Company Collective PER (PERECO): Complete Guide 2026

The Company Collective PER (PERECO), successor to the former PERCO, is one of the most advantageous retirement savings schemes in the French landscape. Its strength lies in a unique mechanism: employer matching (abondement), effectively "free money" that can triple the employee's contribution. Established by the PACTE law of 2019 to gradually replace the PERCO, the PERECO benefits from an attractive tax and social framework for both employer and employee. Yet many employees fail to take full advantage of this scheme, due to unfamiliarity with its rules or lack of strategy in allocating their employee savings.

What is the Company Collective PER (PERECO)?

The PERECO is a collective retirement savings plan established by the employer for all company employees. It constitutes compartment 2 of the PER, dedicated to employee savings. Unlike the individual PER (compartment 1) which each saver opens on their own initiative, the PERECO is a company scheme whose access is conditional on being part of the workforce.

The PERECO's major asset is employer matching: a supplementary contribution from the employer added on top of the employee's contributions. This matching can reach 300% of the employee's contribution, capped at 7,418 euros per year in 2026 (16% of the PASS, i.e. 16% of 46,368 euros). This is an unbeatable instant return from any other investment.

Access conditions for the PERECO

The PERECO is open to:

All employees of the company, with a maximum seniority requirement of 3 months
Company directors of companies with 1 to 250 employees (corporate officers, managers)
Former employees who can continue contributing after leaving if no PERECO is available at their new employer (without matching in this case)

Setting up the PERECO in the company

The PERECO is established by collective agreement between employer and employee representatives, by ratification of two-thirds of staff, or by unilateral employer decision in the absence of a union representative or CSE. Since the enhanced incentives of the PACTE law and the extended social exemptions for SMEs, an increasing number of companies with fewer than 50 employees are setting up a PERECO.

Sources of PERECO funding

The profit-sharing bonus, linked to company results or performance, can be allocated to the PERECO within 15 days of notification to the employee. This allocation is exempt from income tax (profit-sharing received in cash would be taxed under the progressive scale). However, CSG-CRDS of 9.7% applies in all cases, whether invested or received in cash.

2. Participation

Mandatory in companies with 50 or more employees, participation is a redistribution of a fraction of company profits. Allocated to the PERECO, it is exempt from income tax and locked in until retirement. It is a regular flow that, combined with matching, allows the accumulation of significant capital over a career.

3. Voluntary contributions

Employees can make contributions from their personal savings. These contributions are deductible from taxable income within the standard PER cap: 10% of professional income from year N-1, with a minimum of 4,637 euros (10% of the 2026 PASS) and a maximum of 37,094 euros (10% of 8 PASS). This cap is shared with the individual PER.

4. Transfers from other plans

The PERECO can receive transfers from the PEE/PEI (limited to half of available funds, except in the 5 years preceding retirement), from CET (Compte Epargne Temps) entitlements up to 10 days per year, or from unused rest days (10 days maximum per year in the absence of a CET).

5. Employer matching: the decisive lever

Employer matching is the employer's voluntary contribution that supplements the employee's contributions. Key features:

Cap: 300% of the employee's contribution, capped at 7,418 euros per year (2026)
Optional: the employer is not obliged to match, but if they do, they must treat all employees equally
Variable rate: the matching rate can vary depending on the contribution source (profit-sharing, participation, voluntary contributions)

Worked example: Elodie, 35, communications manager

Elodie, 35, is a communications manager at a mid-sized company (ETI) with 180 employees. Her annual gross salary is 48,000 euros. Her company offers a PERECO with 200% matching capped at 4,000 euros annual matching. Elodie is also entitled to profit-sharing of 3,200 euros and participation of 1,800 euros.

Elodie's optimal strategy:

She allocates 2,000 euros of profit-sharing to the PERECO -> 200% matching = 4,000 euros (cap reached)
She allocates the remaining profit-sharing (1,200 euros) and participation (1,800 euros) to the PEE to maintain 5-year liquidity
Total invested in the PERECO by Elodie: 2,000 euros -> Total actually invested with matching: 6,000 euros

Summary:

Immediate return from matching: +200% on her 2,000 euros
Income tax saving on invested profit-sharing: 640 euros (30% TMI x 3,200 euros base excluding CSG)
Over 30 years (until 65) at 5% average return, the 6,000 euros/year invested will generate a capital of approximately 418,000 euros

Taxation of employer matching

Employer matching benefits from a particularly advantageous tax and social regime:

For the employee: exempt from income tax, subject only to CSG-CRDS of 9.7% (withheld at source)
For the employer: exempt from social charges (except the 16% forfait social for companies with more than 50 employees). The forfait social is reduced to 0% for companies with fewer than 50 employees on profit-sharing and participation, reinforcing the scheme's attractiveness for SMEs.

PERECO investment options

The PERECO generally offers a diversified range of investment options: equity funds (France, Europe, global), bond funds, money market funds, diversified funds, and sometimes FCPEs invested in company shares. The most recent contracts also provide access to responsible investment options (ISR, ESG).

Default managed allocation

Since the PACTE law, target-date managed allocation (gestion pilotee a horizon) is the default management mode. If the employee makes no explicit choice, their savings are automatically allocated according to their retirement horizon:

Far from retirement (over 10 years): up to 80% in dynamic assets (equities)
5-10 years from retirement: gradual shift toward less risky assets
Near retirement (under 2 years): minimum 70% in low-risk assets (bonds, money market)

The employee retains the option to switch to self-directed management at any time and choose their own allocation across the available funds.

