Training fund

The Greek Manpower Organisation (OAED) provides every company in the private and public sectors the possibility to train their staff, taking advantage of the Account for Employment and Vocational Training (LAEK). Employers are obliged by law to contribute a proportion of the payroll (0.24% since July 2014) to the fund. The funds are then used to subsidize training costs of companies. Companies can receive 100% of their contributions back to cover their training costs. The funds for refunding employers' training costs are collected together with contributions for covering costs of initial vocational education and training and training of the unemployed, yet are treated as separate funding streams. The objective of the in-company training programmes covered by the fund is to train employees in subjects that respond to the needs of the company and increase the productivity of their employees. Staff eligible for the training is those insured with the Greek Social Security Institute (IKA) and belonging to one of the insurance branches of OAED. No preferential treatment is applied.

The Adult Education Budget (AEB) funds qualifications and programmes for learners aged 19+. The total AEB budget is set by the UK Government, with the Education and Skills Funding Agency (EFSA) confirming each FE provider's funding allocation or maximum contract value for the forthcoming year. Providers earn funding up to their maximum by delivering education and training that is approved for public funding. Employers and learners can access AEB funding via their local training provider or FE College. The AEB is a resource for employers who need to improve the skills of their workforce to meet the future challenges of automation and skills shortages. It can support staff to gain new skills, improve their current level of knowledge in an occupation, or prepare them for an apprenticeship. Individual learners can gain new skills to support career development for career changes, or improve progression opportunities in their employment.

OOM is the training fund of the social partners in the metalworking industry (SMEs). The board of OOM includes representatives of employers' organisations and trade unions. The objective of OOM is to raise the level of craftsmanship in the sector, bringing the prospect of 'lifelong learning' to the attention of approximately 14 000 companies and 142 000 employees. OOM supports any training and education programmes (non-formal and formal learning). The metalworking sector funds OOM through an annual contribution, where companies are obliged based on a social partner agreement to contribute 0.625% of company payroll to the fund (on average EUR 197 per employee per year). On top of that, OOM may collect additional funding from ESF programmes and other national subsidies. The yearly budget of OOM, totaling around EUR 28 000 000, flows back to employers and employees in the form of various contributions and services. Fees and other costs related to education and training are considered eligible costs to be funded from the OOM budget.

All companies (with some exceptions) are obliged to participate in the financing of the expenses for the development of apprenticeships and initial technological and vocational education by paying the so-called training tax. In general they contribute 0.68% of the gross annual wages of the previous year. Self-employed do not contribute to the apprenticeship tax. The funding capital is used to give grants to training providers as well as to companies providing initial technological and vocational education and training. Expenses and payments made by companies for this purpose, through a collection institution (Organismes Collecteurs de la Taxe d'Apprentissage, OCTA), are deducted from the tax, and any remaining balance is paid to the Treasury. OCTAs are also responsible for transferring the money to beneficiary institutions. Funding is made via levy on companies, where companies are obliged to contribute to the fund, according to different tax rates of the gross annual wages of the previous year, depending on different considerations (size of the company, geographical location, percentage of apprentices in the workforce, etc). The 2018 reform has significantly changed the financial system of vocational training and apprenticeship. OCTA have disappeared. The collection of the single company contribution to vocational training and apprenticeship will be operated by URSSAF (Unions de Recouvrement des Cotisations de Sécurité Sociale et d'Allocations Familiales - Organisations for the payment of social security and family benefit contributions). As a transitional measure, for the year 2020, the collection is carried out by OPCO (Opérateurs de Compétences).

The Building and Construction Development Fund is one of the sectoral training funds in Denmark. The fund is based on a collective agreement at a sectoral level between the relevant employers' organisations and trade unions. The collective agreement states that companies in the construction sector are obliged to contribute a fixed amount per employee (DKK 520 (approx. EUR 70)) to a training fund and may receive contributions to their training costs in return. Eligible activities include general education, secondary education, adult vocational training, and tertiary education. Companies receive a grant for compensating the wage costs (DKK 55 (approx. EUR 7) contribution to the wage costs for each hour of participation in training).

