money, home, coin-2724235.jpg

The cost-of-living crisis: how can you help your employees?

The cost of energy has exploded in France, as in many countries, concerning electricity, gas, petrol etc.

With inflation rising too, improving the purchasing power of employees while limiting costs for the employer has become a major issue.

Here are some ideas that the employer can explore to face these challenges:

(a) Giving employees a pay rise or a specific “one-off” payment or allowance.

Under French law, the employer can pay specific bonuses which benefit from tax and social security contributions exemptions, such as:

  • Profit-sharing bonuses;
  • The “value-sharing” bonus, which is an incentive introduced by the French government to encourage employers to pay an additional annual bonus to their employees.

(b) Favoring remote working, in order to:

  • Limit employees’ travel and their fuel consumption;
  • Limit the employer’s energy consumption on site.

In such a case, the employer can compensate the employees’ additional remote working costs (i.e. heating, internet, electricity).

(c) Proposing better reimbursement of sustainable travel costs

This is made possible by the French “sustainable mobility package”, with a maximum reimbursement of 800 euros per year for employees who justify they use sustainable means of transportation (bike, public transport, car-pooling, electric scooter, etc.).

(d) Offering financial support for sports and cultural activities

Such benefits can also benefit from specific tax and social security contributions exemptions.

(e) Granting a loan or a guarantee to their employees.