The government is tightening the screws on apprenticeships. A draft decree from the Ministry of Labor proposes reducing the bonuses paid to companies that recruit apprentices in higher education. The stated objective is clear: to curb public spending and generate nearly €900 million in savings over two years.
Until now, companies with fewer than 250 employees could receive a subsidy of €5,000 for hiring an apprentice, compared to €2,000 for larger companies. This scheme, expanded in recent years to provide significant support for apprenticeships, will now be adjusted according to the level of qualification being pursued.
For two-year vocational diplomas (BTS or DUT), the grant will be capped at €4,500 in SMEs. For bachelor's, master's, or engineering degrees, it will drop to €2,000. In companies with 250 employees or more, support will be even more limited: €1,500 for two-year post-secondary programs and only €750 for higher degrees. An exception remains for apprentices with disabilities, whose grant will remain at €6,000.
A device that has become a victim of its own success
These exceptional subsidies only apply to the first year of apprenticeship contracts signed before January 1, 2027. The government hopes to save around 200 million euros in 2026, and then an additional 700 million in 2027.
Behind this reduction lies a paradox. The system has largely contributed to the explosion in the number of apprentices in recent years. The number has risen from approximately 430,000 apprentices in 2017 to over one million in 2023. This spectacular growth is explained in particular by the massive expansion of apprenticeships into higher education and the service sector.
But this success comes at a price. Extending the program to higher education degrees, particularly in business and engineering schools, has significantly increased public spending. The government now believes the system needs to be refocused while maintaining its appeal.
The decree is to take effect immediately upon publication. It will apply only to new contracts signed from that date onward. Businesses and training institutions are already questioning the impact of this reduction in subsidies, given that apprenticeships have become a key driver of youth employment.
