Apprenticeship training subsidy for unemployed

Name of the instrument - Local language: Oppisopimuskoulutus
Name of the instrument - English translation: Apprenticeship training subsidy for unemployed
Scheme ID: 222
Country: Finland
Reporting year: 2020
Type of instrument: Grant for companies
Sub-type of instrument: Support for wage costs
Type of entry: Single instrument

Short description: Companies employing former unemployed to prepare for a vocational examination while working as an apprentice can apply for a subsidy to municipal employment authorities. The employer pays wages and receives reimbursement. The amount of subsidy from municipal employment authorities to companies is based on the length of unemployment and covers 30% (less than 1-year unemployment), 40% (at least 1 year of unemployment), or 50% (at least 2 years of unemployment) of the payroll costs for a period not exceeding 12 months. No preferential treatment is applied. There is no limitation to re-use the grant.
Short description of the related instruments: Not applicable

Level of operation

National

Name of a part of the country

Not applicable

Name of the region (for regional instruments)

Not applicable

Name of the sector (for sectoral instruments)

Not applicable

Relevance

Further instrument

Legal basis

Legal regulations of the apprenticeship subsidy are part of the regulations on unemployed schemes, the education law, the labour law as well as collective agreements

Objective(s) and target(s)

Wage subsidy is a subsidy intended to promote the employment of an unemployed jobseeker, which the regional Employment and Economic Development Centre may grant to the employer for wage costs. The purpose of the subsidy is to improve the professional skills of an unemployed jobseeker and to promote employment in the open labour market.

Year of implementation

1995

Year of latest amendment

2017

Operation/management

The Public Employment Service is the main responsible implementing body, while the Ministry of Employment and the Economy holds the overall responsibility.

Eligible group(s)

All companies willing to hire an unemployed persons who are willing to take a vocational examination while working as an apprentice.

Group(s) with preferential treatment

No preferential treatment

Education and training eligible

Apprenticeship

Source of financing and collection mechanism

State budget (national and municipal)

Financing formula and allocation mechanisms

The amount of subsidy from municipal employment authorities to companies is based on the length of unemployment and covers 30% (less than 1 year unemployment), 40% (at least 1 year of unemployment) or 50% (at least 2 years of unemployment) of the payroll costs for a period not exceeding 12 months. The employer pays wages and receives reimbursement.

Eligible costs

Wage costs of apprentices

Volumes of funding

According to various sources, the total cost of apprenticeship education is around EUR 4 000 - 5 000 per year per an apprentice. Wage subsidies can be granted for apprenticeship training for the entire duration of the training.If the amount of support is based on the duration of unemployment, the amount of the wage subsidy is a maximum of 30%, 40% or 50% of the wage costs for the period of maximum 12 months, the rest of the training support is a maximum of 30% of salary costs.If the benefit is granted on the basis of an injury or illness of an unemployed person, the amount of the wage subsidy is 50% of the wage costs and the wage-subsidized period is throughout the training.A wage subsidy for apprenticeship training is granted to an employer engaged in business activities as de minimis aid.Assuming that an apprectice uses 2/3 of working time to learning, monthly salary is EUR 1 500, and the wage subsidy is 40%, then the average wage subsidy would be 12x400 = EUR 4 800 per year, which is rather well aligned with the costs of appreticeship training per apprentice per year. Total volumes of funding can be estimated using these crude estimates.

Beneficiaries/take up

Appreticeship training in:2016: 50 788 students and 13 035 graduates2017: 52 715 students and 13 669 graduates2018: 57 398 students and 16 845 graduates2019: 60 822 students and 17 398 graduates

Organisation responsible for monitoring/evaluation

The Finnish National Board of Education (FNBE)

Monitoring/evaluation reports available

Not available

Most relevant webpage - in English