Internship-AUB (Internship bonuses)

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Name of the instrument - Local language
Praktikplads-AUB
Name of the instrument - English translation
Internship-AUB (Internship bonuses)
Scheme ID
277
Country
Denmark
Reporting year
2020
Type of instrument
Grant for companies
Sub-type of instrument
Support for direct costs
Type of entry
Single instrument
Short description

Internship AUB is a scheme under the Employers' Reimbursement System (AUB Fund). The instrument is an incentive for the Danish firms to establish more internships for students within vocational education. All employers that have paid contribution to the Danish labour market supplementary pension fund (ATP) for at least one full-time vocational trained employee will annually get a self-assessment with a statement of how many internships they have to establish the coming year. If the employer hired more than the fixed number of interns, they will receive a bonus for every intern hired. Firms that reach the number of established internships for students in vocational education will get a fixed bonus of DKK 25 000 DKK (approx. EUR 3 345) for every extra intern annually. The firms that do not reach the number of interns will have to pay an extra contribution to the Danish labour market supplementary pension fund.

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
Lov om Arbejdsgivernes Uddannelsesbidrag ("Act on the Employers Education Contribution")
Objective(s) and target(s)
The Internship-AUB scheme was adopted with the collective agreement from 2016 "Tripartite agreement on a sufficient and qualified workforce in all of Denmark and internships". The objective of the agreement was to strengthen the vocational educations, among other things by increasing the number of internships accessible for students.
Year of implementation
2016
Year of latest amendment
2017
Operation/management
The social partners are a big part of the adult and continuing training in Denmark. The big tripartite agreements (2016 and 2017) between the Danish Confederation of Trade Unions, The Confederation of Danish Employers and the Government have structed the changes in the sector the latest years. The tripartite agreement from 2016 "Tripartite agreement on a sufficient and qualified workforce in all of Denmark and internships" introduced the Intership AUB Scheme, while the tripartite agreement from 2017 "strengthening the flexibility and quality in adult education and training" Increased the bonuses for firm hiring the set number of interns from DKK 15 000 to 25 000 .
Eligible group(s)
The eligible group are employers who have reported full supplementary pension contributions (ATP-bidrag) for more than one full-time, vocationally trained employee in the previous year. The instrument however helps to ensure more internships possibilities for students at the vocational education.
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
The objective of the scheme is to increase the provision of internships for students in vocational educaiton and to better share the burden of providing internships between firms.
Source of financing and collection mechanism
Contributions made for not meeting the minimim number of internships are used to fund the incentive for providing more than the minimum number.
Financing formula and allocation mechanisms
The AUB internship is a part of the Employers' Reimbursement System (AUB Fund). In the agreement from 2016, it was stated that the bonuses for companies reaching the number of interns, whould be funded by the extra money from companies, that did not reach the target number of internships. However, in the agreement from 2017 the bonuses were increased to DKK 25 000 and ensured despite the accounting of the intership-scheme (paid within the AUB Fund).
Eligible costs
Not applicable (lump sum per additional place provided)
Volumes of funding
There are defined ceilings, the bonuses paid are in line with the number of companies reaching their targets. In 2019, DKK 260 000 000 000 (approx. EUR 34 798 902) were paid to companies reaching the number of internships.
Beneficiaries/take up
Not available
Organisation responsible for monitoring/evaluation
AUB is a self-governing institution which is administered and monitored by Arbejdernes Tillęgspension (ATP). ATP administers a number of welfare and social security schemes. The Ministry of Education is responsible for the legal aspects related to the AUB schemes.
Most relevant webpage - in English
https://indberet.virk.dk/arbejdsgivernes-uddannelsesbidrag-english/arbe…
Most relevant webpage - local language
https://virk.dk/vejledninger/arbejdsgivernes-uddannelsesbidrag/praktikp…
Recent changes

01-09-2017. With the tripartite agreement between the government and the social partners from 2017 the bonus was increased from15.000 DKK per intern to 25.0000 DKK ) per intern. Furthermore the bonus was made into an uncondtional right of the employers achieving the numbers of interns forseen (independent of the overall budgetary situation of the Danish labour market supplementary pension fund).

Recent changes in response to COVID-19

No changes

Sources
ATP (yearly reports for AUB): http://www.atp.dk/resultater-rapporter/aars-og-kvartalsrapporter/aub
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