Companies of the construction sector with a total wage bill of over GBP 80 000 (approx. EUR 95 031) must contribute 0.5% of their payroll and 1.5% of their sub-contractor payroll to a training fund. In return, training costs of employers (including those not liable to pay the training levy) are refunded. The grant is GBP 50 (approx. EUR 59) per person for each full day of training. Eligible education and training activities include apprenticeships, professional courses, technological management, short-duration training, vocational courses, and some e-learning/modular training programmes. Only CITB-registered firms can benefit from the fund.

All employers have to contribute to training funds (managed by social partners) by paying a single annual contribution, which is later channeled to OPCOs (Opérateurs de Compétences, state-approved bodies responsible for supporting vocational training). The level of the contribution to the fund (levy on companies, calculated as a percentage of payroll) depends on the size of the company. From 2016 onwards, companies with less than 11 employees contribute 0.55% of their gross annual wages and companies with 11 or more employees contribute 1%. The collected funds are used to cover companies' and individuals' education and training costs through different grants established (e.g. individual learning account, professional training contract, professionalisation period or individual training leave). The management is in the hands of OPCOs. Currently, there are 11 OPCOs covering different sectors. At the time of data collection, the system was undergoing changes - it is planned that the contributions will be collected by URSSAF from 2022 onwards.

Companies of the construction engineering sector are obliged by law to contribute a share of the payroll (1.2% of the total payments to employees and labour-only contractors) to a training fund. In return, training costs of employers (including those not liable to pay the training levy) are refunded. Eligible education and training activities include apprenticeship, upskilling, reskilling. Engineering constructions companies are the principal eligible group. Training grants and graduate development grants are available to employees of eligible companies.

All companies are obliged by law to contribute a fixed amount per employee to a training fund covering (primarily) the costs for initial vocational education and training and may receive contributions to their training costs in return. Companies contribute DKK 2 791 (approx. EUR 373) for each employee per year. Companies receive a grant for compensating the wages when trainees attend vocational school. The weekly reimbursement for adult trainees (aged 25+) amounts to DKK 5 240 (approx. EUR 701) per school week. For younger trainees, the wage reimbursement varies between DKK 2 800 (EUR 375) and DKK 4 110 (approx. EUR 550). Adults account only for a minority among trainees in initial vocational education. Employers' Reimbursement System (including internship - AUB scheme -, and training allowances - VEU scheme) has a significant effect on the creation of work placements within the vocational education and training, as well as on the access for adults to participate in further education and training.

The FWDF provides UK Apprenticeship Levy-Payers (levy set at 0.5% of annual pay bill) with flexible workforce development training opportunities to support inclusive economic growth through up-skilling or re-skilling of their employees. The FWDF is particularly targeted at addressing skills gaps and the training needs of the older workforce and those with protected characteristics. The FWDF is a flexible fund, meaning employers can choose the training they need, select a college of their choice, use the Fund to address priority skills gaps, and pass on the benefits of the Fund access to their supply chain. Each levy-payer is able to access a maximum total funding of GBP 15 000 per year (approx. EUR 17 800).

Based on a dismantled compulsory system, companies join in on a voluntary basis and contribute to sectoral as well as regional training funds. The training costs of the Employee Training Fund are covered by the employees of the employers, who regularly contribute to the Fund via a levy amounting to 1% of minimum gross salary in the Republic of Slovenia per employee (which is EUR 6.5 per employee per month in 2020). Any formal and non-formal education and training is eligible for funding. The financing of the costs of education and training of employees with the same employer in a calendar year may not exceed EUR 300 per individual employee. An individual employer cannot receive more than EUR 7 000 in reimbursed education and training costs in a calendar year. The operation/management of the training fund is under the Foundation for Employees Training.

