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Co-funding of training

Benefit from financial support from the State
Further to publication in the Official Gazette (Mémorial A - No.798 du 8 September 2017) of the Loi du 29 août 2017 portant modification du Code du Travail on "Soutien et développement de la formation continue" (Livre V – Chapitre II – Section 2), here is some information on the points which have been amended.

The new legislative provisions set out below are to be taken into consideration in the context of the examination of applications for co-funding relating to the 2018 operating year.

WHAT WILL CHANGE

  • The State's financial participation drops from 20 to 15% of the amount invested in training in the course of the financial year.
    It is increased by 20% for the wages cost of participants meeting one of the following criteria on the date the company's training plan is being implemented:
      • no diploma recognised by the public authorities and less than 10 years' seniority,
      • over 45 years of age.
  • Investment in training is capped according to the size of the company:
      • at 20% of total payroll for companies with 1 to 9 employees;
      • at 3% of total payroll for companies with 10 to 249 employees;
      • at 2% of total payroll for companies with more than 249 employees.
  • There is no longer a request for approval. The "annual review" and the "final report" are replaced by the "application for co-funding", in the shape of a single form.
  • The tax credit is abolished.
  • Calculation of the average hourly wage refers exclusively to the information supplied by the certificate providing information on the total payroll (the 'certificate of income' is no longer taken into consideration).
  • The duration of on-the-job training is reduced from 173 to 80 hours per participant per financial year.
  • Only training courses for employees with no qualifications and for employees whose formal qualifications bear no relation to their work are eligible.
  • 500 euros will be refunded to cover the cost of drawing up the application for co-funding.
  • Subscriptions paid to training bodies are eligible on the basis of a collective labour agreement or an inter-professional agreement.
  • Self-training now refers exclusively to e-learning.

WHAT IS NO LONGER ELIGIBLE

  • Training courses that are compulsory by law before working in a regulated profession. Training courses declared as compulsory by the company are always eligible.
  • Expenditure in connection with hiring or amortising the cost of training rooms and teaching materials.
  • Teaching preparation expenses.
  • The cost of a consultant (only the cost of the auditor responsible for examining the financial breakdown of the application for co-funding remains eligible).
  • Overheads and monitoring costs.


The following information refers exclusively to requests for co-funding in 2017.

01 Purpose

The following information refers to requests for co-funding in 2017.

Private sector companies that are legally based in the Grand Duchy and carry out most of their activities there can obtain training support worth 20% (taxable) of the annual training investment.

The training courses organised must be intended for employees who are:

  • affiliated with Luxembourg social security through an employment contract (fixed-term or permanent),
  • or any person working as a sub-contractor for the company.

Access to financial support requires a co-funding application. The type of co-funding application to be completed depends on the investment in training.

  • Annual training investment of less than or equal to €75,000 = Annual review
    Retrospective description of the training activities organised at the end of the operating year.

  • Annual training investment of more than €75,000 = Approval application and Final report
    Budgeting of the training plan at the beginning of the operating year (approval application).
    Retrospective description of the training activities organised at the end of the operating year (final report).
Estimate how much support you may receive using our Co-funding calculator.

The draft law on co-funding of training was adopted by the Government Council.
More information on the adjustment of the methods for access to financial support in respect of companies' training plans.

IMPORTANT INFORMATION

  • The personal submission of co-funding applications is no longer accepted.

  • Your applications for co-funding must be sent by registered mail with acknowledgement of receipt to the following address:

    INFPC
    12-14, avenue Emile Reuter
    L-2420 Luxembourg

  • No extension of the submission deadline will be granted for applications for approval, annual reviews and final reports.

03 Investment in training

The following information refers to requests for co-funding in 2017.

The annual investment for continuing vocational training comprises various types of eligible expenses.

