Optimization of bonuses

Participative Bonus (Art. 115-13a L.I.R.)
An employer may grant certain employees a so-called participative bonus, allowing them to benefit from a 50% income tax exemption on part of the bonus, provided that specific conditions are met.

• Maximum amount: The bonus may not exceed 25% of the employee’s annual gross remuneration (and this threshold increased to 30% starting in 2025).
• For the employer: The total amount of participative bonuses granted cannot exceed 5% of the positive profit of the previous financial year (raised to 7.5% as of 2025).

Interest Subsidy / Interest Relief (Art. 115-22 L.I.R.)
An employer may also grant an employee a preferential-rate loan (interest relief / bonification) or reimburse the interest on their mortgage or personal loan (subsidy). Within certain limits, this support is exempt from income tax and social security contributions:

Applicable ceilings (for a taxpayer taxed individually):

• Mortgage loan: up to €3,000 tax-exempt
• Personal loan: up to €500 tax-exempt
  For jointly taxed households, the ceilings are doubled: up to €6,000 and €1,000 respectively. This scheme requires the employer to keep a supporting file (contract, statements, etc.).

Young Employee Bonus (Art. 115-13d L.I.R.)
Starting from tax year 2025, a new benefit allows employees under 30 years old, holding their first permanent employment contract (CDI), to receive a partially tax-exempt bonus (up to 75% exemption) under certain conditions.
Annual ceilings based on gross remuneration:

• ≤ €50,000: up to €5,000
• €50,001 to €75,000: up to €3,750
• €75,001 to €100,000: up to €2,500