Extended deadline for hiring subsidies

Under the “customized solution to every young job seeker” plan (“1 jeune 1 solution”), the government is mobilising more than 6 billion euros to facilitate the entry of young job seekers into the labor market.

Thus, employers who recruit young job seekers under the age of 26 on a permanent employment contract or on a fixed-term employment contract of at least 3 months may receive a financial assistance of up to €4,000 per contract signed since August 1st, 2020. However, the employee’s remuneration should not exceed twice the hourly amount of the minimum wage (approximately a gross salary of €3,110 per month in 2021) for a full-time employment contract.

In practice: This assistance must be requested, within 4 months of the employee taking office, via the teleservice of the Service and Payment Agency.

In addition, the amount of the financial assistance for hiring young job seekers under the age of 26, who live in one of those priority neighborhoods defined under the government’s urban policy, is temporarily increased. Employment contracts signed since October 15, 2020 benefit from this scheme. So, for a full-time job, the employer will receive €17,000 over 3 years for each permanent employment contract or €8,000 over 2 years for each fixed-term employment contract of at least 6 months. (In normal times, the financial assistance is €15,000 over 3 years for a permanent employment contract or €5,000 over 2 years for a fixed-term employment contract).

In practice: The employer must file his application for assistance with the French Job Centre (Pôle Emploi) within 3 months of the date of signing of the employment contract.

Initially, the two measures were provided only for employment contracts signed until January 31, 2021. Good news, the government approved a two-month extension. Now, they apply also to employment contracts signed until March 31, 2021.