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04
September
2009

Lagarde wants to improve the "zero-charge" scheme for very small businesses

The Minister of the Economy wants to extend the full exemption schemeéuntil at least June 30, with a twelve-month exemptionéfrom charges on new hires.

Although business is picking up, the government is still anticipating several difficult quarters on the employment front. Matignon has therefore decided to extend certain measures of the stimulus plan into 2010, selecting those that are « particularly effective in supporting the éco- nomy » (« Les Echos » September 8). Among these is the complementary exemptionération de charges patronales sur les embauches pour les entreprises de moins de dix salariés : 500,000 recruitments have déjà bénéficié since 4 décembre 2008 and the government estimates that a third of these hirings would not have taken place without the measure.

185 euros per month

Secrétaire d'Etat à l'Emploi, Laurent Wauquiez, indicatedé at the start of the week in « Le Figaro » that halfé of hirings concerned people under 25 years old, « a surprise », and that 61 % were on fixed-term contracts. The aid amounts to around 185 euros per month for a full-time employee at the SMICéà wage. It is degressive and is cancelled out for salaries above é1.6 SMIC. Paradoxically, the measure should cost ûter « only  » 400 million this year, whereas the exécutif anticipated a déthink of 700 million.

One of the reasons is linked to the fact that the exemptionération relates to the salaries of people hiredéover the whole of 2009, regardless of the date of recruitment. The benefit therefore diminishes éthe later in the year the employee is hired. Hence the governmentés determination to recalibrate the scheme à on the occasion of its extension. Yesterday, Economy Minister Christine Lagarde indicatedé on France Inter that she « espérait vivement la prolongation du mécanisme du zéro charge, which will allow (...) to bénéficier a total exonération de charges pendant douze mois pour toute embauche réalisée jusqu'au 30 juin ». The benefit - twelve months' salary without charges ­- would thus be improvedélioré compared with the current scheme. The new scheme has not yet been fully implemented (it could even be extended beyond July 1). Logically, it should come into force as soon as the Finance Bill is presented to the Council of Ministers on September 30, in order to prevent employers of very small businesses from waiting until January 1 to recruit.

Source "les echos"

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