Training grant for employers
- Name of the instrument - Local language
- Koolitustoetus tööandjatele
- Name of the instrument - English translation
- Training grant for employers
- Scheme ID
- 280
- Country
- Estonia
- Reporting year
- 2020
- Type of instrument
- Grant for companies
- Sub-type of instrument
- Support for direct costs and wage costs
- Type of entry
- Single instrument
- Short description
All companies can apply for a financial grant providing co-funding to the training of employees. The training grant for employers can be used for the following activities: 1) to recruit and train employees for the specified/prioritised professions; 2) to (re)train employees due to changing circumstances (e.g. restructuring of the company, adoption of new technologies, updated qualification requirements); and/or 3) to help employees develop Estonian language skills. An employer can design a training plan for each employee consisting of multiple training with a total duration of at least 80 academic hours and up to one year. In general, up to 50% of training costs are compensated but no more than EUR 1 250 per employee. For employees over 50 years old, with no vocational education and/or no sufficient Estonian language skills or significant health problems, up to 80% of costs is compensated (no more than EUR 2 000). If an employee was hired through the Unemployment Insurance Fund where s/he was previously registered as unemployed, up to 100% of training costs are compensated (no more than EUR 2 500). It is financed out of the unemployment insurance contributions (which are compulsory and shared between employees and employers in Estonia). This support measure is part of the larger Work and Study 2017-2020 programme, which supports training activities in priority sectors that were identified in sector-specific labour studies (OSKA reports) conducted by the Estonian Qualification Authority (Kutsekoda).
- 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
- Tööhõiveprogramm 2017-2020 (directive) under Labour Market Services and Benefits Act §4 (1) (2006)
- Objective(s) and target(s)
- The instrument is part of the larger 'Work and Study' Programme 2017-2020. According to the respective act (Tööhõiveprogramm 2017-2020, 2016), the overall objectives of the programme are the following: 'to alleviate labor shortages, prevent unemployment and shorten the duration of unemployment, and assist persons whose employment is difficult due to long-term unemployment or other obstacles.' (§2)
- Year of implementation
- 2017
- Year of latest amendment
- 2018
- Operation/management
- This instrument is managed by the Unemployment Insurance Fund and is funded from the Unemployment Insurance contributions. Annual budget allocations are stipulated in the founding legal act (Tööhõiveprogramm 2017-2020, 2016) and changes are made in consultation with the Ministry of Social Affairs and the Ministry of Finance. Social partners (trade unions, employer associations/federations) are not involved.
- Eligible group(s)
- Employers can apply for a training grant from the Unemployment Insurance Fund to - recruit new employees - train employees upon changing circumstances - train a worker who has been previously registered as unemployed for 12 consecutive months within one year of the start of employment - develop employees' Estonian language proficiency. The training grant can be granted to legal persons governed by private law, sole proprietors who operate as employers and local government authorities.
- Group(s) with preferential treatment
- No preferential treatment
- Education and training eligible
- Work-related training and education, including for the purpose of recruiting new employees, retrain existing employees, upgrade the qualifications of existing employees, including local language (Estonian) skills.
- Source of financing and collection mechanism
- Contributions to the Unemployment Insurance Fund (employees and employers contribute), National budget allocation (minor contribution)
- Financing formula and allocation mechanisms
- In general, up to 50% of training costs are compensated but no more than EUR 1 250 per employee. For employees over 50 years old, with no vocational education and/or no sufficient Estonian language skills or significant health problems, up to 80% of costs are compensated (no more than EUR 2 000). If an employee was hired through the Unemployment Insurance Fund where s/he was previously registered as unemployed, up to 100% of training costs are compensated (no more than EUR 2 500). The amount of funding is transferred (reimbursed) directly to educational institutions. The requirements to receive compensation are the following: regular attendance of participants in the courses and a certificate obtained at the end of the training. The employer must also provide a statement of expenses. There are no restrictions on re-using the scheme. The de minimis regulation applies.
- Eligible costs
- - training costs - transport costs related to participation in the training and - wage costs in the rate of minimum hourly wage for the time the employee participates in the training
- Volumes of funding
- Overall volumes of funding available:2017: EUR 1 166 4082018: EUR 438 1632019: EUR 1 505 5942020: EUR 1 547 292Volumes of funding actually disbursed:2017: EUR 23 0232018: EUR 198 8612019: EUR 1 546 247
- Beneficiaries/take up
- Individuals trained:2017: 51 2018: 680 2019: 1 872
- Organisation responsible for monitoring/evaluation
- Estonian Unemployment Insurance Fund
- Monitoring/evaluation reports available
- Not available
- Most relevant webpage - in English
- https://www.tootukassa.ee/eng/content/prevention-unemployment/training-…
- Most relevant webpage - local language
- https://www.tootukassa.ee/koolitustoetus-tooandjatele
- Recent changes
01-06-2018. Employers can apply for the grant in order to increase Estonian language proficiency of their employees. Low integration of persons who do not speak Estonian (non-Estonians make 30% of population)
Recent changes in response to COVID-19
No changes
- Sources
- Unemployment Insurance Fundhttps://www.tootukassa.ee/en/
- State Gazzette of Estonia https://www.riigiteataja.ee/akt/104052018013
- Short description
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Relevance
- Legal basis
- Objective(s) and target(s)
- Year of implementation
- Year of latest amendment
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Monitoring/evaluation reports available
- Most relevant webpage - in English
- Most relevant webpage - local language
- Recent changes
- Sources