The PERCOL (Plan d’Epargne Retraite Collectif) and the PEE (Plan Epargne Entreprise) are two systems that can be set up for employees and their managers. While they can both be fueled by incentive and participation bonuses, their advantages and taxation diverge. Find out all you need to know about PEE and PERCOL below.
PERCOL and PEE: two employee savings schemes
Since the end of the 1960s, private companies in France have been encouraged to set up employee savings schemes for their employees. If this approach is mandatory in companies with more than 50 employees, very small and medium-sized enterprises can also benefit their employees.
The principle is relatively simple. The company pays profit-sharing or profit-sharing bonuses to its employees. The latter then have the opportunity to place them in employee savings plans such as a PEE or a PERCOL. The sums paid are then blocked (except in exceptional cases) for at least 5 years for a PEE and until retirement for a PER. A note that the employee may also voluntarily make payments on its employee savings plan. The company can also increase it, we then speak of matching.
What are the differences between a PEE and a PECOL?
The PEE allows the employees of a company but also the employer to save collectively via a portfolio of securities. The saver has the possibility of withdrawing the sums paid after a period of 5 years or before in certain exceptional cases such as the purchase of a principal residence for example.
The many advantages PERCOL for the company , also called the collective PER he came PERCOs replace the 1 st October 2019 after the enactment of the Law Covenant. Unlike the PEE, the sums paid are blocked until the day the saver retires. All companies, even the smallest, have the possibility of setting up a PERCOL for their employees.
The taxation of PERCOL and PEE
The PEE presents an attractive tax framework. The sums resulting from the participation, the incentive or the contribution are exempt from income tax on the condition that they are paid into the Company Savings Plan.
The PERCOL leads to the abolition of the social package on payments for profit-sharing for companies with less than 250 employees. The social package is also abolished for companies with less than 50 employees on payments for profit-sharing, participation or matching. Employees benefit from a tax deduction on entry for voluntary payments, from a tax exemption on entry and exit for sums resulting from profit-sharing, participation and matching .