The Film Skills Investment Fund (FSIF) directly supports skills and training for the UK film industry, including bursaries for individual beneficiaries. Studios and production companies producing films in the UK are encouraged to contribute 0.5% of their core UK expenditure up to a cap of GBP 58 200 (approx. EUR 69 270) per production, into the Film Skills Fund. If films receive public support, they are required to contribute the 0.5% to the FSIF. High-end TV Skills Fund, established in return for the tax credit productions costing more than GBP 1 000 000 (approx. EUR 1 187 888) an hour, supports training programmes for new entrants and the continuous professional development of crew and talent. Sector workers in the Film and High-end TV sectors in the UK are eligible for this scheme. Eligible costs for a bursary include accommodation, disability access support, care, driving lessons, equipment/clothing/software licenses, subsistence, training, travel, and bespoke training/coaching.

Companies of the financial sector are obliged to contribute a fixed share of payroll costs (1.5%) to a training fund which, in return, provides funding for training employees of the financial sector for the banking environment in Luxembourg and the various trades that the industry offers. Eligible types of training include areas such as insurance banking, business management, law, fiscal law, economy, financial management, pedagogy. Fees and other costs related to training (such as costs of materials) are considered eligible costs to be funded. No preferential treatment for a particular group of beneficiaries is applied.

All companies in Cyprus, irrespective of their economic sector, are obliged to contribute a fixed share of their payroll costs (0.5%) to the HRDA Training Fund. In return, they may receive grants in the form of subsidies for approved training activities, such as (i) Single company Training programmes in Cyprus, and (ii) Single company training programmes abroad. These company grants are covered entirely by national sources. The actual amount of subsidy is not fixed and depends on a number of parameters whether the training is carried out in Cyprus or abroad. Co-fuding can cover 80% of eligible costs. The instrument represents a specific funding intervention whereby companies receive grants to cover part of their training costs for local and overseas VET programmes, as well as for specific thematic funding programmes targeted towards unemployed individuals.

Based on a collective agreement, employers of the construction sector contribute to a training fund and receive subsidies for their training costs from the fund. EU-funds support the training fund (50% of the fund's budget, approx. EUR 3 000 000). The remaining EUR 3 000 000 are raised through the levy on companies in the sector (0.65% of the payroll). Professional education and training, research, and development in the building sector are considered eligible types of training. No preferential treatment for particular eligible groups is applied.

"Fapi - Fondo Formazione PMI - is a joint interprofessional fund to promote the development of Continuing Education in SMEs. It is financed through the mandatory levy of 0.30% of the contributions that companies pay to INPS every month and that INPS pays to the funds to which companies adhere. The distribution of funds is very polarized in the regions where there is a high concentration of productive areas (Lombardy, Lazio, Veneto, Emilia Romagna and Piedmont). In Lazio, Puglia and Basilicata, it is the first fund in terms of the number of associated companies. The composition of members reflects the Italian reality characterized by a high share of small and medium-sized companies (almost 87% of companies have fewer than 20 employees) located mainly in the North.

The Joint Interprofessional Funds for Continuing Education are bodies of an associative nature founded and promoted by employer's organisations and trade unions and aimed at promoting training activities for employed workers. They are authorised to collect the 0.30% paid to INPS and redistribute it among their members (referring to the compulsory contribution for social security training established by Law 845/1978). By allocating the 0.30% to an Interprofessional Fund, the company will be guaranteed that what has been paid - by obligation (Law 845/1978) - can be returned to it in training actions aimed at upskilling employees. All types of education and training are eligible to be funded. Joining a fund is voluntary for companies.

Companies in the construction sector (as defined by NACE Rev. 2) have to pay a compulsory levy calculated as a percentage of payroll. The level of levy determined by the social partners' board members, and it is currently a 0.35% of the Social Insurance contribution bases for the period 2018-2021. These payments make up the budget of the Labour Foundation. The Labour Foundation for Construction develops its activities for sector companies, workers and the unemployed. For each of them, different activities and services are provided. The Foundation provides services for sector-related occupational health and safety (tutorials, OSH-related practical experiences, advisory services), employment promotion (including a job portal, recruitment and placement services, employment guidance or the development of the so-called Construction Professional Card), as well as other information-related services relevant for the sector (including the provision of studies on emerging sector skill needs, training manuals, sector analysis on different domains, etc). 100% of eligible costs can be covered. The idea is to make the Foundation a sectoral knowledge centre for the sector that diffuses this knowledge to the sector. Special treatment is given to some specific groups, particularly to unemployed workers. They can benefit from specific ad-hoc activities, including training-related ones.

