The exceptional purchasing power bonus is renewed in 2021

The exceptional purchasing power bonus has been renewed by the amended finance law for 2021 published in the Journal Officiel on July 20, 2021. This so-called "Macron" bonus allows employers to pay employees earning less than three times the Smic a bonus exempt from tax and social security contributions. In 2021, it benefits in particular the workers of the "second line" particularly involved during the health crisis.

This bonus is exempt from tax, social security contributions and fees, up to a limit of €1,000, which can be increased to €2,000 if a profit-sharing agreement is signed or for workers in the second line of work if measures are taken to increase their salary. It is also excluded from the calculation of the activity bonus and for the allocation of the disabled adult allowance (AAH).

To be eligible for social and tax exemptions, the bonus must meet the following conditions:

• it benefits employees linked to the company by an employment contract, temporary workers made available to the company or public employees of a public industrial and commercial establishment (EPIC) or a public administrative establishment (EPA) on the date of its payment;
• it benefits employees whose remuneration is less than 3 times the amount of the Smic (over the 12 months preceding its payment);
• it is paid between June 1, 2021 and March 31, 2022;
• it cannot replace an increase in remuneration or a bonus provided for by a wage agreement, the employment contract or a customary practice in force in the company or public establishment;
• the bonus is capped at €1,000 in companies that have not signed a profit-sharing agreement;
• the bonus is capped at €2,000 in companies that have signed a profit-sharing agreement, in companies with fewer than 50 employees or for second-line workers if measures to upgrade their jobs are undertaken.

Good to know: Second-line workers are all workers other than medical professions who have been in contact with public during the health crisis: cashiers, urban space cleaners, maintenance workers, home help, construction workers, etc.