Adult education allowance

Name of the instrument - Local language: Aikuiskoulutustuki
Name of the instrument - English translation: Adult education allowance
Scheme ID: 81
Country: Finland
Reporting year: 2020
Type of instrument: Grant for individuals
Sub-type of instrument: Cost-related support
Type of entry: Single instrument

Short description: Persons permanently living in Finland, having a full-time employment relationship with the same employer for at least one year, or whose pension-insured entrepreneurship has lasted for at least one year may receive state-funded contributions to their costs for education and training. The maximum allowance period is 19 months if the applicant has a working history of at least 8 years. The amount of the allowance consists of a base amount and a wage-based amount. The monthly base contribution is approx. EUR 705 and the wage-based contribution amounts to 45% of the difference between the monthly wage and the base contribution. The eligible education and training activities include studies leading to a degree, but also vocational further or continued training organised by a Finnish educational institution under public supervision. The education and training take place during an unpaid study leave of at least two months.
Short description of the related instruments: Not applicable

Level of operation

National

Name of a part of the country

Not applicable

Name of the region (for regional instruments)

Not applicable

Name of the sector (for sectoral instruments)

Not applicable

Relevance

Key instrument

Legal basis

Laki aikuiskoulutustuesta (Act on Adult Education Aid)

Objective(s) and target(s)

To support employees' vocational studies by granting them financial assistance during unpaid training leave.

Year of implementation

2000

Year of latest amendment

2017

Operation/management

Adult education allowance is provided by the Education Fund, which is administered by the social partners of the Finnish labour market. The Education Fund is financed by the Unemployment Insurance Fund and the State, and its operations are monitored by the Financial Supervisory Authority. If a person qualifies for adult education subsidy for an uninterrupted period of at least 8 weeks, he/she may be eligible for a government guarantee for a student loan. The terms of the loan guarantee are the same as in the student financial aid system. The level of income does not affect eligibility for a loan guarantee. The guarantee is granted by the Social Insurance Institution (KELA).

Eligible group(s)

Persons permanently living in Finland, having a full-time employment relationship with the same employer for at least one year or whose pension-insured entrepreneurship has lasted for at least one year may receive state funded contributions to their costs for education and training.

Group(s) with preferential treatment

No preferential treatment

Education and training eligible

Studies leading to a degree or vocational further/continuing training organised by a Finnish educational institution under public supervision.

Source of financing and collection mechanism

Education Fund, funded by the Unemployment Insurance Fund and the State.

Financing formula and allocation mechanisms

The maximum allowance period is 19 months if the applicant has a working history of at least 8 years. The amount of the allowance consists of a base amount and a wage-based amount. The monthly base contribution is 705.20 and the wage-based contribution amounts to 45% of the difference between the monthly wage and the base contribution. If the monthly wage exceeds 3 444, the wage-based contribution only amounts to 20% of the difference between the monthly wage and the base contribution. Examples of the amount of allowance during unpaid study leave in 2015 (salary/month - allowance/month): 2 000 - 1 249; 3 000 - 1 680; 4 000 - 2 015. The allowance is transferred directly to the learner every month (advance payment). If the learner is paid for part of the study leave period or if the studies are only part-time, the learner has to apply for the allowance retroactively for each calendar month. The allowance will then be affected by the income earned during the specific month. The amount of loan guarantee is 400 per month for studies in Finland and 700 per month for studies outside Finland.

Eligible costs