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France implements new subsidies to help the SME’s to recruit!

Since Jan, the 18th, and until end of December 2016, any SME can benefit from a new tempting plan for hiring a new employee under some few conditions:

- Be a SME with less than 250 employees
- Hire a new person with a permanent working contract, or a temporary working contract for at least 6 months, associated with a gross salary up to a maximum of 22877 euros/year.

With the existing other measures, this means that for any new hired person at the Minimum Wage, the company will be fully exonerated from social charges.

See our concrete example based on a new contract at the Guaranteed Minimum Gross Wage (SMIC):

Julie D., Entrepreneur, hires Pierre with a 12 months contract paid at the Guaranteed Minimum Gross Wage (SMIC):

Pierre will receive  1466€/month gross salary

Julie will pay 601€/month social charges, will receive:
- 440€/month for social charges reduction for low wages
- 88€/month for CICE
- 166€/month (equivalent to €2000/year)for this new measure

Starting from 2016/01/18, a new working contract at Minimum wage = 100% social charges reimbursed.

Please note that on the same principle, a new contract paid with a monthly gross salary of € 1900, this new measure represents a €527 monthly saving for the SME comparing to the previous situation. The remaining social charges for the SME for such a working contract would be €448/month, 23.6% of the gross salary!

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