  1. Salaries of participants and in-house trainers 
  2. External trainer expenses 
  3. Travel, accommodation and subsistence 
  4. Teaching preparation 
  5. Premises and teaching materials 
  6. Subscriptions to training bodies 
  7. Auditor/consultant fees 
  8. 'Training management' software
  9. Overheads and monitoring costs

The training formats are varied:

  • training with a training body (external training),
  • training delivered to a minimum of two participants by an employee of the company (structured in-house training),
  • on-the-job training (in-house training),
  • self-training, e-learning,
  • attending a conference, fair or show.

In order to structure the co-funding application, training courses are divided into seven training categories or themes.

  1. Languages
  2. IT/Office automation
  3. Management/Human resources management
  4. Finance/Accounting/Law
  5. Quality/ISO/Safety
  6. Technical/Core business related
  7. On-the-job training (new hires/transfers/adaptation)

04 Annual review

The following information refers to requests for co-funding in 2017.

Valid for an annual training investment of less than or equal to €75,000, the annual review includes the retrospective description of the training carried out throughout the year, as well as the financial breakdown together with supporting documents (attendance lists, paid invoices, expenses forms etc.: see Eligible Expenses).

Submission deadline

The INFPC must receive the annual review no later than five months after the end of the operating year.

No extension of the submission deadline will be granted.


submission deadline for annual review

(Timescale assuming that the operating year coincides with the calendar year)


05 Approval application and final report

The following information refers to requests for co-funding in 2017.

Valid for an annual training investment of more than €75,000,

  • The approval application comprises the qualitative (planned training courses) and quantitative forecast (estimation of the number of participants, provisional budget) for the company's training plan.
  • The final report includes the retrospective description of the training courses carried out together with supporting documents (attendance lists, paid invoices, expenses forms etc.: see Eligible Expenses).

Submission deadline

The INFPC must receive the approval application no later than three months after the start of the operating year. After this deadline, the period of eligibility of the training plan starts on the date on which the INFPC receives the approval application.

The INFPC must receive the final report no later than five months after the end of the operating year.

No extension of the submission deadline will be granted.

submission deadline for applying for approval and sending final report

(Timescale assuming that the operating year coincides with the calendar year)


06 Amount of the co-funding

The following information refers to requests for co-funding in 2017.

The amount of the co-funding is determined by the investment in Continuing Vocational Training (Formation Professionnelle Continue - FPC) agreed following acceptance of the annual review or final report by the Ministry of Education, Children and Youth (Ministère de l’Education Nationale, de l'Enfance et de la Jeunesse - MENJE). The company can choose between two co-funding methods:

Direct grantTax credit
  • 20% (pre-tax) on the agreed investment amount, i.e. 14% after tax

  • Increase of 15% for participants' salary expenses if the following criteria are met:
    • no diploma recognised by the public authorities and less than 10 years' seniority,
    • over 45 years of age.

  • 14% of the investment amount, deducted from income tax on the current year's income

  • Increase of 11% for participants' salary expenses if the following criteria are met:
    • no diploma recognised by the public authorities and less than 10 years' seniority,
    • over 45 years of age.

07 Practical information

The following information refers to requests for co-funding in 2017.

Here are some tips for preparing the co-funding application:

  • Consult the explanatory notice which contains full information on the financing of the training plan
  • Only use the official forms corresponding to the year of the application
  • The training plan may relate to several companies of the same group or business sector (group application). The company responsible for preparing the co-funding application should provide a list of the entities involved.
  • Organise supporting documents by project and by category
  • Comply with the submission deadlines for the annual review, approval application and final report

INFPC assistance

For all questions relating to the preparation of co-funding applications, contact the Co-funding Department of the INFPC.

In order to simplify the process for companies, the INFPC offers a training course (in French) entitled 'Cofinancement de la formation en entreprise'.

Send the co-funding application

A single copy of the co-funding application must be sent to the INFPC, by registered mail with acknowledgement of receipt, within the legal deadlines.

Co-funding applications on paper (annual review, approval application and final report) must be accompanied by an electronic version (Excel file only) saved on a CD or USB key. An e-mail with the file attached will not be accepted.

INFPC
12-14, avenue Emile Reuter
L-2420 Luxembourg

The personal submission of co-funding applications is no longer accepted.


 

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