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Co-funding of training in companies

Benefit from financial support from the State for employee training

Private sector companies that are legally based in the Grand Duchy and carry out most of their activities there can obtain training support worth 15% (taxable) of the annual training investment.

The training courses organised must be aimed at employees who are affiliated to the Grand Duchy's social security system and have an employment contract (fixed-term or of indefinite duration).

The financial support is accessed by submitting a co-funding application.

What will change in 2018

Further to publication in the Official Gazette (Mémorial A - No.798 of 8 September 2017) of the Act of 29 August 2017 amending the Employment Code on 'support for and development of lifelong training' (Book V – Chapter 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 financial 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 implemented:
      • no qualifications recognised by the public authorities and less than 10 years' service,
      • 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.
  • The eligibility period for the training plan is no longer based on the financial year, but solely on the calendar year running from 1 January to 31 December.

  • The request for approval has been abolished. The 'annual review' and the 'final report' are replaced by a single form comprising the 'application for co-funding'.
  • 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).
  • All invoicing and re-invoicing must be accompanied by a copy of the corresponding bank transfer notification (the accounts department's rubber stamp and signature on the invoice are no longer considered proof of payment).
  • 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.

Training investment

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

  • Participants' salaries
  • Internal trainers' salaries 
  • Expenses for external training bodies or supplier-trainers
  • Travel, accommodation and subsistence expenses
  • Cost of auditor in connection with examination of financial breakdown 
  • Cost of training management software
  • Cost of subscriptions to training bodies, based on a collective labour agreement or an inter-professional agreement.
500 euros will be refunded to cover the cost of drawing up the application for co-funding.


Estimate how much support you could
receive by using our co-funding calculation simulator.

Amount of co-funding

The amount of the co-funding is determined by the investment in continuing vocational training agreed following acceptance of the application for co-funding by the Ministry of Education, Children and Youth (Ministère de l’Education Nationale, de l'Enfance et de la Jeunesse - MENJE).

  • 15% of the amount invested in training in the course of the financial year.
    Increased by 20% for the wages cost of participants meeting one of the following criteria on the date the company's training plan is implemented:
      • no qualifications recognised by the public authorities and less than 10 years' service,
      • 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.

Structure of the co-funding applications

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)

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 (internal training),
  • e-learning.
Co-funding applications must provide the following information:
  • the titles of the training courses delivered,
  • the dates, durations and venues of the training courses + the numbers of people trained, their gender and their qualification,
  • the names of in-house trainers and external training bodies or supplier-trainers,
  • the format of the training course,
  • the financial breakdown, with supporting documents (all invoices and re-invoices must be accompanied by a copy of notification of the corresponding bank transfer) or certified correct by an auditor,
  • the opinion and assessment note issued by the personnel representative committee or joint committee if the company has more than 15 employees.

Deadline for submitting an application for co-funding

Applications for co-funding must reach the INFPC within five months of the end of the financial year, i.e. no later than 31 May. 

The eligibility period for the training plan is based solely on the calendar year running from 1 January to 31 December.

No extension of the submission deadline will be granted.

Sending applications for co-funding

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 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.

WHAT YOU NEED TO KNOW
  • The personal submission of co-funding applications is no longer accepted.

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

 

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