Establishing collective savings in your structure allows you to connect your employees to company results and success. But how does such a device work? Also, does this apply to your employees on a mandatory basis or not? Find answers to many of your questions in this article.
Employee Savings: Presentation of the Concept
Many companies set up collective savings systems. This type of savings is known as “employee savings.” Two large groups of instruments make it up. The first group is made up of sources of funding that allow employees to build savings: profit-sharing, profit-sharing and employer matching. The second group, for its part, is made up of plans that will achieve this savings: company savings plans (PEIs), mass retirement savings plans (per collectif) and their inter-company variation (PEI and per coli).
How to Allow Your Employees to Build Employee Savings?
The two plans allow your employees to build employee savings as a bonus. There is profit sharing on the one hand and sharing on the other.
Incentive is the amount you give to your employees. It takes into account the performance of the company or the improvement in its results. Of course all companies can install this system, but its implementation remains optional. To learn more about setting up incentive bonuses, check out our blog post on the topic.
Participation is another employee savings plan. This involves redistributing part of your profits to employees. Its implementation is mandatory in any company with more than 50 employees.
On these bonuses, you can also set up a matching contribution that will supplement the amounts paid into the Employee Savings Plan. Employer contributions, such as profit-sharing and profit-sharing, tax benefits and social benefits for the employee and the company.
How to get money from employee savings?
When receiving their profit-sharing and/or profit-sharing bonus, the saver has a choice between receiving the amounts directly or placing them in an Employee Savings Scheme (PEE or Per Collectif). If collected immediately, the premium is taxable on the income. In case of investment, it is exempt from income tax. It will be available for PEE after 5 years and for per collectif at the time of retirement (except in case of early release).
