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.
Training investment
The annual investment for continuing vocational training comprises various types of eligible expenses.
- Participants' salaries
Calculation of the average hourly wage refers exclusively to the information supplied by the certificate providing information on the total payroll (the income certificate is no longer taken into consideration).
- In-house trainers' salaries
- Expenses for approved external training bodies and supplier-trainers
- Travel, accommodation and subsistence expenses
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.
- Cost of the auditor responsible for examining the financial statement
The consultancy expenses are not eligible.
- Cost of training management software
- Cost of subscriptions to training bodies, based on a collective labour agreement or an inter-professional agreement.
- Training courses that are compulsory by law for working in a regulated profession are not eligible. Training courses declared compulsory by the company are eligible.
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’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.
- 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 (in-house training),
The duration of on-the-job training is reduced 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.
- e-learning.
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.
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 identification of the in-house trainers and approved external training bodies or supplier-trainers,
- the format of the training course,
- the financial statement, with supporting documents (all invoices and reinvoices must be accompanied by a copy of the transfer note, the accounting department's rubber stamp and signature on an invoice are no longer considered proof of payment) or certified as true 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
The period of eligibility of the training plan is based solely on the calendar year, i.e. from 1 January to 31 December.
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.
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.
The co-funding application must include certificates providing information on total payroll and number of employees on the payroll, together with bank details.
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.
For all questions relating to the preparation of co-funding applications, contact the Co-funding Department of the INFPC.
2018 legislative changes
Following the publication in the Official Journal (Mémorial A - N°798 of 8 September 2017) of the Law of 29 August 2017 amending the Labour Code regarding the section "Support and development of continuing training" (Book V - Title IV - Chapter II), here are the points that have been amended.
The following legislative provisions have been taken into account in the assessment of co-funding applications since 2018.
WHAT HAS CHANGED
- 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 statement of the application for co-funding remains eligible).
- Overheads and monitoring costs.
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