Paris, France – The French government is reducing financial aid for apprenticeships, particularly impacting those pursuing higher education qualifications, as part of broader austerity measures aimed at curbing public spending. The changes, set to take effect imminently, have sparked concern among student and employer groups about the potential impact on vocational training and workforce development.
According to a decree obtained by Agence France-Presse (AFP), the subsidy for companies hiring apprentices preparing for a *Brevet de Technicien Supérieur* (BTS) or *Diplôme Universitaire de Technologie* (DUT) – equivalent to a two-year post-secondary diploma – will fall to a maximum of €4,500. For apprentices undertaking engineering degrees, masters, or licenses, the aid will be reduced to €2,000. These figures represent a decrease from previous levels of €5,000 and €2,000 respectively for smaller companies with fewer than 250 employees.
Larger companies, those employing 250 or more individuals, will see their subsidies reduced to €750 for higher-level qualifications and €1,500 for BTS/DUT level apprenticeships. Notably, the financial support for hiring apprentices with disabilities will remain unchanged at €6,000, regardless of company size.
The cuts are part of a wider package of budgetary adjustments announced in October 2025, which also includes a freeze on inflation adjustments for housing assistance and the elimination of certain tax benefits for students. The government anticipates savings of approximately €200 million in 2026, rising to €700 million by the following year.
The move reverses a trend of increasing support for apprenticeships that had seen numbers surge from 430,000 in 2017 to over one million in 2023. This growth was largely attributed to the previous, more generous aid packages, which incentivized companies to take on apprentices.
The changes to apprenticeship subsidies come amidst a broader debate about the funding of higher education in France. According to data from the French Ministry of National Education, Higher Education and Research, in 2022, 22.4% of Domestic Expenditure on Education was allocated to higher education. The State remains the primary funder, accounting for 60.2% of financing, followed by companies (18.3%), households (10.5%), and local authorities (7.9%).
The government’s budget is structured around “missions” and “programmes” established by the Organic Law of 1 August 2001 on Finance Laws (LOLF). This framework emphasizes performance-based public management and transparency, with annual performance plans and reports detailing objectives and results.
The reduction in aid has drawn criticism from student organizations. Concerns center on the potential for increased financial hardship for apprentices, particularly those from lower-income backgrounds. The changes also raise questions about the long-term impact on the availability of apprenticeships, especially in sectors reliant on government subsidies.
The social security contribution exemption threshold for apprentices will also be lowered, dropping to 50% of the minimum wage (SMIC) from 79% starting March 1, 2025. This adjustment will further impact the net income of apprentices.
However, some additional support remains available. Private sector employers hiring disabled apprentices can access up to €3,000 in additional aid from Agefiph. Companies are reminded to file their contracts with the relevant *Organisme Paritaire Collecteur Agréé* (OPCO) within six months to qualify for these benefits.
The French government’s decision to scale back apprenticeship subsidies reflects a broader effort to consolidate public finances. However, the move risks undermining a program that had been instrumental in expanding vocational training opportunities and addressing skills gaps in the French economy. The long-term consequences of these changes remain to be seen, but they are likely to be a subject of ongoing debate among policymakers, employers, and students alike.
The decree will be implemented the day following its official publication and will apply to all apprenticeship contracts concluded thereafter, according to the Ministry of Labour.
