By Dorothée Pierry / Updated November 6, 2024
This bonus can be paid at the initiative of employers to thank their employees for their efforts throughout the year. It is important to not to confuse this bonus with the 2024 Christmas bonus paid by Caf and France Travail, intended for the most modest households and financed by the State.
The Christmas bonus paid by companies, for its part, is a private, optional initiative and depends on the choices of each employer or the collective agreements in force.
Find in this article a complete overview of the corporate Christmas bonus: how it works, the eligibility conditions, the amount, and whether or not this bonus is compulsory.
What is the corporate Christmas bonus?
The corporate Christmas bonus, also called end-of-year bonus or annual bonus, is a financial reward paid by certain companies to their employees as the end of year holidays approach.
Unlike the CAF Christmas bonus, which is a social measure intended for people with modest incomes, the corporate Christmas bonus is a voluntary initiative which is not required by law. Some companies pay it based on their financial results, company policy or even branch agreements and collective agreements in force.
The amount, frequency and terms of allocation of this bonus can therefore vary widely from one company to another.
In some companies, it is part of the traditional and expected benefits every year, while in others, it may be exceptional or even non-existent. Do not hesitate to find the bonuses provided for by your collective agreement on the official website code.travail.gouv.fr.
What types of end-of-year bonuses are possible?
In addition to the Christmas bonus itself, several types of end-of-year bonuses can be paid to employees, and this depends on the internal policy of each company, collective agreements or even branch agreements.
So, as an employee, you may be entitled to:
- Prime Macron : officially called “Value Sharing Bonus” (PPV), this bonus was put in place to improve the purchasing power of employees. Extended until December 31, 2026, it allows companies to pay a bonus exempt from social contributions and tax under certain conditions. The terms and limits of this bonus may change each year, but it remains a popular bonus to reinforce support for employees during the holidays. Find all the useful information in our article dedicated to the Macron Bonus.
- The 13th month : in certain companies, notably those governed by specific collective agreements, employees benefit from a 13th month. This premium, which corresponds to an additional month of salary, is often paid in one go in December, January or February, but can also be paid in several installments as a supplement to the monthly salary. It often allows employees to improve their purchasing power as the Christmas holidays approach. However, she is not not obligatory and depends on agreements between employers and employees.
- Other bonuses and benefits offered by the employer: some employers choose to offer non-financial benefits to reward their employees at the end of the year, such as gift vouchers or vouchers. This type of reward is often exempt from charges under certain conditions and allows employees to benefit from a boost for their Christmas spending.
Good to know: unlike the CAF Christmas bonus, end-of-year bonuses paid by the employer are taxablebecause they are considered elements of remuneration (apart from the PPV).
Who are the beneficiaries of the company end-of-year bonus?
The allocation of the corporate Christmas bonus is left at the discretion of employers.
It can be distributed uniformly to all employees, or be subject to specific criteria. These award criteria vary between companies and may include, for example, the seniority of the employee, on professional category (manager, employee, worker), and the individual or collective performances.
Some companies therefore favor employees with a certain amount of seniority, or those who have contributed to important projects or exceptional financial results.
In other cases, bonuses are distributed equally to avoid inequalities within the company.
Please note: you can benefit from an end-of-year bonus whether you are on permanent contract, fixed-term contract, part-time or full-time. Likewise, if you are alternating in a company, you in principle benefit from the same benefits as other employees and can therefore receive the Christmas bonus paid by the employer. On the other hand, very often, people on internship do not benefit from end-of-year bonuses.
How much is the employer Christmas bonus?
The amount of the corporate Christmas bonus is not set by law and can therefore vary widely.
It depends on several factors, including the size of the company, its financial health and the agreements concluded between employers and employees.
In some companies, the bonus can represent a lump sum, for example a few hundred euros, while in others it can be calculated as a percentage of gross salary monthly or annual for each employee.
For large companies with solid financial results, this bonus can reach higher amounts, while small companies, with fewer resources, often pay more modest amounts or do not grant a bonus.
In general, the amount of the corporate Christmas bonus is communicated to employees at the end of the year, so they can benefit from it in time for the holidays.
Good to know: the end of year bonus is subject to social contributions. Therefore, to know its net amount, you must deduct approximately 22% of payroll costs of its gross amount. In all cases, the amount received as an end-of-year bonus must appear on your pay slip.
Is the end-of-year bonus obligatory?
It is essential to remember that the corporate Christmas bonus is not not a legal obligation.
Its implementation depends entirely on company policy, applicable collective agreements or company agreements. If no collective agreement or contract provides for this bonus, the employer has no obligation to pay it.
Conversely, if the payment of such a bonus is provided for in the employment contract or a collective agreement, the employer has a legal obligation to pay it.
Finally, in certain cases, a company may be required to pay this bonus if it has established a repeated practice over time.
In labor law, a repetitive practice can be considered as “use” and thus becomes an acquired advantage for employees. In this case, the company must respect the terms of this use, unless it first informs employees of a deletion or modification of the conditions of this bonus.
Do not hesitate to consult these articles:
Who is entitled to the company Christmas bonus?
The corporate Christmas bonus is awarded at the discretion of each employer. Some can distribute it to all employees, while others apply eligibility criteria such as seniority, professional category or individual performance. Check with your HR department or company agreements to see if you are eligible Read more.
When is the employer Christmas bonus paid?
The Christmas bonus, when granted by the company, is generally paid at the end of the year, often in December to coincide with the holidays. The precise date may vary depending on the company and internal agreements. Some companies inform their employees of payment dates in advance Read more.
How to ask for a Christmas bonus from your employer?
To request a Christmas bonus, you can contact your HR manager or your line manager. It is advisable to first check whether this bonus is provided in your company. Generally speaking, when a Christmas bonus is paid by the employer, it is a system provided for in the employment contract or by a collective agreement Read more.
How much is the end-of-year bonus?
The amount of the corporate Christmas bonus varies depending on the company and is not set by law. It can be calculated as a percentage of salary or as a lump sum, depending on the company’s internal policy and its financial health. Ask your HR department to find out your company’s practices Read more.
Is the Christmas bonus compulsory for employers?
No, the Christmas bonus is not compulsory in France. Its implementation depends on company agreements, collective agreements and the policy of each employer. However, if a company has got into the habit of paying this bonus over several years, this can be considered as “custom” and become a right for employees, provided that the employer has not informed in advance of a change Read more.
Photo credit: © Joaquin Corbalan / Adobe
Journalist/Editor, I have ten years of professional web and writing experience and have worked for the site aide-sociale.fr since 2017. My detailed knowledge of legal issues and the administrative and social system in France allows me to best inform the readers about their rights and useful steps depending on their situation.
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