While the 2011 finance bill initially planned for a reduction of 120,000 subsidized contracts this year, the government reversed this decision to address a new rise in unemployment.
Through the voice of the Minister of Labor and Employment, Xavier Bertrand, the government now acknowledges that these contracts allow those furthest from the job market to “get a foot in the stirrup.”
236,000 employment support contracts (CAE) are thus scheduled for the second half of 2011 (see the June 30 circular from the DGTEFP), in addition to the 20,000 contracts announced at the beginning of September by the Head of State.
Therefore, more than 500,000 subsidized contracts will need to be opened in 2011 in associations, the public or semi-public sector, and local authorities, which is 42,000 more than in 2010.
This figure includes 120,000 subsidized jobs available for RSA beneficiaries and partially covered by general councils.
It should be noted that the aid provided by the State can vary depending on the employment category and sector of activity, the support actions in favor of the beneficiary, the economic and social conditions of the employment area, and the beneficiary’s previous employment situation. It can amount to up to 95% of the gross hourly minimum wage.
Moreover, the employing associations are exempt from employer contributions for social insurance and family allowances, payroll tax, apprenticeship tax, and employer contributions to the construction effort.
- Finally, note that the DGTEFP circular of June 30, 2011, reminds that this scheme should also facilitate the professional reintegration of disabled workers.
