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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 training

PDF Version
Financing of apprenticeship scheme
Scheme name
Apprenticeship training
Country
Finland
Duration

1-3 years (depending on programme)

Apprentices remuneration - characteristics

Type: wage paid by employer; depends on the contract but fixed amount per month is the most common
Remuneration setting: by collective agreements
Coverage: on- and off-the-job training
Variation(s): by apprenticeship year, trade, qualification, place of living (the higher living costs, the higher the wage)

Apprentices remuneration - amount

Average regulated remuneration: EUR 1,600 per month (wages vary between EUR 1,300-1,800 as set in the collective agreements)
Level in PPS per month (average): 1,321.22; per year (average):
Share of national minimum wage: not applicable
Share of the average salary of worker: approx. 67% of the median wage

Remuneration (annual gross income) in 3 selected occupations (EUR):
hairdresser: 1st year: 13,440; 2nd: 13,440; 3rd: 13,440; 4th: nap
motor mechanic: 1st year: 19,260; 2nd: 20,486; 3rd: 21,795; 4th: nap
bricklayer: 1st year: 21,000; 2nd: 24,000; 3rd: 25,000; 4th: nap
Instead of motor vehicle engineer, vehicle mechanic is used since engineering level studies are not possible as apprenticeship. Typically apprenticeship training lasts no more than 3 years - for that reason wages for 4th year are not specified here - even though sometimes it may take that long. These figures are estimates (in the 3 selected occupations there are usually hour rates).

Time foreseen for on-the job-training

More than 50% of the overall duration of apprenticeship
Number of hours per year (average): 1,360 (estimate). The minimum is 25 hours per week.
(working year is approx. 1,700 hours; apprentices usually spent 80% of the time on-the-job).

Apprentice social insurance

Paid by: employer
Rights: health, pension, unemployment, sickness, annual leave

Additional support for apprentice

As a general rule, apprentices do not get directly any support since they are paid wages. However, the apprentices who do not get paid for off-the-job training (school) days are entitled to receive the allowance to cover their living expenses during off-the-job training days. The support includes daily allowance, family allowance, travel allowance and accommodation allowance. The level of support will also depend on the number of school days and the family situation.

Financing on-the-job training

Costs of wages and social insurance are fully paid by employers. Employers may benefit, however, from the state grant Training compensation.
Public funding: approx. EUR 21,000,000

Financing off-the-job training

Off-the-job training is funded from public sources. The State allocates approx. EUR 85,000,000 to the vocational institute for training, however, it is unclear how much is allocated to apprenticeship training.
Companies may pay wages for off-the-job training depending on the individual contractual agreements and in some cases on collective agreements.
No EU funding involved.

Financing of the scheme overall

Public financing (national resources): EUR 10,665,000 (estimate).
No EU funds involved.

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

The strength is that the funding is attractive for apprentices since they receive a full wage unlike any other students. The cost of apprenticeship is relatively low for the public sector since the private sector covers the major share of costs and the labour market outcomes are better since companies are typically training apprentices to fulfil their existing recruitment needs. The negative side is that apprenticeship is not very popular in Finland. That is mainly because companies do not use this pathway widely.

Trends

The dropout rate from apprenticeship is quite high, around 40 %. But there is no data when it is the apprentice who drops out and when the company makes that decision. Either way – the apprentice contract would be terminated. The apprenticeship is based on fixed-term contract and in line with the Finnish legislation, terminating it is not easy. For this reason, it could be assumed that the withdrawals are more often the result of the decision of the apprentices.

Contextual information

No statutory minimum wage. The median wage is around EUR 3,000 per month.
Average yearly working time (hours) for a full time job: 1,695

More on financing instruments for this scheme

Training compensation
Finland
Grants for companies
Daily allowance, family allowance, travel subsidy, accomodation subsidy
Finland
Grants for individuals

More on this apprenticeship scheme

Apprenticeship training
Finland
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
  • Financing of the scheme overall
  • Illustration: sources of funding and financial flows
  • Assessment of financing arrangements
  • Trends
  • Contextual information
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