12. Financial Assistance for Starting a Business in France

12.5. Assistance with Employee Costs for a Small Business in France

If you intend to employ staff then there are a bewildering array of contracts and schemes available that grant full or partial exemption from employer social security contributions, or grant financial support towards the wage or salary.

Many of these contracts are centred on young people or those over 50 years of age, particularly those who are unemployed.

More general assistance is available within development areas, of which there are many around France.

If you employ someone on the minimum wage then you are relieved of the obligation to pay certain employer social security contributions. This concession applies to employers with less than twenty employees.

Accordingly, before you consider advertising for staff you should make contact with the local ANPE employment office and discuss with them how they may be able to help you.

One of the largest schemes is in rural and urban development areas. In these areas there is an exemption from certain employer contributions for 12 months for health-maternity, disability, death, of old-age insurance) and family allowances.

On the other hand, supplementary pension contributions, unemployment insurance, accident at work, the CSG-CRDS, remain payable.

The exemption, applicable for 12 months from the date of effect of the contract, is:

total on the proportion of remuneration less than or equal to 1.5 Smic,
degressive on the proportion of remuneration between 1.5 and 2.4 Smic:
zero on the proportion of remuneration greater than 2.4 Smic.

To go further, the website of the Urssaf gives the formula for calculating the exemption.

To benefit from the exemption, it is necessary to complete Form 10791/02 and send it within 30 days of hiring to the Direction régionale de l'économie, de l’emploi, du travail et des solidarités (Dreets).

You will also find that your regional council has assistance and information available on such schemes.

In the past, the formalities of registration of a new employee with the tax and social security authorities, as well as the calculation and payment of the social security contributions, has been an administrative headache for employers.

The situation has improved of late for small employers with no more than 5 employees, who can make use of a service called Titre Emploi-Service Entreprise (TESE) which streamlines the whole process.

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