Preferential rates on company products

The reduction which the employer grants to his employees on the normal price of certain products or services is exempt from social security contributions under the following cumulative conditions:

a) it must concern discounts on products that the employer manufactures or sells or reductions on services that the employer provides;

b) the quantity of products sold or services provided to each employee must not exceed the normal consumption of the employee's household. The employer must be able to prove that he has brought this condition to the attention of his workers;

c) the discount must not exceed 30% of the normal price. The normal price is the price that the employee would have had to pay as a consumer if he were not employed by the employer who manufactures or sells the product or provides the service. If the employer does not offer products or services directly to individual consumers, the normal price is that which a consumer with a profile comparable to that of the employee would have to pay in the retail trade. The question of the normal price to be taken as a reference may be debated;

d) the price paid by the employee after deduction of the discount is not to be lower than the cost price of the product or service.

Where the discount exceeds 30% of the normal price, regular social security contributions are payable on the amount of the discount that exceeds 30% of the normal price.

Where the discount is less than 30% of the normal price but the price paid by the employee is less than the cost price, social security contributions are payable on the difference between the price paid by the employee and the cost price.