the “Macron bonus” partly replaced salary increases

According toNational Institute of Statistics and Economic Studies (INSEE), there was indeed a real windfall effect: a third of the amount of the bonuses replaced real salary increases. In other words, out of 100 euros in bonuses paid, normally there should have been 30 euros in salary increases. But employers have preferred bonuses because it costs them less. Because these value-sharing bonuses, commonly called Macron bonuses, are exempt from tax and contributions – within the limit of a payment of up to 3,000 euros, and up to 6,000 euros, for companies that signed a profit-sharing agreement.

These bonuses are attractive in the short term, especially in times of inflation. They are exempt from tax (for employees earning up to three times the minimum wage). But in the longer term, it’s another story: because they are not taken into account for pension rights, a bias often highlighted by unions. And a bonus, unlike a salary increase, is not permanent, nothing says that you will have it the following year. In 2022, nearly five million employees received this bonus, i.e. 30% of all employees, with an average amount paid which slightly exceeds 800 euros. Nothing says that they will have it this year, a year where inflation promises to be still very high.

Companies have widely used these bonuses

It is also a loss for public finances because it means a loss of contributions to fund our social system, including pension plans. However, we know that he is far from being in great shape. The same on the tax side, there are millions of euros less because the loss is substantial: INSEE notes that in total almost 4.5 billion euros have been paid via these “Macron bonuses”. While small businesses have made massive use of this scheme – as well as large groups: even those which have posted record profits, such as Total, LVMH, etc. – they have made extensive use of these bonuses and thus avoided the payment of taxes and social contributions. The device is still in force until the end of next December.