Private legal entities, state and municipal enterprises in a partnership with licensed vocational training providers, business associations, private legal entities, chambers of commerce, industry, and crafts are considered eligible groups for this scheme. The purpose of this measure is to ensure continuous maintenance of the qualification level of employees, their professional mobility, and their ability to quickly reorient to the activities of another sector of the economy. Companies can choose an effective form of employee training, e.g. apprenticeships. The maximum possible amount of project funding is EUR 360 000 with a co-funding rate of 50-70% of EU funding. Eligible costs are broad, including salary costs for teachers, travel expenses, etc. Preferential treatment is established depending on the company size and for employees from vulnerable groups.
Companies can apply for this non-refundable grant to raise the qualification and build the capacity of their employees, and better adapt to the ever-changing labour market requirements. The applicant is a private legal entity or a state or municipal enterprise operating for at least one year (registered in the Register of Legal Entities) and had insured persons every month for at least 6 months before the month of submission of the application. The maximum possible amount of project funding is EUR 4 500 with a co-funding rate of 50-70% of EU funding, 30-50% of private funding. Continuing vocational education and training is considered an eligible type of training. Eligible costs include tuition fees and opportunity costs. Preferential treatment is established depending on the company size.
Groups of companies brought together by a project promoter (usually a business association or cluster coordinator) can benefit from this grant. Project partners must be companies belonging to one sector and it is expected that the implementation of the projects will provide specialized sectoral training that meets the common needs of the companies in the sector. The maximum possible amount for one project depends on the call. The co-funding rate ranges from 50% to 70%. Continuing vocational education and training (CVET) is considered as eligible type of training.
The Lithuanian Labor Code includes a general clause on the reimbursement of training costs incurred by the employer in case the trained employee resigns from employment without a valid reason and before the end of the agreed binding period. Only expenses incurred by the employer during the last two years before the termination of the employment contract may be reimbursed unless the collective agreement provides for a different term, which may not exceed three years. The amount/share to be reimbursed depends on the cost of the training and the time elapsed between the training and the termination of the contract. Only costs related to the provision of knowledge or skills of the employee in excess of the requirements for the work activity may be reimbursed. The agreement may specify whether other mission expenses (travel, accommodation, etc.) are included in the costs of training or further training.
State loans and State-supported loans to students were introduced to support students in initial education to cover tuition fees in higher education and living costs during full-time education. The state covers administration costs (loans provided by the State), provides a loan guarantee (in case of default) and pays interest rates for specific target groups. The total amount of loans received by the borrower, excluding interest, may not exceed 385 basic social benefit amounts. The loan repayment term is 15 years. Loans are provided at variable interest rates: EURIBOR (euro interbank market interest rate calculated by the European Banking Federation) + bank margin set by the credit agreement. No preferential treatment is applied.
This scheme is intended to fund the recognition of competencies acquired through non-formal and informal learning for the individual to obtain a diploma or a certificate attesting to their competence. The highest amount of funding (provided as a lump-sum payment) for one person cannot extend the 0.47 of the minimum monthly salary approved by the government (EUR 301). All unemployed individuals are eligible for this scheme. No preferential treatment is applied.
Adults can deduct costs related to continuing vocational training for their current occupation or a future occupation from the base of their individual income tax. The state co-funding - in the form of foregone tax revenues - equals eligible costs multiplied by the marginal tax rate (between 5% and 32%). Co-funded training is expected to sustain or increase future income, implying higher tax revenues later on. For the deduction, a ceiling is introduced (25 % of the income). Eligible costs include tuition fees/fees for participation (external providers). Individuals with no taxable income (an annual gross salary below EUR 4 800) cannot profit from the tax deduction. The tax incentive can be used once in each calendar year.
Through this grant foreign investors who have enterprises in Lithuania can apply for funding to create conditions for employees of foreign investors to acquire specific competences and adapt to economic changes. Continous vocational training is eligible for funding. The maximum possible amount of project depends on the call. The co-funding rate varies between 50% and 70%, depending on the size of the company and whether it includes trainees from vulnerable groups. All type of training-related costs is eligible.
A studying employee can take training leave, which should be agreed upon with the employer. The training leave can be paid and unpaid (i.e. covering salary costs or not). It must be paid (at least the average monthly salary) for employees whose employment relationship with the employer has lasted for more than five years. In addition, it is paid in cases if the employee was sent for training or taking admission exam to higher education institution by employer initiative. Otherwise, the payment depends on the individual or collective agreement. Public authorities are involved only as observers. The eligible duration of the training leave is 0-30 working days.
Companies of the financial sector are obliged to contribute a fixed share of payroll costs (1.5%) to a training fund which, in return, provides funding for training employees of the financial sector for the banking environment in Luxembourg and the various trades that the industry offers. Eligible types of training include areas such as insurance banking, business management, law, fiscal law, economy, financial management, pedagogy. Fees and other costs related to training (such as costs of materials) are considered eligible costs to be funded. No preferential treatment for a particular group of beneficiaries is applied.
Based on a collective agreement, employers of the construction sector contribute to a training fund and receive subsidies for their training costs from the fund. EU-funds support the training fund (50% of the fund's budget, approx. EUR 3 000 000). The remaining EUR 3 000 000 are raised through the levy on companies in the sector (0.65% of the payroll). Professional education and training, research, and development in the building sector are considered eligible types of training. No preferential treatment for particular eligible groups is applied.
