Stands for: Aide à la Reprise ou à la Création Entreprise
What is it?
Think of it as a chunk of your ARE (unemployment benefits, see above) but paid in 2 instalments rather than many monthly ones. The size of that chunk depends on when you became unemployed: if it was before July 1, 2023, you will receive 45% of the total ARE you were entitled to (2 instalments of 22.5%); if you became unemployed after that date, you will receive 60% of the total ARE sum you were entitled to (2 instalments of 30%).
The first ARCE instalment comes when you’ve done all the initial paperwork. The second instalment comes exactly 6 months later.
For example, let’s say you were made unemployed on July 2, 2023 and were entitled to total benefits of €30,000, to be paid monthly over two years with the ARE system. If you opt instead for the ARCE system, then regardless of how much you earn through your business, you will get 30% of that (€9,000) once you’ve done your ARCE paperwork. Then, 6 months later, you get the other 30% (€9,000). What about the remaining 40% (€12,000) of your ARE? You will not be entitled to that unless:
- you close your business, or
- you start and finish another employment contract after being granted the ARCE.
Who’s it for?
The ARCE is open to anyone as long as they receive the ACRE (see above) and were receiving an ARE. However, you can’t receive ARE and the ARCE at the same time, which means you must choose between:
- ACRE + ARCE, or
- ACRE + ARE.
By receiving two larger instalments with the ARCE, freelancers get a larger injection of money to get their business up and running. They are also guaranteed that money no matter what their business earns them. On the flip side, they forfeit their right to their full ARE allocation if they keep their business open.
How do you apply?
You can get your ARCE through the Pôle Emploi, which provides more information here (link in French).