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European Centre for the Development of Vocational Training

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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

Workplace-based learning

PDF Version
Financing of apprenticeship scheme
Scheme name
Workplace-based learning
Country
Estonia
Duration

3 months-2.5 years

Apprentices remuneration - characteristics

Type: wage paid by employer; fixed amount per hour or per month
Remuneration setting: centrally, by law
Coverage: on-the job training
Variation(s): no

Apprentices remuneration - amount

Average regulated remuneration: at least EUR 430 per month (i.e. the level of minimum wage in 2016); EUR 3,780 per year (assuming there are 9 months of studying in a year)
Level in PPS per month: 572.57; per year: 5,153.13
Level in PPS per hour (average): 4.95
Share of national minimum wage: by law, at least 100% (wage is equal to or exceeding the national minimum wage)
 

Time foreseen for on-the job-training

More than 50% of the overall duration of apprenticeship

Number of hours per year (average): 1,040 (estimate)
(calculation: apprentices must study per year 60 European credit points (1 point is 26 hours student work). 1/3 of the study will held in VET school and 2/3 in company. Thus, the number of hours is at least: 60*26*2/3=1,040 hour per year).

Distinction between work and training: not regulated, depends on a company. Some companies pay only for work, while some also pay for training. Apprentices must receive a minimum salary in the amount of EUR 430 per month (2016) if employee works 40 hours per week.
If, for example, an apprentice works 32 hours per week and receives 8 hours of training per week, some companies may pay EUR 430*32/40= EUR 344 per month and some companies may pay the full EUR 430 per month.

Apprentice social insurance

Paid by: the State
Rights: health and pension

Additional support for apprentice

Apprentices may receive from the state a study allowance to cover their travel and subsistence costs.

Financing on-the-job training

The wages are paid by employers. As regards social insurance contributions, there is no minimum obligation in relation to apprenticeship training. However, all apprentices have the State insurance.
The companies may receive grant (measure Policies of implementing work-based training) to cover the costs of remuneration of supervisors at the workplace.

Financing of the scheme overall

Public financing (national resources): EUR 994,696 (estimate)

EU funds are used to support development of apprenticeship training.
The relevant program started in October 2015 and first apprentices started studying in December 2015. The amounts are:
2015: EUR 15,00 (data refers to one month only, December)
2016: EUR 1,115,000
2017: the budget over 3,000,000 was foreseen at the time of this research
Source: ESF program PRÕM annual budget.

Wage cost to employers: EUR 1,991,760 (estimate)
(This is a rough estimation based on the number of state-funded apprenticeship places multiplied by the minimum salary paid to them for 12 months (386 apprentices x 430 EUR per month x12 months). Apprentices may receive lower wages if they do not work 40h per week.

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%).

Contextual information

Statutory minimum wage: EUR 430 per month (2016, S2); EUR 470 per month (2017, S1 and S2)
Average yearly working time (hours) for a full time job: 1,856

More on financing instruments for this scheme

Policies of implementing work-based training
Estonia
Grants for companies
Study allowance
Estonia
Grants for individuals

More on this apprenticeship scheme

Workplace-based learning
Estonia
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 of the scheme overall
  • Illustration: sources of funding and financial flows
  • Assessment of financing arrangements
  • Contextual information
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