Employers' Reimbursement System

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Name of the instrument - Local language
Arbejdsgivernes Uddannelsesbidrag (AUB)
Name of the instrument - English translation
Employers' Reimbursement System
Scheme ID
60
Country
Denmark
Reporting year
2020
Type of instrument
Training fund
Sub-type of instrument
National level collection and national level distribution
Type of entry
Single instrument
Short description

All companies are obliged by law to contribute a fixed amount per employee to a training fund covering (primarily) the costs for initial vocational education and training and may receive contributions to their training costs in return. Companies contribute DKK 2 791 (approx. EUR 373) for each employee per year. Companies receive a grant for compensating the wages when trainees attend vocational school. The weekly reimbursement for adult trainees (aged 25+) amounts to DKK 5 240 (approx. EUR 701) per school week. For younger trainees, the wage reimbursement varies between DKK 2 800 (EUR 375) and DKK 4 110 (approx. EUR 550). Adults account only for a minority among trainees in initial vocational education. Employers' Reimbursement System (including internship - AUB scheme -, and training allowances - VEU scheme) has a significant effect on the creation of work placements within the vocational education and training, as well as on the access for adults to participate in further education and training.

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
Lov om Arbejdsgivernes Uddannelsesbidrag ("Act on the Employers Education Contribution")
Objective(s) and target(s)
To create work placements (as part of the dual educaiton within the apprenticeship system) within the vocational education and training and ensure a high professional level on the labour market.
Year of implementation
1977
Operation/management
AUB (Employers' Reimbursement System) is a self-governing institution which is administered and monitored by Arbejdernes Tillęgspension (ATP). ATP administers a number of welfare and social security schemes. The Ministry of Education is responsible for the legal aspects related to the AUB schemes.
Eligible group(s)
Under the AUB Fund several sub-schemes have different target groups - here the Wage reimbursement during training period is described. The target groups are all companies that offers futher vocational education to their employees.
Group(s) with preferential treatment
no
Education and training eligible
IVET, CVET, shorter courses providing specific work-related skills.
Source of financing and collection mechanism
Companies with more than one employee are obliged to pay annually DKK 2 791 (approx 373) (220 data) per employee to the fund. Companies do not pay the levy on the 1st and every 50th employee. It is mandatory for all employers (both private and public) to contribute to the fund, regardless of whether or not they choose to provide training for their employees.
Financing formula and allocation mechanisms
Wage reimbursement during the training period. A higher wage reimbursement is given to companies for adult trainees (25+). The weekly reimbursement for adult trainees (25+) amounts to DKK 5 240 (approx. EUR 701) (2020) per school week. For younger trainees the wage reimbursement varies between DKK 2.800 (approx. EUR 375) and DKK 4.110 (approx. EUR 550). Allocation: Employers apply for reimbursement through a digital "self service" platform online. Normally, the money is transferred to the company 10 days after AUB have received information from the educational institution that the trainee have attended the school.
Eligible costs
Wage compensation during education and training
Volumes of funding
The overall volume of the AUB was DKK 6 023 000 000 (approx. EUR 806 129 961) in 2019, within this budget DKK 5 037 000 000 (approx. EUR 674 161 815) has been contributed by the companies. In 2019, DKK 3 090 000 000 (approx. EUR 413 571 572) were used for wage compensation to companies, a total of DKK 4 414 000 000 (approx. EUR 590 778 291) was provided to companies (covering all sub-schemes).
Beneficiaries/take up
Not available
Organisation responsible for monitoring/evaluation
Arbejdernes Tillęgspension (ATP).
Most relevant webpage - in English
https://indberet.virk.dk/arbejdsgivernes-uddannelsesbidrag-english/arbe…
Most relevant webpage - local language
https://indberet.virk.dk/arbejdsgivernes-uddannelsesbidrag/arbejdsgiver…
Recent changes

Recent changes in response to COVID-19

In May 2020, (28-05-2020), the government and social partners agreed on a new tripartite agreement ensuring increased financial support for companies in Denmark due to the situation with Covid-19. Among other initiatives the agreement focused on: a decrease in the companies' contribution to the AUB fund in 2020, an increase in the wage reimbursement for companies in 2020, a special strengthening of the welfare education (social and health).

Sources
ATP (yearly reports for AUB): http://www.atp.dk/resultater-rapporter/aars-og-kvartalsrapporter/aub
Ministry of Education: http://uvm.dk/Administration/Tilskud-til-institutioner/Arbejdsgivernes-…
Public https://indberet.virk.dk/arbejdsgivernes-uddannelsesbidrag/arbejdsgiver…
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