Ministries, government agencies and public bodies will no longer be covered by the training compensation system after the start of 2021. The legislation on this was approved on 17 December 2020 and will enter into force on 1 January 2021. Ministries, government agencies and public bodies can still apply for training compensation in respect of training held in 2020, however, and such applications will be taken between 1 January and 31 March 2021.
Training compensation is a form of financial support for employers who are not entitled to deduct training costs in their taxation. Central government agencies and institutions apply to the Ministry of Finance for the training compensation. The compensation covers some of the employees’ payroll costs while they participate in eligible training. The objective of the training compensation is to improve employers’ opportunities to organise training that develops their employees’ professional skills.
The precondition for eligibility is that the training is based on a personnel and training plan prepared by the employer in advance and that it promotes the employee’s professional skills. An employer is entitled to the training compensation for at most three training days per employee. The amount of the compensation is 10 per cent of the payroll costs used for the calculation of the refund.
Applications for training compensation are received between 1 January and 31 March annually. During this period, employers should apply for compensation for training organised in the previous year.
(The link to the application form is open between 1 January and 31 March.)