Creation of the 'contrat d'avenir' for recipients of RMI, ASS and API

Article 49 of the social cohesion programming Act of 18 January 2005 creates the 'contrat d'avenir', a two-year fixed-term employment contract (renewable for 12 months, 36 months above age 50) for recipients of the RMI, ASS or API, concluded with a non-market employer for 26 hours a week paid at least the hourly minimum wage. The employer receives aid equal to the RMI guaranteed to a single person, paid by the body paying the allowance, plus State aid. Under Decree No. 2005-242 of 17 March 2005, State aid equals 75% of the reference amount in the first year, 50% in the second and 25% in the third year (75% throughout for integration workshops). Article 80 programmes one million contracts.