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Financing Apprenticeships DB TopBar

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  • Introduction
  • Overview – mapping
  • Financing of apprenticeship schemes
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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 in upper secondary schools

PDF Version
Financing of apprenticeship scheme
Scheme name
Apprenticeship in upper secondary schools
Country
Sweden
Duration

3 years

Apprentices remuneration - characteristics

Type: allowance paid by the state or wage paid by employer; fixed amount per month
Remuneration setting: centrally (allowance) or by sectoral collective/social partner agreements (wage)
Coverage: on-the-job training
Variation(s): no

Apprentices remuneration - amount

Average regulated remuneration: EUR 200 per month in case of education contract: The standard EUR 100 per month, payable up to 9 months, available for all upper secondary students + EUR 100 per month of 'Apprentice compensation' as travel and meal cost reimbursement available specifically for on-the-job periods, payable up to 9 months.
Level in PPS per year (average): EUR 1,429.71 (The figure refers to the allowance paid by the State)
Level in PPS per hour (average): na
Share of national minimum wage: nap
Share of the average salary of worker: approx. 7-8% if the apprentice has an education contract only (which is most often the case) and receives the state allowance of EUR 200 per month.
Estimate is based on the average salary in vocational occupations, which generally ranges between EUR 2,500 EUR and EUR 3,000. If an apprentice has a work contract (which is rarely the case), in the construction sector the wages of the apprentice should be between 45% and 88% (45%; 60%; 65%; 75%; or 88%) of the wages of fully qualified craftsmen at the workplace. This would imply a wage of an approximate range of EUR 1,000 and EUR 2,650 per month, as the average wages of qualified construction workers lies at approximately EUR 3,000 per month. No data for other sectors.

Time foreseen for on-the job-training

Between 20-50% of the overall duration of apprenticeship
Number of hours per year (average): not available and cannot be estimated. According to law, at least 50% of an apprenticeship education must be carried out at one or several workplace. However, for each individual school and apprentice, the share of the education spent in school and in on-the-job training may vary strongly. The National Agency for Education does not collect this data and could give no estimate.

Apprentice social insurance

Paid by: employer, apprentice, the state
Rights: Many aspects of social insurance depend on residence rather than on employment status. Employment-related social insurance costs for apprentices occur only if the employer hires the apprentice on an apprentice employment contract, which is relatively rare. In such case, the general Labour Code applies and the standard provisions regarding social insurance, applicable on all employment forms, do apply (e.g. the Employment Protection Act). There is no social insurance, or social insurance costs, specifically for apprentices.

Employees are through social insurance entitled to the following work-based benefits: pregnancy benefit, parental benefit at the sickness benefit level and basic level, temporary parental benefit, income-based old age pension, sickness benefit, rehabilitation and rehabilitation allowance, occupational injury compensation, income-related sickness or activity compensation, benefit for care of closely related persons, child pension, adjustment pension, widow’s pension.

The following are residence-based benefits: parental benefit at the minimum level and basic level, child allowance, extended child allowance, adoption allowance if you adopt a child who does not live in Sweden or is not a Swedish citizen, maintenance support, housing allowance, special housing supplement for pensioners, old age pension in the form of guarantee pension, income support for the elderly, special pension supplement to old age pension for long-term care of a sick or disabled child, attendance allowance, disability allowance and childcare allowance, car allowance, rehabilitation and special allowance for rehabilitation, national dental care subsidy, compensation under reciprocal health care arrangement across Scandinavia, sickness benefit in special cases, sickness or activity compensation in the form of guarantee benefit, widow’s pension and adjustment pension in the form of guarantee pension, survivor’s support.

Financing on-the-job training

Students undertaking apprenticeship training usually do not have an employment contract but an education contract. They are regarded as 'students', are not paid wages, and are eligible to receive a monthly study allowance from the state (standard allowance, paid to all upper secondary students, plus 'Apprentice compensation'. In addition, the employer is entitled to a State subsidy for upper secondary apprenticeship.
The total amount of 'Apprentice compensation' in 2016 was approx. EUR 6.39 million and of the state subsidy to employers for the school year 2016-2017 approx. EUR 50 million.

Read more
(Exchange rate SEK 1 = EUR 0.104273, 11 July 2017. Sources: CSN (2016).
Kostnadsersättning till lärlingar 2013/14-2015/16. Kommenterad statistik. Rapport 2016:6, Diarienummer 2015-100-9484; National Agency for Education, ’Statsbidrag för gymnasial lärlingsutbildning’,
https://www.skolverket.se/skolutveckling/statsbidrag/yrkesutbildning/gy… ; National Agency for Education, ’Statsbidrag för gymnasial lärlingsutbildning för hösten 2016’, Diarienummer 2016:1351,
https://www.skolverket.se/polopoly_fs/1.257148!/Beslut%20gymnasial%20l%C3%A4rling%20ans%C3%B6kan%20ht2016.pdf)

As of July 2014, students attending apprenticeship in upper secondary school may be hired by employers on a so-called upper secondary apprentice employment contract. In such case, the apprentice is entitled to wages which are paid by the employer and often defined in sectoral collective agreements. The apprentice is not entitled to receive a study allowance from the state. The wage would be much higher than the amount of the state allowance (EUR 200 per month). Apprentice employment contracts are relatively rare. At the time of this research, there were only around 40 apprentices-employees, but an increase was expected.

Regarding social insurance, many of its aspects depend on residence rather than on employment status (see above). Employment-related social insurance costs for apprentices occur only if the employer hires the apprentice on an apprentice employment contract. In such case, employers, employees (apprentices) and the public sector all contribute to this insurance.
No EU funding involved.

Financing of the scheme overall

The total amount of 'Apprentice compensation' in 2016 was approx. EUR 6.39 million and of the state subsidy to employers for the school year 2016-2017 approx. EUR 50 million.

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

The 'State subsidy for upper secondary apprenticeship' directed at schools and employers may to some extent encourage employers to take on apprentices. The subsidy does, however, not seem to be either a strong motivator or a necessity for companies: only 3% of employers report the subsidy to be a prerequisite for them to take on apprentices, and one third report the subsidy to impact this decision.

Read more
Source: Ingrid Berglund, Gunilla Höjlund, Per Kristmansson & Enni Paul (2014). Arbetsgivarnas användning av statsbidrag för gymnasial lärlingsutbildning och deras erfarenheter av att ta emot gymnasiala lärlingselever. The Swedish National Agency for Education, Diarienummer 79-2013-:668. https://www.skolverket.se/polopoly_fs/1.213328!/Rapport-statsbidrag-gym…
Contextual information

No statutory minimum wage
Average yearly working time (hours) for a full time job: 1,664.30

More on financing instruments for this scheme

State subsidy for upper secondary apprenticeship education
Sweden
Grants for companies
Apprentice compensation
Sweden
Grants for individuals

More on this apprenticeship scheme

Apprenticeship education in upper secondary school (ISCED 3)
Sweden
On this page:
  • Duration
  • Apprentices remuneration - characteristics
  • Apprentices remuneration - amount
  • Time foreseen for on-the job-training
  • Apprentice social insurance
  • 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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