In 2025, the government will continue financial support for hiring apprentices, offering up to €5,000 for SMEs and €2,000 for larger companies, albeit at reduced levels. This decision aims to sustain apprenticeship opportunities post-pandemic, as the current aid system expires in 2024. While some industry groups advocate for maintaining support for small businesses, others express concerns about the rapid implementation of changes. The continuation of aid reflects the government’s commitment to enhancing apprenticeship programs, with formalized details expected in January.
Government Confirms Apprentice Hiring Aids for 2025
The announcement is out: in 2025, financial support for hiring apprentices will continue for all businesses, albeit at reduced amounts. Small and medium-sized enterprises (SMEs) will receive up to €5,000, while larger companies will be eligible for €2,000, the Ministry of Labor disclosed on Monday. This update comes as the existing aid system, which offers €6,000 to all firms, is set to expire at the end of 2024. The government’s decision aims to prevent a regression to pre-pandemic conditions concerning apprenticeship opportunities.
The Ministry further clarified that without this intervention, the aid would have been limited to contracts preparing for diplomas at the high school level and below, affecting only companies with fewer than 250 employees. This restriction would encompass less than a third of all contracts, highlighting the necessity of maintaining broader support.
Conditions for Larger Companies and Industry Reactions
For companies with 250 or more employees, the aid will come with additional stipulations regarding the percentage of apprentices or professional integration contracts they must maintain. The government emphasizes that this approach is intended to sustain financial support across varying levels of diploma preparation, enabling businesses to develop essential skills for their growth, as stated by Labor Minister Astrid Panosyan-Bouvet.
The U2P, a representative body for local businesses, has urged the government to reconsider its plan to reduce apprenticeship hiring aids in 2025, criticizing the rapid decision-making process. They expressed confusion over the timing, especially before the Prime Minister’s forthcoming policy speech on January 14, and voiced concerns about the lack of involvement from social partners.
“Before cutting back on investments in youth training, the government must make a long-term commitment to apprenticeship programs, which have shown significant success in job creation,” asserted the U2P. They also highlighted the need for financial support to prioritize small businesses, especially those with fewer than 50 employees, urging the government to halt the proposed decree until more thoughtful decisions can be made.
The Confederation of SMEs (CPME) welcomed the decision, noting their advocacy for preserving aid for SMEs, regardless of diploma levels. They expressed hope that despite the decline in activity across various sectors, the positive trend in apprenticeship would remain unaffected.
The financial incentives have played a crucial role in boosting the number of apprenticeship contracts in France, surpassing one million by the close of 2023. However, the cost of these aids to public finances has more than doubled from 2018 to 2021, exceeding €20 billion, according to France Compétences. The original budget proposal for 2025, now outdated, aimed to cut €1.2 billion from these aids.
Catherine Vautrin, overseeing a major ministry that includes Labor, remarked that the continuation of these aids “reflects our commitment to maintaining our ambitions and efforts in support of apprenticeship.” The government’s decision is expected to be formalized through a decree set for release in January, following discussions with the National Commission for Collective Bargaining, Employment, and Vocational Training (CNNCEFP).