As we sayin France ‘il est urgent de ne rien faire’ which translate as it is urgent not to do a thing.
On the 10th Emmnuel Macron president of France announced that employers will be able to pay there employees a bonus free of charge and income tax for the end of the year
One week later this is what we know :
- The bonus will be free of contributions and income tax within the limit of €1000.
- The exception will be limited to employees earning less than €3600 net per month.
- The payment of the bonus will not be mandatory.
- This bonus can’t be paid in replacement of another bonus normally paid to the employees.
- The exemption will be applicable to bonuses paid from the 11th ofDecember to the 31st of March (providing that it is compliant with all the previous conditions).
To be fair it is not much.
We don’t know if the bonus must be paid in a onetime payment or if it can be paid over the months from December to March.
We don’t know how the net salary limitation of €3600 is calculated. Is it over the last 12 months or just in the month of the payment?
And we don’t know how it should be labeled or set up into our payroll systems.
The law regarding this bonus should be presented to the cabinet on the 19th. We should know more once it is done.
However, what we will then know may not be final as the law will have to be voted by the 2 chambers. And it may very well bechanged before it is voted.
That is why,there is no rush at all and ‘il est urgent de ne rien faire’.