Profit-sharing top-up ("labour dividend") with the same exemption regime

Articles 1 and 2 of the Act of 30 December 2006 on the development of employee profit-sharing and share ownership create a "labour dividend". New Article L. 444-12 of the Labour Code allows the board of directors, management board or company head to pay a top-up of incentive pay (intéressement) or of the special profit-sharing reserve (participation) for the closed financial year, within legal caps and according to the allocation rules of the agreement. The top-up receives the same social and tax exemptions as intéressement (Article L. 441-4) and participation (Article L. 442-8). The act, published in the Official Journal of 31 December 2006, applies from 1 January 2007.