Since October 1, 2019,a new type of retirement savings plan has been available to companies, offering additional advantages for employees and employers alike:
the PER (plan d’épargne retaite in French). The PER has replaced the former PERCO (plan d’épargne pour la retraite collectif) and “Article 83” plans.  

What is a voluntary contribution?

Some companies also give employees the opportunity to convert their vacation days and/or time off in lieu into a cash amount. Employees can then invest that amount into their PER. Up to ten days of paid leave and/or time off in lieu can be converted each year. The cash amount is not taxable.

What is a matching contribution?

As part of their employee benefits policy, companies can choose to “match” employees’ payments into the group PER plan. Employers can contribute an additional amount up to three times that of the voluntary contribution made by the employee.

What are the advantages of a voluntary contribution ?

“By making a voluntary contribution, employees can reduce the taxes they pay today while also increasing their future retirement income. They can also put their savings toward the purchase of their primary residence. And by opting for scheduled contributions every month, quarter or half-year, employees can build up their savings without feeling the pinch,” says Marie-Pierre Ravoteur, head of company-sponsored retirement savings at AXA France.

Voluntary contributions regularly increase the balance of the employee’s group retirement savings plan and, ultimately, the amount of the annuity or lump sum payment received upon retirement.

Voluntary contributions to PER plans are deductible from taxable income, unless another option has been chosen.

Note that a maximum deductible amount (1) applies to all contributions to individual and group retirement savings plans, combined.

(1)This maximum amount is indicated on French income tax notices.