Employers are obliged by law to contribute a fixed share of payroll (0.7%) to a training fund. The fund provides for expenditure on training for those seeking employment, training for persons in employment, literacy, and numeracy, training for those in the community and voluntary sector, and also provides funding for the identification of existing and future skills needs for the economy. Eligible costs are defined under the separate programmes funded through the National Training Fund.

Based on a collective agreement, temporary work agencies contribute a fixed share of payroll (0.6%) to a training fund. In return, the temporary work agencies receive funding for implementing sectoral training programmes. The maximum amount that a temporary work agency may receive is up to the amount of the entity's contribution to the training fund reduced by the operational cost of the fund. No preferential treatment for a particular eligible group is applied. For temporary workers, the main focus of training is on health and safety and employability. For permanent employees, the main focus is on induction training and continuing training.

Based on sectoral agreements between the social partners, there is a high number of training funds in Denmark, so-called education and competence funds. Training funds are engaged in a variety of training-related activities. Educational funds are commonly used to develop new teaching or training courses, produce and disseminate information, material etc. The purpose of competence funds is to support worker participation in CVET. As the mainly state-funded CVET system provides vocational courses at no or very low costs, training funds do use only a small part of their means for reimbursing companies' spending on course fees. There is no comprehensive overview of the various sectors funds. Detailed conditions depend on the specific fund.

Agencies that offer temporary work are obliged by law to contribute a fixed share of their payroll costs (0.35%) to a training fund and may receive reimbursement of their training costs such as course fees and wage costs. Agencies can receive subsidies up to 200% (occasionally 300%) of their contributions to the fund. However, de minimis regulation applies, limiting large corporations' access to a full reimbursement of their incurred training costs. Current temporary workers can choose among training opportunities free of charge and receive a supplementing wage subsidy in case of entering a PES funded long-term training measure. Former temporary agency workers (currently unemployed) are also eligible for training subsidies. No preferential treatment for particular groups is applied. Only the education and training offered by recognised training providers (as reported in a list of eligible providers) is eligible. It includes programmes leading to a formal vocational qualification and short vocational courses (e.g. related to welding, forklift driving, and many more). The fund is managed by social partners (representatives of employers and employees). The Federal Ministry for Labour, Social Affairs, and Consumer Protection plays a supervisory role.

All private companies and employees pay a monthly professional training fee to Social Security ('cuota de formación profesional' in Spanish). This fee is calculated as a fixed share of the payroll (0.6 % and 0.1 % for companies and employees respectively). This contribution is channeled to the system of vocational education and training for employment. The system also has other sources of funding, namely the State (General Administration) and the European Social Fund, which may provide resources to autonomous communities to fund some specific programmes which meet the requirements (specifically those supply-driven schemes aimed at the unemployed). In January every year, companies have an 'annual training credit' available, which can be used to cover demand-driven schemes costs by means of discounts in social security contributions, once training actions are finalised and paid by the company. Supply-driven schemes are free for individuals. The most important demand-side schemes managed by Fundae are training delivered/planned by companies ('formación programada por las empresas') and individual training leaves ('permiso individual de formación, PIF'). Fundae also manages important supply-side schemes, such as training for employed workers and the unemployed ('formación de oferta'). Concerning the latter, there are different types of programmes, for which training actions are defined in calls, which could cover several years. Women, older than 45 years of age and non-qualified people are preferential groups.

The State Sector Competence Fund is one of the sectorial training funds in Denmark. The fund consists of DKK 172 300 000 (approx. EUR 23 100 000) covering the period from 04.09.2019 - 31.03.2021. The fund supports further education and training, materials, transportation, and accommodation. The fund supports four different groups of public sector employees: Public Employees' organisation, The Confederation of Teachers Unions, The Danish Confederation of Public Employees of 2010, and The Danish Confederation of Professional Associations. All applicants need to fit into one of these cateories to apply for financial support. There is no preferential treatment within the groups. To get financial support, an employee needs a signed agreement with his/her employer. The funds only support a percentage of the total costs, and the employer needs to partly finance the training costs. The rules slightly differ per each group of employees.

