Title Reporting year Type of instrument Type of entry Level of operation Relevance Year of implementation
Agreement on compensation for training expenses

Employers and employees can agree on a payback clause for training-related costs. Thereby, the employee will work for the employer during an agreed period (no more than 3 years) for the purposes of compensating for the training expenses incurred. Eligible types of training include internal and external courses, continuing vocational training courses, on-the-job training, job rotation, exchanges, internships or study visits, and participation in learning or quality circles as well as self-directed learning. No preferential treatment is applied.

2020 Payback clause Single instrument National Further instrument 2009
Degree study allowance

All individuals meeting at least one of the pre-determined criteria (i.e. applicant has completed basic or general (and not professional or vocational) secondary education at least five years ago, or has obtained professional or vocational education 15 years ago or earlier, or do not continue working in the current position due to health-related circumstances, or is employed and is between 16 years old and retirement age) can apply for a financial grant. The preferential treatment for particular applicants is not applied. The applicant receives a fixed monthly allowance directly to her/his bank account. The amount of the grant allocated per person depends on the nominal study period. The maximum amount for employed persons is EUR 180 per month, for unemployed persons EUR 270 per month. The allowance can be used to cover training costs. In order to receive a fixed monthly allowance, a trainee has to attend training on a regular basis. There is an opportunity for re-use of the grant for different educational levels (BA, MA, PhD)

2020 Grant for individuals Single instrument National Key instrument 2017
Labour market training with a training card

All employed individuals meeting at least one predetermined criteria can apply for a financial grant for up to EUR 2 500 in three years. The allocated fund can be used to cover tuition fees for the training (incl. programmes leading to the formal qualification (ISCED 2-5), general courses, occupational courses connected to the present economic activity, occupational courses of all kinds, non-formal education, and ICT sources of different levels). The grant is funded under Unemployment Insurance Fund, the National budget, and ESF. The funding is directly transferred (reimbursement principle) to the training institution (voucher principle) if the requirement of regular attendance of the trainee has been met. There is no opportunity to re-use the grant (EUR 2 500 and 3 years limits)

2020 Grant for individuals Single instrument National Key instrument 2017
Study leave

Employees of the private sector and public servants may be granted study leave (max 30 days per year) in order to participate in education and training. For formal and work-related study leave, the employer is obliged to pay an average salary of up to 20 calendar days. Each employee is also entitled to 15 days of training leave for finalizing studies/graduation from formal education. No preferential treatment is applied. The scheme can be re-used by same applicant once in each calendar year. The Ministry of Education and Research is responsible for regulation.

2020 Training leave Single instrument National Key instrument 1993
Study loan

An applicant meeting predetermined criteria (i.e. persons studying full-time or part-time for 6 months or more at post-secondary or tertiary level, including studies abroad) can apply for a student loan. The maximum amount of study loan is EUR 2 500 per year. The loan system is financed through public funds and private commercial banks. The loan is disbursed each calendar year and is directly transferred to the loan taker with no risk assessment applied. The interest rate of the loan is variable (according to Euribor fluctuations), however, it cannot exceed 5% for the borrower. If the interest rate exceeds 5%, the State pays the margin to the commercial lender. The interest rate applies to all borrowers. The payment period of the interest starts after or during graduation. The State compensates interest rate in cases if the borrower performs military service, or is a single parent with a child who is younger than three years old. The State also pays an interest rate for a resident physician until the completion of residency. The repayment of the loan starts 12 months after graduation or during studies. The maximum period over which the loan should be repaid is 20 years. The loan repayment can be forgiven for civil servants and employees of central or local government institutions or legal persons in public law (e.g. universities) who have been working there a minimum of 12 months and completed their studies before 1 July 2019; for persons who have a disability or takes care of her/his child having a disability.

2020 Loan Single instrument National Key instrument 2003
Support for obtaining qualifications

All individuals meeting pre-determined criteria (i.e. individuals who obtained a qualification within no longer than 3 years or employed persons who have completed a respective labour market training arranged by Unemployed Insurance Funds or for whom an employer received the training grant) can apply for a financial grant for up to EUR 500 within 3 years (the minimum amount of funding is not set). The fund is allocated under the budget of Estonian Unemployment Insurance Funds. The fund can be used for obtaining formal qualifications (ISCED 2-5). The grant is transferred (the costs are reimbursed) to an individual or employer, who covered training costs, only when the participant receives a positive exam evaluation. There is no opportunity to apply for a grant more than once.

2020 Grant for individuals Single instrument National Key instrument 2015
Training expenses reducing the taxable income, tax credit

Adults can deduct costs related to continuing vocational training for their current occupation or a future occupation from the base of their individual income tax. The state co-funding - in the form of foregone tax revenues - equals eligible costs multiplied by the tax rate of 20 %. The eligible group of applicants includes persons enrolled in formal education and their family members in descending line enrolled in formal education and younger than 26 years old. Eligible costs include tuition fees and costs for teaching material. Furthermore, tuition fees of relatives in descending line (fees for kindergarten, tuition fees for the higher education of children) can be deducted. Individuals with no taxable income (an annual gross salary below EUR 6 000) cannot profit from the tax deduction. The annual limit is EUR 1 200 per person (including housing loan interest and other deductions) but the deductions exceeding this limit can be transferred to a spouse. The tax incentive can be used once in each calendar year.

2020 Tax incentive for individuals Single instrument National Key instrument 2000
Training grant for employers

All companies can apply for a financial grant providing co-funding to the training of employees. The training grant for employers can be used for the following activities: 1) to recruit and train employees for the specified/prioritised professions; 2) to (re)train employees due to changing circumstances (e.g. restructuring of the company, adoption of new technologies, updated qualification requirements); and/or 3) to help employees develop Estonian language skills. An employer can design a training plan for each employee consisting of multiple training with a total duration of at least 80 academic hours and up to one year. In general, up to 50% of training costs are compensated but no more than EUR 1 250 per employee. For employees over 50 years old, with no vocational education and/or no sufficient Estonian language skills or significant health problems, up to 80% of costs is compensated (no more than EUR 2 000). If an employee was hired through the Unemployment Insurance Fund where s/he was previously registered as unemployed, up to 100% of training costs are compensated (no more than EUR 2 500). It is financed out of the unemployment insurance contributions (which are compulsory and shared between employees and employers in Estonia). This support measure is part of the larger Work and Study 2017-2020 programme, which supports training activities in priority sectors that were identified in sector-specific labour studies (OSKA reports) conducted by the Estonian Qualification Authority (Kutsekoda).

2020 Grant for companies Single instrument National Key instrument 2017