As your business grows and develops, and your workload increases, the question arises of hiring your first employee. In addition to the recruitment process and the legal obligations linked to the contract, the costs are not negligible. Is there any financial aid available for recruiting your first employee?
General exemption: reduced social security contributions on low salaries
Many financial aid schemes have been abolished as of January 1, 2019. They have been replaced by a general reduction in employer contributions on low wages. This measure applies to companies contributing to the unemployment insurance scheme.
The general exemption applies to employees earning less than 1.6 SMIC, regardless of the contract or the number of hours worked. By extension, the scheme also applies to apprenticeship and professionalization contracts.
The reduction applies to :
- Contributions to sickness and maternity insurance, occupational injury and disease insurance, old-age, disability and death insurance.
- Family allowance and unemployment insurance contributions
- CSA and FNAL contributions
- Compulsory contributions under the Agirc-Arrco scheme
The scheme is degressive according to the employee's salary. The reduction in contributions is almost total at one SMIC (minimum wage). The reduction ceilings fall as salaries rise, then disappear above 1.6 SMIC.
This is a declaratory procedure. It is up to the employer to determine the amount of the reduction in social security contributions. Urssaf has set up a calculation simulator to assess the amount of this reduction.
Financial aid for employment linked to the company's geographical area
Exemption from contributions in rural revitalization zones (ZRR)
This exemption applies to craft, industrial, commercial, liberal or agricultural activities located in rural revitalization zones (ZRR). It provides a 12-month exemption from employers' social security and family allowance contributions. It is granted for the conclusion of a fixed-term contract of at least 12 months, or a permanent contract.
The exemption is total for salaries up to 1.5 SMIC and degressive between 1.5 and 2.4 SMIC. The scheme runs until December 31, 2023.
Exemption from charges in defense restructuring zones (ZRD)
To encourage the economic development of ZRDs, tax and social benefits are available to companies setting up new businesses.
The exemption covers social insurance and family allowance contributions, and runs for 5 years. It is effective at full rate for the first 3 years, then reduced by one-third in the 4th year and by two-thirds in the 5th year. The exemption is total for salaries below 1.4 SMIC and degressive up to 2.4 SMIC.
Financial assistance linked to employee profile
Free jobs
The "Emplois francs" scheme has been extended until December 31, 2022. It provides financial assistance for the recruitment of an unemployed person living in a QPV (urban policy priority district).
The amount of aid for full-time recruitment is :
- 15,000 for a permanent contract, paid over 3 years at €5,000 per year
- 5,000 for a minimum 6-month fixed-term contract, paid over 2 years at a rate of €2,500 per year
The scheme applies to both commercial and non-commercial companies, regardless of location. Eligibility is determined by the candidate's profile and place of residence. The "Emplois francs" scheme is aimed at jobseekers, young people being monitored by a local mission, and people on a "securisation professionnelle" contract.
Exceptional assistance under the "1 young person, 1 solution" plan
Against the backdrop of the health crisis, the government launched the " 1 young person, 1 solution " plan to help young people enter the world of work. Among the resources available under this scheme to help 16-25 year-olds, exceptional aid for the recruitment of work-study students has been extended until June 30, 2022. It applies to apprenticeship or professionalization contracts signed between March 1, 2021 and June 30, 2022.
The exceptional grant amounts to :
- 5,000 for a young person under 18 years of age
- 8,000 for a young person over the age of 18
It covers the preparation of diplomas equivalent to or lower than bac+5.
One-off aid for hiring an apprentice
This scheme is applicable to contracts signed between January 2019 and June 2020, or from July 2022 for the preparation of a diploma at or below baccalaureate level.
The one-off grant is awarded for 3 or 4 years, depending on the nature of the contract. It is distributed as follows:
- 4,125 € 1st year
- 2,000 € the 2nd year
- 1,200 for years 3 and 4
Support for recruitment under a professionalization contract
Companies hiring on permanent or fixed-term contracts, with a professionalization program lasting between 6 and 12 months, may qualify for various lump-sum grants ranging from €2,000 to €8,000, depending on the candidate's profile. Reimbursement of training expenses is also possible.
The profiles concerned are :
- Jobseekers aged 26 and over
- Jobseekers over 45 years of age
- The long-term unemployed
- Disabled people