Latvia

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 20 and 31%). Co-funded training is expected to sustain or increase future income, implying higher tax revenues later on. The costs of education and training provided by institutions not accredited by the State and the costs of learning abroad are not deductible from the tax. For the deduction, a ceiling is introduced (EUR 600). Individuals with no taxable income cannot profit from the tax deduction. The same applicant can re-use the scheme after a break of a particular period (1 year).

Employers and employees may conclude a payback clause in relation to employer-provided/financed training which is necessary to the performance of the employee's duties. Training costs can only be subjected to a payback clause if they exceed the minimum wage. The duration of the payback contract must not exceed 2 years from the end of training. The amount to be reimbursed by the employee should not exceed 70% of the total costs of training.

The scheme promotes training opportunities for employees so that they can more easily adopt innovation in their companies. The focus of the programme is on the ICT sector and any other industry sector determined by the Latvian Investment and Development Agency and the Latvian Chamber of Commerce and Industry. General ICT training is available for companies working in the areas of RIS3 of Latvia. A grant is allocated as a lump-sum payment to the sectoral business association. The maximum public funding provided to one project is EUR 250 000. The funding can be transferred as an advance payment and as cost reimbursement after the completion of training. Eligible types of training include occupational courses connected to the present economic activity of the participant. The training can be provided by the enterprise itself or by external training course providers. The is no opportunity to re-use the scheme by the same applicant.

The scheme promotes training opportunities for the employees of companies so that they can more easily adopt innovation in their companies. The technology training programme focuses on companies in the manufacturing, ICT and tourism sector, global business service centres sector. An applicant, meeting pre-determined criteria, can apply for a grant. A grant is allocated as a lump-sum payment to the sectoral business association. The maximum public funding provided to one project is EUR 900 000. The funding can be transferred as an advance payment and as cost reimbursement. Eligible costs include training costs, salary costs of the training provider, travel costs and accommodation costs only for training provider and project management costs. There is no preferential treatment.

Adults can access a loan scheme introduced to support students in initial education to cover tuition fees in higher education and living costs during full-time education. Financial resources for student loans are determined by law through the state budget for the year. There is no maximum amount for the study loan - it can be as high as the study fee requested by the higher education institution. Students are able to apply for two types of loans with the government guarantee and favourable interest rates: 1) a study loan, which is intended to cover tuition fees; 2) a student loan for student subsistence expenses. The loan is disbursed every semester and directly transferred to the loan taker. The loan repayment starts 1 year after graduation. The maximum period over which the loan could be repaid is not set. The loan can be forgiven for a new parent or for persons working in the public sector. The interest rate of the loan cannot exceed 5% per annum. The payment of the periodic interest rate starts after graduation.

An employee who learns in any type of educational institution, while continuing to work, can have a study leave. The right to request study leave is regulated in the labour law, but direct state funding for the instrument is not provided. The State Labour Inspectorate oversees the implementation of the norm. Employers are responsible for the operation of the norm defined in the employee contract.Programmes leading to a formal qualification (formal education) of ISCED 6-8 level are considered eligible types of training. The study leave can be granted to an employee for defending a thesis or taking state exams (up to 20 days of study leave). The national law does not define who should cover which costs. The financing arrangements may be specified in the employment contract or in the collective agreement.