The profit premium is the distribution to employees, in the form of money, of a certain proportion of the profit for the financial year after tax.
This is a collective bonus for the benefit of all the company's employees (the amount of which is fixed or equal to an identical percentage of remuneration). Nevertheless, it is possible to grant different amounts to different employees (this is known as a “categorized” bonus). In this case, the distribution of the amounts must be determined on the basis of objective criteria. In addition, these criteria may not lead to a differentiation in the benefits granted to different employees greater than a ratio of between 1 and 10.
Specific terms, conditions and procedures apply to the granting of a profit premium within the company.
The profit premium is explicitly excluded from the notion of remuneration and is therefore not subject to normal social security contributions. On the other hand, it is subject to a solidarity contribution of 13.07%, payable by employees.
Worker Taxations Description
The profit premium is the distribution to employees, in the form of money, of a certain proportion of the profit for the financial year after tax.
This is a collective bonus for the benefit of all the company's employees (the amount of which is fixed or equal to an identical percentage of remuneration). Nevertheless, it is possible to grant different amounts to different employees (this is known as a “categorized” bonus). In this case, the distribution of the amounts must be determined on the basis of objective criteria. In addition, these criteria may not lead to a differentiation in the benefits granted to different employees greater than a ratio of between 1 and 10.
Specific terms, conditions and procedures apply to the granting of a profit premium within the company.
The employee receiving the profit premium is liable only to a 7% tax on the amount of the bonus (after deduction of the 13.07% solidarity contribution).
Employer Deductibility Description
The profit premium is the distribution to employees, in the form of money, of a certain proportion of the profit for the financial year after tax.
This is a collective bonus for the benefit of all the company's employees (the amount of which is fixed or equal to an identical percentage of remuneration). Nevertheless, it is possible to grant different amounts to different employees (this is known as a “categorized” bonus). In this case, the distribution of the amounts must be determined on the basis of objective criteria. In addition, these criteria may not lead to a differentiation in the benefits granted to different employees greater than a ratio of between 1 and 10.
Specific terms, conditions and procedures apply to the granting of a profit premium within the company.
Profit premiums are non-deductible professional expenses for the employer.
