Ordinance No. 2020-385 amending the deadline and conditions for payment of the exceptional purchasing power bonus relaxes the conditions for payment of the exceptional purchasing power bonus as initially provided for in Article 7 of the Law of 24 December 2019 on financing Social Security for 2020 .
On a temporary basis, any employer may, until August 31, 2020 , pay their employees whose income does not exceed 3 times the amount of the minimum wage an exceptional bonus, tax-free and exempt from social security contributions, under the following conditions:
- By unilateral decision, up to an amount of 1,000 euros;
- By way of profit-sharing agreement, up to an amount of 2,000 euros.
When implemented, this bonus must apply to all staff, based on the principle of equal treatment.
However, the employer may adjust the amount of this bonus between employees based on remuneration, classification level, actual attendance during the past year or the working hours stipulated in the employment contract.
Ordinance No. 2020-385 of April 1, 2020 added a new modulation criterion which is linked to the working conditions of employees during the health crisis.
In other words, the employer will be able to pay more, under this bonus, to an employee who is required to travel daily as part of their professional activity (in particular delivery drivers, cashiers, security guards, etc.).
The exceptional purchasing power bonus, known as PEPA, is an optional bonus that was introduced in 2019 following the "yellow vest" movement in order to increase the purchasing power of private sector employees whose income does not exceed 3 times the amount of the minimum wage.
The law of December 24, 2019, on financing Social Security for 2020, made the payment of this bonus conditional on the existence of a profit-sharing agreement within the company or on the negotiation of such an agreement.
As part of the fight against the Covid-19 epidemic, Ordinance No. 2020-385 of April 1, 2020, temporarily relaxed the conditions for payment of said bonus.
