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Financing Apprenticeships DB TopBar

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  • Introduction
  • Overview – mapping
  • Financing of apprenticeship schemes
  • Financing instruments
  • Cross-country overview
  • Cross-country comparison
  • Scope and glossary
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Database on financing apprenticeships in the EU

Financing Apprenticeships DB

  • Introduction
  • Overview – mapping
  • Financing of apprenticeship schemes
  • Financing instruments
  • Cross-country overview
  • Cross-country comparison
  • Scope and glossary
  • Feedback
  • Advanced search

Apprenticeship

PDF Version
Financing of apprenticeship scheme
Scheme name
Apprenticeship
Country
Denmark
Duration

2-4 years (depending on sector)

Apprentices remuneration - characteristics

Type: wage paid by employer; fixed amount per hour or per month depending on trade and sector (private/public); or allowance paid by the State (SU support, Grants and Loans scheme) if an apprentice does not have an agreement with a company, but does a school-based apprenticeship
Remuneration setting: by collective agreements
Coverage: on- and off-the job training
Variation(s): wages differ by apprenticeship year, apprentice's age, trade, sector

Apprentices remuneration - amount

Average regulated remuneration: EUR 12.8 per hour
Share of national minimum wage: not applicable
Share of the average salary of worker: 30-70% (estimate; the share increases with apprenticeship year and depends on the sector)

Remuneration (annual gross income) in 3 selected occupations (EUR):
hairdresser: 1st year: 17,611; 2nd: 20,090; 3rd: 22,249; 4th: 24,051
motor mechanic: 1st year: 17,533; 2nd: 19,887; 3rd: 21,361; 4th: 24,722
bricklayer: 1st year: 18,257; 2nd: 22,188; 3rd: 24,852; 4th: 29,287

Remuneration for age groups, average annual gross income:
15-19: 1st year: EUR 17,800; 2nd year: EUR 20,700; 3rd year: EUR 22,800; 4th year: EUR 26,000
20-24: 1st year: EUR 17,800; 2nd year: EUR 20,700; 3rd year: EUR 22,800; 4th year: EUR 26,000
25 and above: EUR 29,894

Time foreseen for on-the job-training

More than 50% of the overall duration of apprenticeship
Number of hours per year (average): 1,110
(estimation: 30 weeks x 37 hours per week; the number of weeks of on-the-job training varies according to trade and previous qualifications).

Apprentice social insurance

Paid by: Unemployment Insurance Funds, largely financed by the State
Rights: Health and unemployment (unemployment 'uninsured')

Paid by: employer and employee
Rights: pension

Paid by employee:
Right: Higher unemployment benefits (unemployment 'insured')

Additional support for apprentice

Students aged 18 or above enrolled in the 'basic course' that do not have an apprenticeship agreement with a company yet receive SU support.

Financing on-the-job training

Employers pay the wages to the apprentices, however, they get reimbursement from the training fund (AUB, Employers training contribution) for the part of the wages paid while the apprentice is at school. The training fund is based on the levy on companies; the State contributes to the fund covering the part of the cost of students' remuneration corresponding to the SU support (Grants and Loans scheme).
Companies which either increase the number of apprentices compared to the average number of apprentices in company or recruit apprentices from a so-called 'advantage-education' (fordelsuddannelse, i.e. in specialties with increased job demand) are entitled to receive a 'bonus scheme'.

Regarding social insurance, in Denmark, unemployment insurance is a voluntary scheme administered by the unemployment insurance funds (A-kasser). The Danish system thus differentiates between the situation for the unemployed who are insured and those who are uninsured. Unemployment insurance funds are private associations of employees or self-employed persons organised for the sole purpose of ensuring economic support in the event of unemployment in all occupations and industries. Unemployment insurance is, however, largely financed by the State. Pension contributions are paid by the employer (as part of the salary) and employee/apprentice, while the contributions related to unemployment benefits on a higher level (insured*) are paid by the employee/apprentice.

No EU funding involved.

Financing off-the-job training

Public funding (EUR): 750,336,021 (2016, estimate)
The estimation is based on the figures from the 2016 State budget and include the following categories: basic state contribution to the VET institutions and taximeter contribution (main part of the public financing. It is calculated individually for each institution based on the number of annual students and a fixed fee per annual student. The fee is determined each year as part of the state budget). There might be other costs involved where data is not available.

Companies contribution: From the signing of the apprenticeship contract between the student and the company, the company pays apprentice remuneration (wages) for the time the apprentice is at school (off-the-job training).

No EU funding involved.

Illustration: sources of funding and financial flows
Assessment of financing arrangements

The data on how VET students are using study loans, allowances etc. is available but the sample of apprentices is null.
The report monitoring employers’ attitude and readiness to be engaged in workplace-based learning and apprenticeship which is carried out by Estonian Employers´ Confederation indicates that employers are interested in apprenticeships when they can train own employees (46%), VET institution or government pays for the trainers' salary (42%), VET institutions train trainers (45%), and companies are reimbursed for the costs of apprenticeship training (35%).

Labour market outcomes

The evaluation shows that after a year, 70% of the unemployed adults who have completed the apprenticeship are employed (compared to 58% in the control group).

Contextual information

No statutory minimum wage
Average yearly working time (hours) for a full time job: 1,635.40

More on financing instruments for this scheme

Bonus scheme
Denmark
Grants for companies
Grant and loan scheme
Denmark
Grants for individuals
Employers training contribution
Denmark
Training funds

More on this apprenticeship scheme

Apprenticeship
Denmark
On this page:
  • Duration
  • Apprentices remuneration - characteristics
  • Apprentices remuneration - amount
  • Time foreseen for on-the job-training
  • Apprentice social insurance
  • Additional support for apprentice
  • Financing on-the-job training
  • Financing off-the-job training
  • Illustration: sources of funding and financial flows
  • Assessment of financing arrangements
  • Labour market outcomes
  • Contextual information
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