The Industry Competence Development Fund

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.