French CESU vouchers

French CESU vouchers for childcare and domestic services: an insight

Incentives and Employee benefits can not only help to increase the motivation of your employees; they can also help to attract and retain talent. Nowadays employees do not only consider the salary. For an employment offer to be competitive, incentives and benefits are essential.
In France, common incentives are meal vouchers and tax free employee gift cards for events like Christmas. The sustainable mobility allowance in France aims to promote the use of eco-friendly means of transport. Incentives like holiday vouchers and CESU vouchers are less common.

French CESU vouchers for childcare and household services

Especially French CESU vouchers for childcare and domestic services can set your company apart as not many employers in France offer them. With CESU vouchers you can offer your employees access to services they may otherwise not afford. They help your employees to balance their professional and personal life. As such, they can improve the well-being of your employees. They will also enhance your employer brand which becomes more and more important, especially in labor markets with shortage of qualified staff.
Besides, French CESU vouchers for childcare and domestic services are very interesting from a financial point of view as they are exempt from contributions and taxes. With payroll taxes in France being up to about 45%, employers should consider offering them to their employees.

What are French CESU vouchers?

CESU stands for ‘Chèque Emploi Service Universel’, translating to Universal Employment Service Voucher. CESU vouchers are special payment titles that allow employees to finance all or part of a range of services including childcare and domestic help.

What can be financed with CESU vouchers?

The employee can use the CESU vouchers to pay approved companies and associations providing childcare and domestic services:
– Family assistance: Childcare (nursery, nanny, babysitter, after school activities, etc.), tutoring at home
– Domestic help: Cleaning, ironing, gardening, small maintenance jobs, home lessons (e.g. IT, languages, etc.), petsitting, etc.
– Addiction counselling
– Help for the elderly, disabled or dependent (e.g. preparation of meals, delivery of meals)

CESU vouchers: exempt from contributions

An amount of up to €1830 per year per employee is fully exempt from social contributions and taxes.
French companies can also benefit from a corporate tax credit of 25% of the before mentioned amount.

How are CESU vouchers financed?

The employer can finance 100% of the voucher, opposed to other incentives like restaurant tickets which can only partially be financed by the employer.

How to set up CESU vouchers?

All companies can offer CESU vouchers to their employees. The tickets can be ordered through companies like Edenred and Sodexo. They usually take a small fee for their service.

Do you wish to set up optional incentives and benefits for your employees? We provide a large range of Payroll Services in France including setting up CESU vouchers for our clients.