Preamble
Employers can benefit from various recruitment aids to reduce the cost of recruitment.
As such, you will find below the overview of the aid in force for 2024:
- Aid for hiring a jobseeker.
- The general reduction of employers’ contributions on low wages.
- Aid for hiring a disabled worker.
- Recruitment aid in areas in difficulty.
- Aid for work-study hiring.
- The favourable social regime for young innovative companies.
- Aid for entertainment companies.
1. Aid for hiring a jobseeker
The purpose of the Single Integration Contract (« contrat unique d’insertion » CUI in French) is to facilitate the professional integration of unemployed people experiencing particular social and professional difficulties in accessing employment.
This is an aid that combines training and support in two versions:
– The employment support contract (CUI-CAE in French) in the non-market sector for employers contributing to the unemployment insurance scheme.
– The initial employment contract (CUI-CIE in French) in the commercial sector.
- This aid, paid by the Services and Payment Agency (ASP in French), is calculated according to a percentage of the statutory minimum wage per hour worked, within the limit of the legal weekly working time (47% of the gross amount of the minimum wage per hour worked in the case of a CIE; 95% of this amount in the case of a CAE).
2. The general reduction of employers’ contributions on low wages
The general reduction in employer contributions (formerly known as the “Fillon reduction”,or called “zero Urssaf contributions”) aims to reduce employer contributions for salaries not exceeding 1.6 times the minimum wage, i.e. 2,827.08 euros gross per month.
The reduction is calculated per employee by applying a coefficient to the employee’s gross annual remuneration.
An employer cannot combine this general reduction with another exemption from employer contributions.
3. Aid for hiring a disabled worker
Companies with at least 20 employees are required to hire disabled workers in a proportion of 6% of their workforce.
To this end, various aids are offered to enable employers to set up the necessary arrangements for the reception and maintenance of disabled workers.
The granting of this aid is provided by the Association for the Management of the Fund for Professional Integration (Agefiph in French) and is granted according to eligibility criteria and available resources.
Thus, various aids are offered:
– Assistance with reception, integration and professional development.
– Assistance in adapting work situations.
– Assistance in finding solutions to maintain employment.
– Training aid in the context of job retention.
– Assistance with hiring under an apprenticeship or professionalization contract;
– Employment assistance for disabled workers (AETH).
4. Aid for hiring in areas in difficulty
There are recruitment aid schemes for companies located in certain geographical areas experiencing socio-economic difficulties:
– Rural revitalization zones (ZRR).
– Defence Restructuring Zones (ZRD).
– The city’s priority districts (QPV).
Companies can benefit from the “free employment” aid by hiring an employee living in a priority district of the city policy on a permanent or fixed-term contract for a period of at least 6 months.
The list of territories concerned is set by decree (Arr. 30 March 2018, NOR: MTRD1805870A: Official Journal, 31 March).
The amount of financial aid for the recruitment of an employee in full-time employment is equal to:
- €5,000 per year, up to a maximum of 3 years, for permanent recruitment.
- €2,500 per year, up to a maximum of 2 years, for a fixed-term contract of at least 6 months.
5. Aid for work-study hiring
Work-study contracts (apprenticeship or professionalization) allow companies to recruit employees who follow a work-study program with reduced hiring costs.
Since 30 April 2024, professionalization contracts are no longer eligible for the maximum €6,000 in aid.
On the other hand, apprenticeship contracts concluded between 1 January 2023 and 31 December 2024 remain eligible for the aid for hiring an apprentice.
The amount of this aid is a maximum of 6,000 euros for an apprentice regardless of age.
This aid is intended for companies with fewer than 250 employees, without conditions, and for companies with more than 250 employees, on the condition that they undertake to reach a threshold of work-study contracts or contracts promoting professional integration in their workforce by 31 December of the year following the year in which the contract was concluded.
On the other hand, the remuneration of apprentices’ benefits from the general reduction in contributions reinforced since 1 January 2019. The exemption from employee contributions specific to apprenticeship contracts in the private sector is maintained but limited to 79% of the SMIC in respect of the month in question.
Finally, the hiring of an apprentice recognized as a disabled worker allows the employer to benefit from specific aid that can be combined with the exceptional aid for the hiring of a work-study student.
6. A favourable social regime for young innovative companies (“jeunes entreprises innovantes”)
A new company that invests in research and development can have the status of a young innovative company (“Jeunes entreprises innovante” in French),and will be able to benefit from specific social exemptions.
To obtain young innovative company status, the company must meet the following conditions:
- Employ fewer than 250 people.
- Have a turnover of less than €50 million or a balance sheet of less than €43 million.
- 50% of the capital must be held continuously by either: a natural person, another JEI held at least 50% by natural persons, an association or foundation recognized as being of public utility of a scientific nature, a public research and teaching establishment or one of its subsidiaries, an investment company.
- Carry out a new activity: not have been created in the context of a merger, restructuring, takeover or extension of already existing activities.
- Have been created for at least 11 years (if created before January 1, 2023) or 8 years (if created after January 1, 2023).
- Carry out research and development (R&D) expenses representing at least 15% of tax-deductible expenses.
Therefore, a young innovative company created before 31 December 2025 will be able to benefit from an exemption from employer social insurance contributions and family allowances (health, maternity, disability and death insurance contributions, capped and uncapped old-age insurance contributions, family allowance contributions).
To do this, the exemption applies within the limit of two ceilings:
- A first ceiling corresponding to the remuneration of the employee concerned, which must be less than 4.5 times the minimum wage.
- A second ceiling applicable per institution: The exemption applies in full within the limit of a total annual amount equal to 5 times the annual social security ceiling (Plafond annuel de la sécurité sociale in French) (€231,840 in 2024) for each beneficiary institution.
The remuneration concerned by these exemptions is that taken into account for the determination of the contribution base and paid to employees performing certain functions (engineer-researcher, technician, R&D project manager….). These exemptions may also be applicable to corporate officers, under certain conditions.
Please note that a principle of non-cumulation of aid applies for the same employee and over the same period of activity.
NB: A favourable tax regime may also apply to JEIs, under certain conditions.
7. Aid for entertainment companies
Companies and associations producing a live performance will be able to benefit from the employment aid for the artistic stage (APAJ in French) under certain conditions.
The amount differs according to the size of the venue in which the performance took place and the number of artists, up to a maximum of €22,000 per company per calendar year.
To do this, the company must meet the following 4 conditions:
- Have a receipt for the declaration of an entertainment entrepreneur.
- Have an annual turnover or balance sheet of less than or equal to 5,000,000 euros.
- Have been created at least 1 year prior to the date of the submission for which the assistance is requested.
- Be covered by the national collective agreement for companies in the private sector of the performing arts (IDCC 3090) or the national collective agreement for artistic and cultural companies (IDCC 1285).
The company or association must pay a minimum remuneration to each of the employees making up the artistic performance: 2583 euros gross for a monthly remuneration from May 1, 2023 or 123 euros per fee paid from May 1, 2023.
Finally, the room where the live performance is given must be able to accommodate up to 500 people.
For example:
A performance takes place in a room that can accommodate up to 700 people and a fee of 100 euros is paid to each employee. The aid will not be granted.
A performance takes place in a room that can accommodate up to 300 people, 3 artists perform and have a gross monthly salary of 2600 euros, a subsidy of 55.35 euros will be paid for each employee.
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This fact sheet contains summary information. Please contact us for advice tailored to your situation. We cannot be held responsible for misinterpretation.
Contact
Claire APPELGHEM
Hear of HR/Employment Law
Claire.appelghem@groupe-aplitec.com
01 40 40 38 38