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Employee Financial Participation in Companies’ Proceeds

IP/A/EMPL/ST/2011-02 - PE 475.098
Study requested by the European Parliament's Committee on Employment and Social Affairs

This study provides an overview of the development of employee financial participation (EFP) across the EU-27 and shows its positive dynamic between 2000 and 2009 despite the recent financial crisis. A comparison of the rules and regulations on general taxation, social security contributions and specific tax incentives for EFP schemes across the EU indicates that fiscal incentives are not a prerequisite to EFP but do promote the spread of these schemes. To provide transparency with regards to fiscal treatment of EFP schemes, effective tax rates on different schemes are presented. Eight cases were selected and analysed in order to identify the best practice and the obstacles to promoting best practice. As a result, this study proposes an alternative approach to a European framework, the “28th regime on Employee Financial Participation”.

author(s): ECORIS Nederland BV and CASE - Center for Social and Economic Research; J. Lowitzsch, I. Hashi; M. Caramelli, S. de Germay, A. Hashani, R. Koch, T. Neusel, E. Orlic, N. Spitsa, B. Cornils, J. Glowienka, S. Hanisch, P. Jarzynska, G. Kocsis, S. Kudert, J. Lakatoš, D. Lemmens, A. Vogel, A. Wojtkowski
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