Employer participation in the construction effort (CEP)

Verified 15 May 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Companies with 50 or more employees are required to invest in housing by paying a contribution called "Employer Contribution to the Building Effort" (CEP), also known as the 1% housing. This contribution corresponds to 0.45% payroll.

Any company must pay the employers' contribution to the building effort (CEIP) when the following 2 conditions are met:

  • It shall be subject to payroll tax.
  • She has a staff of 50 or more.

FYI  

Companies in the agricultural sector must contribute to the participation of agricultural employers in the construction effort (PEAEC).

Calculation of the number of employees

The number of employees is calculated according to the "social security" counting rules, i.e. by taking into account all establishments , on the previous calendar year.

The average annual number of employees (AEM) is taken into account for the calculation of the CEEP. It corresponds to the average number of persons holding an employment contract during the each month of the preceding calendar year.

The average annual headcount (AOM) is calculated on 1er January of year N, from the average number of staff measured each month of year N-1.

In practice, the number of employees in year N-1 determines whether the employer is subject to the obligation to invest in housing construction in year N.

Example :

The 2023 workforce is therefore used to determine whether the employer must pay the CEEP in 2024.

FYI  

For details on how headcount is calculated, see the dedicated card.

Variation in the staffing threshold

Exceeding the threshold of 50 employees up shall be taken into account after 5 years consecutive civilians. When the strength drops below threshold of 50 employees, the company shall again 5 years prior to being subject to the CEEP.

Example :

If the threshold of 50 employees is crossed 1er january 2023, and then established for 5 consecutive years, the company will be subject to the CEEP by 2028.

If the company is subject to the CEEP, it must pay a minimum participation of 0.45% remuneration paid in the previous year (N-1).

We must take into account the total amount of taxable remuneration (salaries, employee contributions, bonuses, bonuses, allowances, etc.) and benefits in kind paid to persons employed in year N-1.

However, the following hires are excluded from the calculation of the CEEP:

  • Those made in employment support contract
  • Those carried out by workshops and insertion sites in CSD: titleContent and eligible for payment of the State aid. The exemption relates to the share of remuneration less than or equal to Smic: titleContent and shall apply for the duration of the award of the State aid.

FYI  

A simulator is used to check whether the company is subject to the CEEP based on its workforce. It is also used to calculate the CEEP amount.

CEEP Simulator

The company subject to the PEEC may either carry out direct investment in favor of employee housing, i.e. payments to collecting agencies.

Such investments or payments shall be made within one-year period from the end of the previous calendar year. That period shall expire on 31 December of the year following that in which the remuneration is paid.

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Direct investment

The company may choose to carry out investments in favor of the housing of its employees.

These may be direct investments such as:

  • Loans at reduced rates granted to employees to finance the construction of the principal residence or that of their spouse, their ascendants or descendants
  • Investments in construction of rental housing or in improvement work of old company-owned buildings rented or intended to be rented to employees. These investments require a prefectural authorization and are exceptional.

Payment to a collecting agency

The company pays the participation directly to the single collecting agency “Action Logement Services”. This payment takes the form of an interest-free loan or a grant.

The collecting body then issues the employer a receipt.

For tax purposes, the grants thus paid to this body are deductible taxable profit or loss.

The company reports the payroll and the amount of the CEEP due for the next year in the registered social declaration (DSN) of the December month.

The December NSN must be filed on one of the following dates:

  • on 5 January where the company employs less than 50 employees
  • or on 15 January when the company employs 50 or more employees.

Nominative Social Declaration (DSN)

FYI  

As a matter of tolerance, the data reported in the December NSN may be reported by January, which is filed by February 5 or 15.

How to declare PEEC in DSN?

Net-companies.fr

Pour en savoir plus

Example :

The amount of investment to be devoted to the CEEP for 2023 is at least 0.45% 2022 compensation payments, and was reported via the DSN January 2024.

Where the company has not made the necessary investments or has not invested sufficiently, it must pay a contribution from 2%.

This contribution shall be calculated on the amount of wages for which the investment obligation has not been fulfilled.

The company must complete a remittance slip no. 2485-SD on which the amount of the contribution is shown:

Remittance slip (TA-FPC-PEEC) Apprenticeship tax, participation in continuing training and construction effort

This voucher shall be accompanied by of payment of the contribution.

It shall be handed over to the EIS: titleContent by 30 April each year.

Who shall I contact

Please note

An aid sheet for the calculation of the contribution of 2%appears on the payment slip.

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