Finance Glossary

PEE (CompaQu'est ce qu'un PEE ?ny Savings Plan)

What is a PEE?

The PEE (Company Savings Plan) is a savings plan offered by a company to its employees.
It allows any employee of a company that has adopted this collective savings system to build savings invested in FCPE shares benefiting from favorable tax conditions.
In return, the savings are locked in for a minimum period of 5 years, except in the case of specific unlocking situations: purchase or expansion of the primary residence, marriage, birth of the third chiQuel est le champ d'application d'un PEEld, departure from the company, death...

A PEE can receive funds from profit-sharing, employee profit participation, contributions decided by the employee themselves, and any additional matching contributions from the company.

What is the scope of a PEE?

Any company can set up an Employee Savings Plan (PEE).

A PEE can also be established within a group of companies, in which case it takes the form of a Group Savings Plan (PEG).

It can also be common to several companComment mettre en place un PEEies (inter-company agreement), and then takes the form of an Intercompany Savings Plan (PEI).

How to set up an Employee Savings Plan (PEE)

A Company Savings Plan can be established either:

– By collective agreement.

– By agreement between management and the authorized representatives of representative trade union organizations.

– By agreement within the Social and Economic Committee (CSE).

– By ratification by a two-thirds majority of the staff upon joint request of the company head and the trade union organizations or the CSE when at least one of these bodies exists.

– By unilateral decision of the company head:

if there is no CSE (The CSE is mandatory if the workforce reaches at least eleven employees for twelve consecutive months) or no trade union delegate,
or if a CSE and/or trade union delegate exists but negotiations with the staff have failed. The CSE is then consulted on the draft plan regulations at least 15 days before its submission to the administrative authority.

The Company Savings Plan must be filed with the Regional Directorate for Economy, Employment, Labor and Solidarity (DREETS), exclusively in digital form via the Ministry of Labor’s oQuels sont les avantages du PEE pour l'entreprisenline procedure platform (www.teleaccords.travail-emploi.gouv.fr).

What are the advantages of the PEE for the company?

– Employer contributions deductible from taxable profit and exempt from employer social security charges.

– Exemption from social contribution tax on:

Employer contributions and profit-sharing paid by companies with fewer than 50 employees.
Profit-sharing only, paid by companies with fewer than 250 employees.
Employer contributions paid by the company in addition to employees' voluntary payments in an employee share ownership scheme (L.214-165) for the years 2021, 2022, and 2023.

– Social contribution tax at 10% instead of 20% on unilateral employer contributions made to acquire company shares or investment certificates.

– Employee retention and motivation by allowing them to build savings under preferential conditions.

What are the benefits of the PEE for the beneficiaries?

– Possibility of company matching contributions that increase employees' savings.

– Matching contributions not subject to income tax within the exemption limits.

– Exemption from tax on capital gains and income, excluding social contributions.

– Coverage of certain account maintenance fees and, if applicable, entry fees by the company.

– Possibility to keep savings in the PEE beyond the lock-in period. Employees continue to benefit from social and tax exemptions. The portion of their assets that becomes available can be reimbursed at any time upon request.

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