Co-funding of training in companies
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's new in 2018
Further to publication in the Official Gazette (Mémorial A - No. 798 of 8 September 2017) of the Law of 29 August 2017 amending the Labour Code on 'support for and development of lifelong training' (Book V – Title IV – Chapter II), 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'S NEW
- 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.
These employees who benefit from special co-funding must be identified on each supporting document.
- 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 The 'annual review' and the 'final report' have been replaced by a single form comprising the 'application for co-funding'.
- The tax credit is abolished.
- The co-funding application must include certificates providing information on total payroll and number of employees on the payroll, together with bank details.
- 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).
- For travel by car for participants and trainers, the mileage allowance is determined in the same way as the amount refunded by the State in accordance with the Regulation of the Government in Council of 19 June 2015 determining the mileage allowance for cars used for business travel.
- All the eligible costs listed on the financial statement must be accompanied by the corresponding invoices and expense notes.
All invoicing and reinvoicing must be accompanied by a proof of payment (copy of transfer note (the accounting department's rubber stamp and signature on an invoice are no longer considered proof of payment)). A debit note is issued for payments made via online banking.
- For all e-learning training, a 'logfile' list signed by the participant and countersigned by the training manager or the head of the company, indicating the title of the training course, periods of access to the program and the names of participants should be attached as a supporting document. If it is not possible to submit such a list for reasons linked to IT, the information should be supplied on a similar medium.
- 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.
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WHAT IS NO LONGER ELIGIBLE
- Training courses that are compulsory by law before working in a regulated profession. Training courses declared 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.
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Training investment
The annual investment for continuing vocational training comprises various types of eligible expenses.
- Participants' salaries
- Internal trainers' salaries
- Expenses for external approved 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.
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’Éducation 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.
- Languages
- IT/Office automation
- Management/Human resources management
- Finance/Accounting/Law
- Quality/ISO/Safety
- Technical/Core business related
- 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 approved 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.
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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
Immeuble CUBUS C2
2, rue Peternelchen
L-2370 Howald
- No extension of the submission deadline will be granted.
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For all questions relating to the preparation of co-funding applications, contact the Co-funding Department of the INFPC.