Following the Yellow Vests Movement, employers were granted the option to pay to their employees a bonus exempted from any and all social security contributions and taxes, the so-called “purchasing power extraordinary bonus” (hereafter: “PPEB”), under strict conditions.

Law n°2019-1446 dated 24 December 2019 has then maintained this option while adapting its terms of payment. Lastly, Order n°2020-385 dated 1st April 2020 has softened the conditions for setting up and granting this bonus, taking into consideration the current health crisis, in order to encourage employers to paying such a bonus to their employees.

See the document