New aidEndedEmployment and contributionsNational

“Zero charges” hiring aid for businesses with fewer than ten employees

Decree No. 2008-1357 of 19 December 2008 creates a State hiring aid for businesses with fewer than ten employees, for wages paid from January 2009 for hires made from 4 December 2008. The aid is calculated like the general reduction in employer contributions (the “Fillon” reduction) with a maximum coefficient of 0.14 at the minimum wage, falling to zero at 1.6 times the minimum wage, which offsets the employer contributions still due at minimum wage level. It is managed by Pôle emploi. Decree No. 2009-1396 of 16 November 2009 extended the scheme to hires made until 30 June 2010, with the aid due for twelve months.

Measure originators

InitiatorGVT

Christine Lagarde

Gouvernement

Impact on public finances

Costs 700 m €/yr2009 estimate · State

Source of the estimate: Sénat, rapport n° 162 (2008-2009) sur le projet de loi de finances rectificative pour 2009 (Indirect official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 January 2009

Measure impact

Very small businesses hiring on a permanent contract or a fixed-term contract of more than one month receive a quarterly aid, highest at the minimum wage and nil at 1.6 times the minimum wage. The first 2009 amending budget allocates €700 million to it.