Employers can receive public contributions to the incurred eligible training costs. Companies receive 15% of the eligible training costs of a year (for wage costs of low qualified young adults and for employees 45+, they can receive a contribution of 20%). Upper ceilings for the public contributions per company apply, (20% of total payroll for companies with 1 to 9 employees; 3% for companies with 10 to 249 employees; 2% for companies with more than 249 employees). Continuous education and training are considered as an eligible type of training to be funded. At least 50% of training time should be scheduled within normal working hours. Eligible training also includes external and internal training, firm/sector-specific and transferable, workplace adaptation training, on-the-job training, self-learning, and e-learning, conferences, fairs, and exhibitions. Training is not cumulable with training provided under the 'individual training leave' scheme. The same applicant can use the scheme once in each calendar year.
Workers may take a training leave of a maximum of 20 days within 2 years (80 days over the entire employment career). The training programme does not necessarily have to be directly related to the individual's occupation. The leave made available corresponds to 1/3 of the number of the course hours taken (e.g. one day for a 24 hours course). The State provides individuals with a wage compensation for each day of which is equal to the beneficiary's average daily wage. This also applies to self-employed workers. The wage replacement is capped by the equivalent of four times the daily minimum wage.
Workers may take a language training leave with a maximum of 200 hours over their entire professional career. Any Luxembourgish language courses which are taught either in Luxembourg or abroad are eligible. The Ministry of Labour and Employment reimburses 50% of the training costs to the employer based on the daily wage of the worker (wage compensation). Salaried workers benefiting from the language leave are entitled, for each hour on leave, to a compensatory allowance that is equal to the average hourly wage. The eligile duration of the training leave is 10-25 working days.
Employers and employees can agree on a payback clause for training-related costs. The law establishes minimum standards that should be considered for the design of agreements between social partners or within companies. Conditions on payback clauses established in the Labour Code can be amended or replaced by collective agreements at the sectoral or company level provided that such conditions are less strict than the national regulations. Employees can be requested to reimburse the cost of employer-financed training incurred in the last 3 years if the employment contract is terminated on the initiative of the employee or by the employer due to a serious instance of employee misconduct. The employee cannot be obliged to reimburse training that benefits the company only (compulsory or firm-specific training).
Based on a collective agreement, temporary work agencies contribute a fixed share of payroll (0.6%) to a training fund. In return, the temporary work agencies receive funding for implementing sectoral training programmes. The maximum amount that a temporary work agency may receive is up to the amount of the entity's contribution to the training fund reduced by the operational cost of the fund. No preferential treatment for a particular eligible group is applied. For temporary workers, the main focus of training is on health and safety and employability. For permanent employees, the main focus is on induction training and continuing training.
For adults (irrespective of age) in secondary and HE, a grant for meeting the living costs during higher education is available in case their gainful income is below the minimum wage. For anyone else, a loan scheme is available. The grant consists of a basic grant of EUR 1 050 per semester and a 50% contribution to HE fees capped at EUR 3 700. Further 50% are available as a loan. The grant can be also expanded with the help of the loan for meeting tuition costs. The state provides a guarantee for the loans. The level of support provided is subject to regular adjustments.
Any person taxed on his/her income that he/she receives from paid work may deduct professional development expenses from his/her taxable income. The state co-funding - in the form of foregone tax revenues - equals the eligible costs multiplied by the marginal tax rate (between 8% and 42 % plus a 7-9% contribution to the Employment fund). The minimum earning per year required to apply for the scheme is EUR 11 265. The professional development costs must have a direct link to the professional activity performed by the employee, be paid for by the employee, and should enable the employee to update his/her professional skills and to progress in his/her professional activity. Professional training costs which cover expenses incurred in order to gain the knowledge required for a future profession or a change of profession, are non-deductible. Eligible expenses include registration fees for continuing training borne by the employee, the costs of buying books, insofar as they are purchased on a wholly professional basis (specialist books that are not of general interest). The location in which the training is held is not taken into consideration. The net effect of the deduction of training costs depends on the level of income and the type of taxpayer. The same applicant can use the scheme once in each calendar year.
Employees with two or more years of tenure (irrespective of the type of employment contract) can formally request an unpaid leave for participating in formal education or CVET programmes from their employer. The duration of the unpaid leave needs to be longer than four consecutive weeks and can last for up to six consecutive months. The required period of notice is two months for leaves up to three months and four months for leaves longer than three months. Over the employment history with one employer, unpaid leave is available for a total of up to two years. Employers cannot deny unpaid leave but can postpone it for up to two years due to important organisational reasons. For employees in micro enterprises and for members of the top management, employers may refuse to grant the unpaid leave.
Employed and self-employed persons attending one of the JobsPlus courses and whose weekly wage does not exceed EUR 300 (basic) per week can apply for this grant. Employed individuals following these courses can benefit from a financial grant of EUR 25 per week provided that they attend a minimum of four hours of training per week. The grant is given to an individual upon successfully completing the whole course. JobsPlus offers training courses in various areas including literacy and numeracy, computing, trade, technical, accounting, clerical work, and care services. Payment is based on the hours an individual attends and the duration of the course. Persons who terminate or drop out of the course, and/or have absences, which preclude them from sitting for the final assessment, are not eligible to claim this allowance.
Individuals having completed an approved course of studies leading to a certification, diploma, degree, or post-graduate degree course will benefit from a tax credit of 70 % of the eligible costs. Qualifications shall be considered eligible if approved as level 3 or higher by the Malta Qualification Framework (MQF). The maximum amount depends on the course taken and are capped as follows: MQF level 3 capped at EUR 1 500; MQF level 4 at EUR 2 500; MQF level 5 at EUR 3 500; MQF level 6 at EUR 12 500; MQF Level 7 at EUR 15 000; MQF Level 8 at EUR 25 000; Other courses are capped at EUR 2 000. Individuals with no taxable income (an annual gross salary below EUR 9 100) cannot profit from the tax deduction. The tax incentive can be used once in each calendar year.