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Assistance for the hiring of young people under 26 years of age

Assistance for the hiring of young people under 26 years of age

For the good of your company and the support of youth employment, we would like to inform you that according to the decree n°2020-982 of August 5, 2020, the government has set up an aid to companies that hire young people under 26 years old, up to €4,000. You will find below the conditions and modalities allowing you to benefit from this aid.

I –  Who is concerned?


  • All employers covered by the UNEDIC and established on French territory except public administrative establishments, public industrial and commercial establishments, semi-public companies and individual employers.

Candidates for employment:

  • The person hired allowing access to this aid must be under 26 years of age at the time the contract is concluded; the level of diploma is not an eligibility criterion.

II – Which contracts are eligible for aid?

  • A fixed-term contract of at least 3 months or a permanent contract;
  • Full-time or part-time contracts, the amount of aid being calculated on a pro rata basis in the case of part-time work;
  • Conclusion of the contract between 1 August 2020 and 31 January 2021;
  • Remuneration less than twice the hourly minimum wage (currently €20.30) when the contract is concluded, bearing in mind that the employee’s remuneration may be modified during the course of the contract.

 if a young person under the age of 26 is hired under a fixed-term contract entitling the company to aid, and before 31 January 2021, he or she obtains a permanent contract or a new fixed-term contract for at least 3 more months, the employer may continue to benefit from the aid linked to the hiring of this employee, even if he or she has passed the age of 26 during the previous contract, of course within the limit of the maximum amount of aid per employee.

III – What are the conditions for obtaining the aid? 

  • The employer must be up to date with his reporting and payment obligations with regard to the tax authorities and the bodies responsible for collecting social security or unemployment insurance contributions. If this is not the case, the employer must have subscribed to and comply with a plan for the settlement of outstanding contributions;
  • The post concerned by the aid must not have been subject to economic redundancy since 1 January 2020;
  • The employee in question must not have been initially hired on or after 1 August 2020 with a contract that does not give entitlement to the aid;
  • This aid may not be combined, for the same person hired, with any other State aid for integration, access or return to employment. However, it may be combined with reductions in social security contributions (Fillon reduction, etc.). 

IV – What are the amounts and conditions of payment of the aid?

  • The amount of aid can be up to €1,000 per quarter. It is paid at the end of that quarter, up to a maximum of one year. Thus, the maximum amount of aid for a single employee can be up to €4,000;
  • This amount is calculated in proportion to the employee’s share of working time and the effective duration of his or her employment contract;
  • The calculation starts from the first day of execution of the employment contract, on condition that the person hired is part of the employer’s staff at least for the 3 months following the start of his contract.

Please note that the aid is not paid for periods when:

  • The employee is absent without this giving rise to the maintenance of his remuneration by the company;
  • The employee is in a situation of partial activity;
  • The employee is in a situation of reduced activity during the quarter in question within the framework of the long-term partial activity scheme (i.e. APLD).

V – What is the process to benefit from this aid?

  • The employer must send his request for assistance to the Service and Payment Agency (ASP) within 4 months from the start date of the contract and certify on his honour that he meets the eligibility conditions mentioned in his request;
  • The platform set up to submit aid applications will be open from 1 October 2020, the date on which the first aid applications can be sent to the ASP;
  • A certificate from the employer justifying the presence of the employee is necessary for the payment of the aid:
    • it must indicate, if necessary, the periods for which the aid is not due;
    • it must be sent to the ASP via the dedicated teleservice, before the 4 months following the end of each quarter of the contract;
  • if it is not sent by the required deadline, this will result in the definitive non-payment of the aid for this period.

Please note:

  1. The ASP will be able to check the information transmitted when applying for aid and may also ask the employer to provide it with all the documents necessary for this check. If these documents are not provided to the PHI within one month, payment of assistance will be suspended.
  2. The company will have to reimburse all sums received under this aid if the hiring of an employee eligible for aid leads to the dismissal of another employee.

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