the 6e The Personnel Saving Week will be held from March 28 to April 1, 2022. The aim of this market initiative: to provide employees and companies with objective, instructive and practical information. And encourage VSEs and SMEs to set up these systems.
Employee savings is an investment “almost like any other”: through theshare profit and a little participationYour company may pay amounts, sometimes not negligible, to involve all employees in the company’s performance and results and offer them an advantageous savings framework. In 2021, more than 11 million people will benefit from a salary savings scheme.
An educational site to understand everything!
An educational site has been created to help employees and business leaders better understand the different mechanisms and their benefits. You will find practical articles, infographics, videos… as well as the events organized by all partners. Finance for All is taking an active part this week, together with the AMF, the AFG, the Ministries of Economy and Labor and all partners (professional associations and asset managers).
Pacte Law: the success of the PER . collective
According to the latest figures from the Association Française de Gestion (AFG), with the introduction of the PER Collectif, 3.4 million holders have pension product as part of their business (including former PERCO scheme). In 2021 we will also notice a growing share of voluntary employee payments (+24%), especially for pension plans. † Approval of the new PER Collectifs as a retirement preparation tool confirmed, with continued increase in deductibles (54% of total) explains Dominique Dorchies, chair of the AFG’s Employee Savings and Retirement Commission. By contrast, bonuses paid for profit-sharing and profit-sharing decreased by an average of 8% compared to last year, due to the impact of the crisis caused by Covid-19.
In addition, the effects of the Pacte Act and, in particular, the abolition of the social package are being felt: in VSEs-SMEs, the material increase compared to 2020 (+6%).
Finally, and given the sharp fall in short-term interest rates, we can only be satisfied with a better distribution of savers’ investments within employees’ pension savings: the share of money market funds fell sharply, from 21% in 2013 to 13% in 2021.
Encouraging employee savings in VSEs and SMBs
Employees of large groups are the main beneficiaries of savings, as participation is mandatory for more than 50 employees. Only 32% of VSE/SME employees say they have benefited from employee savings compared to 70% in large companies† The abolition of the social package for small businesses should make it possible to democratize these devices. After all, under the Pacte Act, VSEs are completely exempt from the social package on the amounts paid. The amounts paid as profit sharing are exempt from the social package for SMEs with fewer than 250 employees.
Save or Collect: Questions to Ask
In general, you will receive your profit-sharing and/or participation form in April. So you have to ask yourself the right questions: should you collect this money immediately, which is subject to income tax, or invest in order to be able to tax more cheaply? And if you decide to invest, which savings plan is most interesting for you? VYou prefer the PEE for your medium-term projects (the amounts are blocked for 5 years), or the PER Collectif if you want to prepare for your retirement† As a reminder, there are many cases of early release.
If you invest your employee savings, the company may also pay you a matching contribution, which completes your payments. Mechanically this increases the return on your savings!
Finally, if you left your company in 2021, know that you receives the distributed profit-sharing and participation in proportion to the past months†