The Industry Competence Development Fund
- Name of the instrument - Local language
- Industriens Kompetenceudviklingsfond (IKUF)
- Name of the instrument - English translation
- The Industry Competence Development Fund
- Scheme ID
- 58
- Country
- Denmark
- Reporting year
- 2015
- Type of instrument
- Training fund
- Type of entry
- Example for a group of instruments
- Short description
Companies in manufacturing sector are obliged by collective agreement to contribute a fixed amount per employee (DKK 520) to a training fund and may receive contribution to their training costs in return. The eligible activities include: general education, secondary education, adult vocational training and tertiary education.The training fund secures that 85% of lost wages and 100% of course fees are compensated. Learners may also receive reimbursement for travel costs (if the travel time exceeds than 2.5 hours).
- Short description of the related instruments
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 on the various sectors funds.
- Level of operation
- Sectoral
- Name of a part of the country
- nap
- Name of the region (for regional instruments)
- nap
- Name of the sector (for sectoral instruments)
- Industrial sector
- Legal basis
Organisation Agreement on The Industry Competence Development Fund - Part of collective agreement.
- Objective(s) and target(s)
To ensure the development of employee's competences in order to maintain and strengthen companies' competitiveness in a globalized economy. The fund also aims to support the development of employee's competencies to maintain and strengthen their employment opportunities.
- Year of implementation
- 2009
- Operation/management
KUF was established as an agreement between Confederation of Danish Industry (employers association) and CO-Industry (federation of trade unions within industrial sector).
The training fund is administered by ‘kompetencefonde.dk’ which administers a wide range of sectoral training funds.- Eligible group(s)
Employees encompassed by the respective collective agreements who have been employed for a minimum of 6 months with the current employer.
- Group(s) with preferential treatment
None
- Education and training eligible
A wide range of training activities that focus on employment in the industrial sector and have been pre-approved by IKUF; different educational levels (general education, secondary education, adult vocational training and tertiary education).
- Source of financing and collection mechanism
Levy on companies - a fixed annual amount of DKK 520 per employee. Companies' contributions are collected through IKUF secretariat.
- Financing formula and allocation mechanisms
An employee can receive wage compensation of maximum 74 hours (10 working days) per calendar year. However, if an employee has not used the training fund in the previous 2 years, he/she can accumulate and receive compensation for up to 222 hours in a given calendar year. The training fund secures that 85% of lost wages are compensated. Course fees are also compensated (100%) and in some circumstances also travel costs (if the travel time exceeds than 2,5 hours). The employee cannot receive any wages during the training period to be eligible to compensation.
Allocation: Money is transferred directly to the learner's bank account after sufficient documentation has been received by IKUF. Reimbursement principle.
- Eligible costs
Fees and other costs related to education and training (e.g. travel costs, lost wages)
- Frequency of the use
Each year
- Volumes of funding
na
- Beneficiaries/take up
na
- Organisation responsible for monitoring/evaluation
‘kompetencefonde.dk’
- Monitoring/evaluation reports available
na
- Most relevant webpage - in English
na
- Most relevant webpage - local language
- Sources
https://www.ikuf.dk/media/9660/organisationsaftale_tekst_til_hjemmeside…
- Short description
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Legal basis
- Objective(s) and target(s)
- Year of implementation
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Frequency of the use
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Monitoring/evaluation reports available
- Most relevant webpage - in English
- Most relevant webpage - local language
- Sources