The payment is the equivalent of the minimum wage of £6.63 per hour for someone working 35 hours a week for six months and also covers the Social Security payments to be paid by the employer.
It is hoped that around 100 young people aged 16 to 24 will get a permanent job as a result of the scheme, which has a budget of £650,000. And, if it is successful, extra money could be provided to help more young jobseekers.
Social Security Minister Francis Le Gresley said the youth incentive scheme was part of a wider project to move towards providing young Islanders with a guarantee that they would be offered further education, training or a job after leaving school. Other schemes to support that aim are in the process of being drawn up.