Government plans cuts to apprenticeship hiring subsidies

15:30

By: Sahili Aya

Government plans cuts to apprenticeship hiring subsidies

The French government is preparing new reductions to financial incentives granted to companies hiring apprentices, as part of a broader effort to curb public spending.

According to information released by the Ministry of Labor, the amounts paid to employers for recruiting apprentices pursuing higher-level qualifications—such as two-year technical degrees and engineering diplomas—will be lowered. However, support for apprentices with disabilities will remain unchanged.

In recent years, apprenticeship hiring bonuses have undergone several adjustments. What was once a flat €6,000 subsidy for businesses was reduced in 2025, with differentiated amounts based on company size. Under the new draft decree, small and medium-sized enterprises with fewer than 250 employees would receive up to €4,500 for apprentices preparing two-year post-secondary diplomas, and €2,000 for those enrolled in engineering, master’s or bachelor’s programs.

Larger companies—those with 250 employees or more—would receive lower amounts, including €750 for higher education diplomas and €1,500 for two-year degrees. The €6,000 subsidy for hiring apprentices with disabilities would be maintained in full.

Budgetary impact

The government estimates that these adjustments could generate approximately €200 million in savings in 2026, rising to around €900 million over two years. The revised subsidies would apply to apprenticeship contracts signed after the decree enters into force and before January 1, 2027, covering the first year of each contract.

The reforms come after a significant expansion of apprenticeship programs in France. Fueled by public incentives, the number of apprentices increased dramatically over the past decade, surpassing one million in 2023. The system, once primarily associated with vocational trades, has increasingly attracted students in higher education and service-sector professions.

While officials emphasize the need to balance support for youth employment with fiscal responsibility, critics warn that reducing financial incentives could slow momentum in a program widely credited with boosting workforce integration among young people.