Exceptional profit-related bonus exempt from social contributions, paid before 31 December 2005

Article 38 of Act No. 2005-842 of 26 July 2005 allows firms to pay their employees, by 31 December 2005, an exceptional profit-related bonus linked to 2004 results or performance. It is set by a specific agreement concluded before 30 September 2005 or, failing that, by the employer's unilateral decision, up to the more favourable of 15% of the intéressement paid for 2004 and €200 per employee (€200 per employee for firms without an agreement in force in 2004). The bonus is not remuneration under Article L. 242-1 of the Social Security Code and Article L. 741-10 of the Rural Code; it is deductible from the firm's taxable profit and exempt from income tax if the employee places it in a company savings plan.