France has introduced changes to profit/value-sharing rules and new ESG requirements for employee savings plans (PEE and PER). From 2025, companies with over 10 FTEs and meeting profit criteria must implement a profit-sharing mechanism, such as profit-sharing agreements, incentive agreements, or value-sharing bonuses, though preferential tax treatment for the Value Sharing Bonus will become more restricted unless paid into approved savings plans. Additionally, from July 2024, PEE and PER plans must offer at least one investment option aligned with energy, ecological, or socially responsible criteria, alongside the mandatory socially responsible fund.
