Hiring aids: what is the current situation?
- Accounting expertise
The announcement made at the beginning of September by Prime Minister Jean Castex on the extension of the aid scheme for the hiring of young people on apprenticeship contracts underlined the success of this measure.
Above all, it is a reminder that employment is a priority for the government, which has put in place several measures to facilitate hiring for companies wishing to invest in the future.
What are these employment aids that companies can take advantage of?
Here is an overview of the hiring support mechanisms available today.
The latest news on employment aid: the latest announcements
The news of the job market is obviously marked by two key measures, namely :
- 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 has made a commitment to apprenticeship, and the figures seem to prove it right, with 500,000 work-study contracts signed in 2020, an absolute record.
This had motivated 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 amount of €8,000 (€5,000 in the case of the hiring of a minor) per alternating worker, paid monthly, and is 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, especially the long-term unemployed.
The hiring of a job seeker over 45 years old under a professionalization contract now entitles him/her to a state aid of up to 2,000 €, which can also be combined with the flat-rate aid of 8,000 € provided by Pôle Emploi.
Hiring aids: what are the measures planned by the Ministry of Labour and Pôle Emploi?
Within the framework of the project of the dynamization of the labor market in France, the successive governments set up many measures aiming at facilitating the hiring.
Youth employment aids
The “1 Jeune 1 Solution” plan, aimed at facilitating the integration of young people into the job market, is probably the most widely known. It is important to know that there are actually several distinct measures to adapt to everyone’s needs:
- Apprenticeship bonus, from €5000 to €8000, for hiring a young person on a work-study program
- Professionalization bonus, from €5,000 to €8,000, for the hiring of a young person under the age of 30 on a professionalization contract
- Ecological” bonus for hiring a young person as a VTE (Volontariat Territorial en Entreprise) for a project related to the energy and ecological transition
- Aid for hiring in CIEJ (Contrat Initiative Emploi Jeune) in the commercial sector, in the form of partial financing of the salary, which can amount to 8682 €.
- Aid for hiring in PECJ (Parcours Emploi Compétences Jeunes) in the non-market sector.
- Exceptional aid for youth employment, up to 4000 € per year
- Assistance to VTA (Volontariat Territorial en Administration) in rural areas of 15 000 € for young graduates)
- Grant of 7000 € per year for a project in favor of youth and popular education (FONJEP post)
- Assistance of up to €12,000 per year for the recruitment of young people in sports associations.
Aid for the hiring of specific employees
Of course, employment assistance is not only for young people. Many other categories of employees can benefit from it:
- Aid for the recruitment of disabled people (RQTH: Recognition of the Quality of Disabled Worker), which amounts to a maximum of 4000 €.
- Aid for the hiring of jobseekers over 45 years of age in a professionalization contract, in the amount of 2000 €.
- Aid for the hiring of jobseekers over 26 years of age on a professionalization contract, amounting to €2,000
- Reduction of employer contributions for thehiring of “low salaries(less than €2543 gross per month), better known as the “Fillon Law
- The CUI (Contrat Unique d’Insertion) and the CAE (Contrat d’Accompagnement dans l’Emploi) allow for financial aid from the state of a maximum of 95% of the hourly rate of the SMIC for the hiring of people who have difficulty finding a job.
- Exemption from employer’s charges for hiring seasonal workers in the agricultural sector.
Employment aid in geographical areas facing economic and social difficulties
Lastly, the employment assistance measures put in place by the State also aim to boost the labour market in geographical areas defined as priorities.
- Tax exemption for companies located in ZFU-TE (Zone Franche Urbaine – Territoire Entrepreneurs) and hiring a local workforce.
- Exemption from social security contributions and taxes in ZRR (Zone de Revitalisation Rurale) for the hiring of new employees, depending on the nature of the activity and the number of employees.
- Exemption from taxes and contributions in the BER (Bassin d’Emploi à Redynamiser) in the context of an establishment or an extension leading to recruitment.
- Exemption from property taxes (CFE and TFPB) for a company located in the QPV (Priority City Districts)
- Tax exemption (IR, IS, CFE…) and social exemption (health, old age…) for companies located in ZRD (Zone de Restructuration de la Défense)
How can I take advantage of the hiring aid schemes as a company?
There are many measures in place to facilitate employment and business growth. They are often decisive in the decision to hire staff, and allow the business to develop with less risk.
However, it is difficult for VSEs and SMEs to find their way through all the existing schemes:
- Lack of communication on available aid
- Lack of information on award criteria
- Cumbersome administrative procedures
However, these companies (VSEs and SMEs) are the first to benefit from these recruitment aids, which represent opportunities for development!
According to Matthieu SALPERWYCK of LexiPaie, a good knowledge of hiring aids is a great opportunity to hire at lower cost. Consulting a payroll service provider such as LexiPaie can be particularly useful in identifying profiles eligible for aid and thus making substantial savings.
Lexipaie is a consulting firm specialized in payroll that works with accounting firms in France. Lexipaie is also the Social / Payroll partner of Altermès.
👆 Want to know if your company is eligible for certain grants? Wondering if some hires can be subsidized? It’s over here!
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 labor market.