One-off bonus of up to €1,000 per employee exempt from contributions where a pay agreement exists

Article 17 of the 2006 Social Security Financing Act allows companies covered by a sector or company pay agreement concluded between 1 January 2005 and 15 June 2006 and applicable in 2006 to pay all their employees a one-off bonus of up to €1,000 per employee, which may vary with pay, qualification, grade, seniority or length of service. The bonus is exempt from all statutory or agreed social contributions except CSG and CRDS, without compensation by the State. If paid into a company savings plan, it is exempt from income tax. The employer's decision had to be taken before 30 June 2006, the payment made by 31 July 2006 at the latest, and the URSSAF notified before 31 December 2006.