All companies can deduct all their training costs from their taxable profits. The amount of deduction is related to the number of hours of training and the hourly minimum wage. The maximum of deductable hours is 40 hours per year, corresponding in 2020 to EUR 406. Above this amount is not deductible. There is no preferential treatment by size or type of training. Eligible types of education may include all types of education and training, provided that they are in accordance with the needs of the company. Eligible costs include tuition fees/fees for participants (external providers), as well as some additional costs.
Any person (employee, public servant) can ask his employer for a leave of absence to prepare for the validation of acquired experience (VAE) or to participate in the validation tests while retaining his salary and benefiting from funding to pay the training provider. The person must have one year's professional experience (1 607 hours) related to the targeted certification. The maximum duration of the leave is 24 hours of work time (consecutive or not) per validation. The employer cannot refuse the leave but can delay it if justified. The employee must prove that the leave has been used for the purpose of what it was granted.
Individuals receive State-funded contributions to their costs for education and training. Specific groups defined by their status of vulnerability who are defined by being employed 15 hours or more per week, having an income of a maximum of EUR 20 000 per year (individual) or EUR 40 000 per year (household income) can apply for the grant. The eligible education and training activities include individual professionally related training. That means that the selected training measure for the participant must be relevant for his/her professional life - regardless of the current job. The co-funding share is 50% and max EUR 500 of the costs for training and education. No preferential treatment is applied. The scheme is governed by the Federal Ministry of Education and Research. The scheme can be used once in each calendar year.
Employers, legal associations; public and independent organizations for child and youth welfare located in Brandenburg are eligible for this grant, which subsidizes training measures up to 50%of the eligible expenditure. Eligible types of training include professional further training measures for employees and business owners who work in a permanent establishment. Tuition fees (for courses and exams) are considered eligible costs. The requested grant must be at least EUR 1 000. The grant per application may not exceed EUR 3 000 per participant. There is no limitation for reusing the grant.
Unemployed and employed people with risk of losing their job can apply for this training voucher covering 100% of course costs. No preferential treatment is applied. In addition, travel costs and other additional expenses can be funded. Funding is provided after mandatory counselling at the Federal Employment Agency, which decides on the funding on a case by case basis. The same person can apply for the scheme after a break of a particular period.
In 2020, in 14 out of 16 German Federal States (Länder), employees have a right vis-ą-vis their employers to a short paid educational leave (no regulation on leaves are established in Bavaria and Saxony). Typically, employees have the right to 5 days of paid educational leave per year, which could be blocked to 10 days in 2 years. Some States allow leaves for up to 20 days. Berlin gives a right for 10 days for workers up to 25 years of age. Saarland is the only Federal State, which requires employers only to provide for 3 days of paid and further 3 days for unpaid leave. During their leaves, employees can attend either civic education or continuing vocational training. Employees continue to receive wage payment during the leave and retain all rights vis-ą-vis the employer and the social security system. Employers bear the wage costs. Exceptions are only Rhineland-Palatinate (providing a lump sum per day of leave to companies with up to 50 employees) and Mecklenburg-Vorpommern (refunding a lump sum of EUR 110 for each day of leave for civic education and EUR 55 for each day of leave for CVT). There is no statistical overview on beneficiaries across the German Federal States. According to one estimate, roughly 1 per cent of the employees uses leave each year, however, with considerable differences across the Federal States.
Employees who have been employed for at least 6 months with the current employer have a right to paid educational leave for 10 days within 2 years. No preferential treatment is applied. All types of training at certified training providers (exceptions given) are eligible. Employees continue to receive their wages during the leave (employers are obliged to continue to pay the wage to their employees during the educational leave) and retain all rights vis-a-vis the employer and the social security system. The training leave can be re-used after a break of a particular period.
Employees who have been employed for at least 6 months with the current employer have a right to paid educational leave for 5 days each year. No preferential treatment is applied. Employees continue to receive their wages during the leave (the employer is obliged to continue to pay the wages for the duration of the study leave) and retain all rights vis-a-vis the employer and the social security system. Participating in a recognized measure of political education or vocational training is required. Training must target political education or further vocational training and must be held for at least five consecutive days. The training leave can be re-used once in each calendar year.
Individuals receive state-funded contributions to their costs for education and training. Nearly all groups of learners can apply for the grant. Personal conditions for entitlement to a grant are German citizenship or residence status listed in § 8, the general suitability for the chosen training and the age limit of 30 years (35 years for master studies). The eligible education and training activities include nearly all kinds of training and education measures (e.g. secondary general education (e.g. primary, intermediate and comprehensive schools, high schools) from class 10, Vocational schools, Technical and specialized secondary schools, Higher technical schools and academies and Universities). Beneficiaries receive a lump sum based on the individual criteria. Training costs for which funding can be received can go up to a maximum amount of EUR 861. The share, as well as the maximum amount, do not differ for different groups. There is no limitation to re-use the grant.
