Employment is a priority for the French government, which has introduced a number of measures to make it easier for companies wishing to expand to hire new staff. But before you can take advantage of these hiring assistance schemes, you need to know about them first 😉.
Here’s an update on existing hiring support schemes!
Employment aid news: the latest announcements
The latest news on the job market is of course marked by two key measures:
- Extension of financial aid for work-study contracts
- The creation of a professionalization contract for the long-term unemployed
Extension of financial aid for work-study contracts
The government is committed to apprenticeship, and the figures seem to bear it out, with 500,000 work-study contracts signed by 2020, an all-time record.
This led to an initial extension of the measure until December 31, 2021, and we have just learned that the aid for hiring apprentices will finally be maintained until June 30, 2022.
As a reminder, this state aid consists of a bonus of a total of €8,000 (€5,000 in the case of hiring a minor) per alternating work-study student, paid monthly, and forms part of the “1 young person, 1 solution” plan mentioned below.
The creation of a professionalization contract for the long-term unemployed
Youth employment is a priority, but other categories are not forgotten, particularly the long-term unemployed.
Hiring a jobseeker over the age of 45 under a professionalization contract now entitles you to state aid of up to €2,000, which can also be combined with the flat-rate Pôle Emploi aid of €8,000.
Hiring aids: what are the schemes provided by the Ministry of Labor and Pôle Emploi?
As part of the drive to revitalize the French labor market, successive governments have introduced numerous measures to facilitate hiring.
Employment aids for young people
The “1 Jeune 1 Solution” plan, designed to help young people enter the job market, is probably the best known to the general public. In fact, there are several different measures to suit everyone’s needs:
- Apprenticeship bonus, from €5,000 to €8,000, for hiring a young person on a sandwich course.
- Professionalization bonus, from €5,000 to €8,000, for hiring a young person under 30 on a professionalization contract.
- Ecological” bonus, for hiring a young person on a VTE (Volontariat Territorial en Entreprise) program as part of a project linked to the energy and ecological transition.
- Help with hiring a CIEJ (Contrat Initiative Emploi Jeune) in the commercial sector, in the form of partial financing of the salary, up to a maximum of €8682.
- Support for hiring under the PECJ (Parcours Emploi Compétences Jeunes) scheme in the non-profit sector.
- Exceptional support for youth employment, up to €4,000 per year
- Support for VTA (Volontariat Territorial en Administration) in rural areas of €15,000 for young graduates)
- 7,000 annual grant for youth and popular education projects (FONJEP post)
- Assistance of up to €12,000 per year for the recruitment of young people in sports associations.
Aid for hiring specific employees
Of course, employment aids are not just for young people. Many other categories of employees are also eligible:
- Support for the recruitment of disabled people (RQTH: Reconnaissance de la Qualité de Travailleur Handicapé), up to a maximum of €4,000.
- 2,000 grant for hiring jobseekers over 45 on professionalization contracts.
- 2,000 grant for hiring jobseekers over 26 on professionalization contracts.
- Reduction in employer contributions for thehiring of “small salaries“ (less than €2543 gross per month), better known as the “Fillon law”.
- The CUI (Contrat Unique d’Insertion) and CAE (Contrat d’Accompagnement dans l’Emploi) schemes provide financial assistance from the state of up to 95% of the SMIC hourly rate for hiring people who are having difficulty finding work.
- Exemption from employer contributions for hiring seasonal workers in the agricultural sector.
Employment aids in geographical areas experiencing economic and social difficulties
Last but not least, government employment assistance schemes are also designed to boost the labor market in priority geographical areas.
- Tax exemption for companies located in ZFU-TE (Zone Franche Urbaine – Territoire Entrepreneurs) and hiring local workers.
- Exemption from social security contributions and taxes in ZRR (Zone de Revitalisation Rurale) areas when hiring new employees, depending on the nature of the business and the number of employees.
- Exemption from taxes and contributions in BER (Bassin d’Emploi à Redynamiser) areas when setting up or expanding a business and taking on new employees.
- Exemption from property tax (CFE and TFPB) for a company located in a QPV (Quartiers Prioritaires de la Ville – Priority Urban Neighborhoods)
- Exemption from taxes (IR, IS, CFE, etc.) and social security contributions (sickness, old age, etc.) for companies located in the ZRD (Zone de Restructuration de la Défense).
Source : service-public.fr
How can I take advantage of hiring incentives as a company?
There are numerous measures in place to facilitate employment and business growth. They often prove decisive in the decision to take on new staff, and enable the business to develop with less risk.
However, it is difficult for small and medium-sized businesses to find their way through all the existing schemes:
- Lack of communication on available aid
- Lack of information on award criteria
- Cumbersome administrative procedures
And yet, these companies (VSEs and SMEs) are the first to benefit from these recruitment subsidies, which represent a real opportunity for development!
According to Matthieu SALPERWYCK of LexiPaie, a good knowledge of hiring subsidies is a fantastic opportunity to hire at lower cost. Consulting a payroll service provider such as LexiPaie can be a particularly useful way of identifying profiles eligible for assistance, and making substantial savings in the process.
Lexipaie is a consulting firm specialized in payroll, working with accounting firms in France. Lexipaie is also the Social / Payroll partner of Altermès.
📞 Would you like to know if your company is eligible for certain types of aid? Are you wondering whether certain hirings can be subsidized? Contact the Altermès teams!
👆 Would you like to find out more about our digital accounting services for small businesses and start-ups?
The Lexipaie / Altermès teams are at your disposal to answer your questions and help you seize the opportunities offered by the government’s measures to boost the job market.