PERECO withdrawal conditions

PERECO savings are in principle locked in until retirement. Six early withdrawal cases are provided by law:

Purchase of a primary residence: applicable to voluntary contributions and employee savings (profit-sharing, participation, matching). This is the major innovation of the PER compared to the former PERCO.
Disability of the holder, their spouse or children (category 2 or 3)
Death of spouse or PACS partner
Exhaustion of unemployment benefits
Over-indebtedness
Cessation of self-employed activity following judicial liquidation

Comparison between PERECO and PEE: the key differences
Criterion	PERECO	PEE
Lock-in period	Until retirement	5 years
Matching cap	7,418 euros (2026)	3,709 euros (2026)
Early withdrawal cases	6 cases + primary residence	10+ cases (marriage, birth, etc.)
Exit method	Lump sum or annuity	Lump sum only
Tax on gains at exit	PFU 30% or 17.2% social levies depending on source	17.2% social levies only
Default managed allocation	Yes (mandatory)	No
Employer forfait social (>50 employees)	16%	20%

PERECO exit taxation

Lump sum withdrawal

Taxation depends on the source of funds:

Deducted voluntary contributions: contributions are subject to the progressive income tax scale, capital gains to the PFU of 30% (or progressive scale option).
Profit-sharing / Participation / Matching: contributions are exempt from income tax at exit (they were already exempt at entry). Only capital gains bear social levies of 17.2%.

This regime is more advantageous than compartment 1 for deducted contributions, since employee savings exit without income tax.

Life annuity withdrawal

Deducted voluntary contributions: the annuity is taxed under the pension regime (progressive scale after 10% allowance).
Profit-sharing / Participation / Matching: the annuity is taxed under the RVTO regime (life annuity for valuable consideration), with a taxable fraction based on age (40% between 60 and 69, 30% from 70 onwards).

The 2026 matching cap in detail

The PERECO matching cap is set at 16% of the PASS, i.e. 7,418 euros in 2026 (PASS 2026 = 46,368 euros). This cap applies per calendar year and per employee. It is separate from the PEE matching cap (8% of PASS, i.e. 3,709 euros). An employer can match both the PEE and PERECO simultaneously, bringing total matching to 11,127 euros per year per employee. This is a considerable salary benefit that deserves to be maximized.

PERECO optimization strategies

Maximize matching: the absolute priority

The first rule is to contribute enough to trigger the maximum match. A 200% match represents an instant 200% return, far exceeding any other investment. Even if you need to borrow or dip into your emergency fund to contribute, matching almost always justifies the effort.

Concretely, identify the contribution amount that triggers the maximum match and make sure you contribute it every year. If matching is 200% capped at 4,000 euros, you only need to contribute 2,000 euros to get the maximum.

Coordinate PERECO, PEE and individual PER

The coordination between these three schemes should follow a priority order:

PERECO: contribute first to maximize matching (instant return)
PEE: if the company also matches the PEE, contribute next to capture that additional matching
Individual PER: top up with voluntary contributions for the tax deduction, if your TMI is 30% or above

The tax deduction cap is shared between the individual PER and PERECO voluntary contributions. Profit-sharing and participation invested in the PERECO do not consume this cap (they are exempt from income tax by nature, not deductible).

Transfer to an individual PER when leaving the company

When you leave the company, transferring your PERECO to an individual PER is often a smart move. Online PERs like Linxea Spirit PER, PER Placement-direct or PER Nalo generally offer a broader investment universe (ETFs, SCPI, high-performing euro funds), lower management fees (0.5 to 0.6% versus 0.8 to 1.2% for employee savings account keepers), and a more modern management interface.

Transfer is free if the PERECO is over 5 years old, and capped at 1% of the balance below that. The fiscal history of contributions is preserved, which is essential for exit taxation.

Use the PERECO for primary residence purchase

Since the PACTE law, amounts from voluntary contributions and employee savings in the PERECO can be withdrawn for primary residence purchase. For young employees who benefit from generous matching, the PERECO can serve as a savings vehicle for building a property deposit while capturing employer matching. The instant matching return more than compensates for exit taxation.

The most common PERECO mistakes

Not capturing the matching: this is free money. Every euro not contributed to capture the maximum match is a return permanently lost.
Staying in managed allocation without checking the profile: the default managed allocation may not match your risk profile. A 30-year-old employee in a "prudent horizon" profile is missing out on the return potential of equity markets.
Forgetting to transfer when you leave: a PERECO left at a former employer continues generating fees and becomes difficult to track. Consolidate your holdings in a single individual PER.
Confusing deductibility and exemption: profit-sharing and participation contributions are not deductible from taxable income -- they are exempt from income tax by nature. Only voluntary contributions are deductible, within the shared cap.
Receiving profit-sharing in cash by oversight: without an explicit choice within the 15-day deadline, profit-sharing is paid in cash and subject to income tax. Set up automatic allocation to the PERECO as soon as you join the company.

Watch the profit-sharing allocation deadline

You have 15 days after being notified of your profit-sharing amount to choose its allocation (PERECO, PEE, or cash payment). After this deadline, the profit-sharing is automatically paid in cash to your bank account and subject to income tax. Set up a default allocation choice as soon as you join the company so you never miss this deadline.

Conclusion

The PERECO is an exceptionally powerful retirement savings tool thanks to employer matching, which delivers an immediate, guaranteed return. The optimal strategy is clear: maximize matching by prioritizing your profit-sharing and participation there, then top up with voluntary contributions if the matching cap is not reached. Monitor investment options and adjust managed allocation to your profile. When leaving the company, transfer to a high-performing individual PER to optimize fees and management. PERECO matching, along with the individual PER tax deduction, is the most powerful lever for preparing a comfortable retirement.

The information contained in this article is provided for informational purposes only and does not constitute investment advice. The caps and rates mentioned are those in force in 2026 and may change. Consult your HR department and a financial advisor for an analysis tailored to your situation.