with a few differences compared with the premium paid prior to confinement.
Who is eligible for this exceptional bonus?
The exceptional purchasing power bonus may be granted to all employees who have signed an employment contract with the company or who work for a public institution. However, only employees whose remuneration over the 12 months prior to payment of the bonus was less than three times the monthly SMIC, i.e. 4663.74 euros gross, are eligible. Temporary workers and disabled workers are also eligible, under certain conditions.
What are the benefits for the employer?
The Macron bonus is exempt from income tax and any social security contributions or levies if the following conditions are met:
- The scheme must be covered by a company agreement or a unilateral employer decision (DUE);
- The bonus must be paid between June 1, 2021 and March 31, 2022 ;
- The bonus cannot replace a pay rise provided for in a company wage agreement.
The exemption applies to income tax, social security contributions, training contributions, apprenticeship tax and construction tax, up to a limit of 1,000 euros per beneficiary.
If the company has set up a profit-sharing agreement or has fewer than 50 employees, the bonus is exempt under the same conditions, up to a maximum of 2,000 euros.
Possibility of adjusting the amount of the bonus
The amount of the exceptional purchasing power bonus can be modulated, depending on the beneficiary, according to several criteria: remuneration, classification level and actual working time during the previous year, or the working time stipulated in the employment contract. Working conditions related to the Covid-19 epidemic are no longer included in the modulation criteria.
It is up to employers to take the necessary steps to implement this exceptional bonus if their company and employees are concerned. Employers who wish to do so can seek assistance from their DREETS (Directions régionales de l'économie, de l'emploi, du travail et des solidarités).