Many Federal States (Länder) in Germany became important providers for cost-sharing schemes in the ESF funding period from 2007 to 2013, where ESF and national funds are used for providing various types of vouchers for further education. Instruments targeted partly only individuals, partly only enterprises, yet, partly both individuals and enterprises. Co-funding schemes are continued under the ESF funding period (2014-2020), however, schemes are adapted on the one hand to introduced federal funding schemes, on the other hand, to reduce available ESF funds for further education (estimated to be EUR 300 000 000 to EUR 400 000 000 per year across all Federal States). Examples for countries with voucher schemes for or also open for individuals include Schleswig-Holstein, Hessen, North Rhine-Westphalia, Hamburg, Saxony, Thuringia and Bremen. Beyond voucher schemes, the Federal States may provide co-funding for further education and training as part of other initiatives, for example, in the field of innovation policies. An overview of all cost-sharing schemes is available in a database (http://www.foerderdatenbank.de). There is no recent overview on funding volumes and beneficiaries.
Public and private educational institutions established in Baden-Württemberg, that offer inter-company training courses for at least three years, can apply for co-funding for the provision of inter-company specialised training to update the professional knowledge, skills and competences of employees in the area of electric mobility. The scheme targets in particular employees of SMEs, but also entrepreneurs and returners to work. The co-funding share is 50% in general. The co-funding rate for participants without vocational qualifications is 70%. The maximum amount of grant per training provider and year is EUR 300 000. The minimum amount is EUR 10 000. Ministry for Finance and Work of Baden Württemberg manages the grant. The grant can be re-used once in each calendar year.
At least 13 German county governments fund personal training measures, mostly via voucher systems or other kinds of grants. All parameters - amount of funding, eligible groups, eligible training measures, etc. - differ a lot between the different counties.
Individuals currently enrolled at a state or state-recognised tertiary institution in Germany, who are not older than 44 years can apply for the loan. No preferential treatment is applied. The loan is provided by the KfW bank in Germany. The interest rate is generally variable. It is based on a certain reference interest (6-month EURIBOR) plus a contractually agreed premium. The interest rates are adjusted every six months.
Individuals planning to found a start-up, who are located in Mecklenburg-Vorpommern, can apply for State-funded contributions to their costs for specific business-related courses. The eligible education and training activities include individual professionally related training. The scheme is governed by the Federal Ministry of Education and Research. The selected training measure for the participant must be relevant for his/her professional life. The co-funding share is 80% and max EUR 392 of the costs for training and education. No preferential treatment is applied. There is no opportunity to re-use the scheme.
Employers with less than 250 employees in North Rhine- Westphalia can apply for the state funded grant (voucher system). Only job-related education and training activities are eligible. The grant is co-financed by the ESF. The co-funding share is 50% of the costs for education and training (max 500 EUR). There is no preferential treatment. Re-use is possible each calendar year. An employer can receive up to ten voucher per year (yet not more than one per employee). A corresponding voucher is avaialbe for individuals.
Employees with an annual taxable income between EUR 20 000 and EUR 40 000 as well as individuals re-entering the job market and self-employed, residents in North Rhine Westphalia can apply for the State-funded grant (voucher system). Employees in the public service are excluded from the scheme. The eligible education and training activities focus on defined professional qualifications and technical skills or key skills. The co-funding share is 50% of the costs for education and training (max EUR 500). The same applicant can use the scheme once in each calendar year.
Employers and employees can agree on a payback clause, with the civil law setting the framework for the agreement. In compensation for employer-provided/financed training, employees commit themselves to stay in the company for an agreed period or (partially) pay back the costs of training. The retention period has to be in proportion to the benefits of training (duration and the level of qualification). The amount to be repaid is reduced on a monthly base. Payback clauses are possible for any type of education. No preferential treatment is applied.
This incentive provides co-funding for further education of employees, as part of the Qualifizierungsoffensive of the Federal State. All employees are eligible for funding. The qualification must take at least 160 hours, and only certified, external courses are eligible. The share of co-funding and wage subsidy depends on the size of the company. The share of co-funding of training costs is from 15 (for comp. > 2 500 employees) to 100% (<10 employees). The same applicant can use this scheme once in each calendar year.
Employees having completed vocational qualifications can apply for this State-funded grant to finance their costs for education and training. The eligible education and training activities include all kinds of university studies. A lump-sum allowance is granted (EUR 861 per month plus a book allowance of EUR 80). No preferential treatment is applied. The scheme cannot be re-used by the same applicant.
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 14 % and 45 %). Co-funded training is expected to sustain or increase future income, implying higher tax revenues later on. Eligible costs include tuition fees, costs for teaching material and professional literature, related travel and accommodation costs as well as the costs of a computer. For the deduction, a ceiling is introduced (EUR 6 000 in 2019). Individuals with no taxable income (an annual gross salary below EUR 9 744) cannot profit from the tax deduction. The tax incentive can be used once in each calendar year.
Companies in the scaffolding sector are obliged by collective agreement to contribute a specific percentage of the payroll (2.5% as part of a 25% contribution of the wages for various social security-related issues) to a training fund that covers, among others, (e.g., social security payments) costs for initial and continuing vocational education and training. In return, companies may receive contributions to their initial training costs and their further education costs. The fund covers 100% of the course fees; there is a fixed amount per day for the personnel absence costs (up to 100% of the daily wage costs for certain courses). Reimbursement of fees costs goes directly to training providers (most cases). No preferential treatment is applied.