The Industry Competence Development Fund is one of the sectoral training funds in Denmark. The Fund is based on a collective agreement at a sectoral level between some of the biggest trade unions and employers' organisations in Denmark. The training fund is a legal body funded by companies in the manufacturing sector through the respective employer interest organisations in the sector. Companies in the manufacturing sector are obliged by collective agreement to contribute a fixed amount per employee (DKK 520 (approx. EUR 70)) to a training fund and may receive contributions to their training costs in return. Eligible activities include general education, secondary education, adult vocational training, and tertiary education. The compensation can both be transferred directly to the employee or the employer. This depends on whether an employee applies for funding for self-selected education or whether the employer and employee make an agreement to apply for funding for a mutually agreed upon education. The training fund secures that 85% of lost wages for up to 10 days of work and 100% of course fees are compensated. Learners may also receive reimbursement for travel costs (if the travel time exceeds 2.5 hours). The fund needs to be seen as complementing the Employers' Reimbursement System with a component allowing employees to freely choose training activities according to their own interest, while the employers receive co-funding for training costs mainly by the Reimbursement System.

The objectives of O&O funds as stipulated in the collective agreements and negotiated between social partners in each sector cover a wide range of measures related to training and development: financing training, workers' employability, advice, research, improvement of the quality of craftsmanship, wages of apprentices, accreditation/validation of prior learning, and training plans and career scans. O&O is created and governed by social partners on a bipartite basis. The level of levy 0.625%.

DOORZAAM is the training fund for the temporary agency work sector. The fund is co-managed by the employer organisations and the trade unions, and overseen by the Ministry of Social Affairs. Companies are obliged to pay 0.2% of their payroll to the Social Fund of the temporary work agency sector (SFU). Approx. 55% of the collected funds are available for education and training. DOORZAAM is also funded through participation in national and European subsidy schemes and projects. DOORZAAM provides services to its members and target groups on four themes (i.e. lifelong learning, healthy and sound working conditions, and a broad focus on career guidance and development). The training fund covers any agreed vocational training for temporary agency workers. Several programmes exist: grants for providing mentors for apprentices, training vouchers, financial contributions for the validation of professional experience, licenses for e-learning modules for employees with low literacy. Training vouchers amount to a maximum of EUR 500 per employee within a company.

Fondartiginato promotes and realises lifelong learning initiatives aimed at enhancing human resources and developing the activity sectors of the craftsmanship of small and medium-sized enterprises. The objective of the Fondartigianato is the development of training practices that further qualify the work of craftsmen, "Made in Italy" and SMEs in the system of labour policies. Fondartigianato finances the training of workers whose companies have joined the fund. Depending on the specific call, women, migrants, workers under 35 are preferential treated. Eligible activities are: (a) management activities; (b) preparatory activities for the training plans drafting (such as e.g., advertising, communication, etc.); (c) activities aimed at financing training projects. The level of levy is 0.30%.

Companies in the electro-technics sector are obliged by national law to contribute a fixed share of their payroll costs (0.75%) to a training fund and may receive a contribution to their training costs in return. Courses provided by the fund's training centre are free of charge and employers receive compensation for the loss of working time. Each company gets a training budget per employee of EUR 15.50 per training hour with a maximum of 8 hours each year (EUR 124 per year). Type of education eligible includes both training provided by the fund's training institute and training by accredited external providers. The fund is managed by the social partners, both sectoral trade unions and sectoral employer associations.

Companies in the scaffolding sector are obliged by collective agreement to contribute a specific percentage of the payroll (2.5% as part of a 25% contribution of the wages for various social security-related issues) to a training fund that covers, among others, (e.g., social security payments) costs for initial and continuing vocational education and training. In return, companies may receive contributions to their initial training costs and their further education costs. The fund covers 100% of the course fees; there is a fixed amount per day for the personnel absence costs (up to 100% of the daily wage costs for certain courses). Reimbursement of fees costs goes directly to training providers (most cases). No preferential treatment is applied.