Requesting tax relief for hiring an unemployed jobseeker

Employers who hire an unemployed jobseeker may be entitled to receive tax relief.

Who is eligible

This financial aid is available to:
  • commercial, industrial, mining and craft enterprises;
  • businesses generating their profits from agricultural and forestry activity;
  • liberal professions.

The tax relief is not available for:

  • temporary work agencies
  • private households.

Prerequisites

For the employer to be entitled to tax relief, the jobseeker hired must:

  • be unemployed;
  • be registered with ADEM for at least 6 months;
  • be suggested by ADEM.

The tax bonus can also be granted if the employer:

  • undertakes an internal redeployment of the salaried employee;
  • hires a jobseeker who is eligible for external redeployment (in this case the inscription period with ADEM can be less than 6 months);
  • hires a jobseeker during or after his assignment to an employment measure(employment initiation contract – CIE; employment reintegration contract- CRE)

The work contact signed with the former jobseeker must be:

  • a permanent contract (CDI);
  • a fixed-term contract of a minimum of 18 months (CDD);
  • a fixed-term contract in view to replacing an employee who is on parental leave (this must be specified in the contract).

The contract must be for at least 16 hours per week.

Financial considerations

The monthly tax relief per eligible unemployed person shall amount to 10% of the gross monthly remuneration deductible as an operating expense. 

The tax relief may be awarded for a maximum duration of 12 months, provided that the employment contract is maintained throughout this period. In the event of termination of the contract, the employer shall cease to be entitled to the tax relief as of the month of such termination.

How to proceed

The employer must submit a request for tax relief for hiring an unemployed person to ADEM. The request must be accompanied by a copy of the employment contract. For further information please contact ADEM's job protection department (Service maintien de l'emploi).

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