The training grant is provided for employers to improve the skills and knowledge of their employees.
Employers can apply for a training grant from the Unemployment Insurance Fund to
- recruit new employees;
- train employees in changing circumstances;
- develop employees’ Estonian language proficiency;
- develop employees’ proficiency in information and communication technology (ICT)
The training grant can be applied for by legal persons governed by private law, sole proprietors who operate as employers, and local government authorities. The employment contract of the employee participating in the training must be concluded for an indefinite period or for at least 6 months.
The total volume of the employee’s training plan must be at least 50 academic hours in total for the duration of up to one year. The application for each training must be submitted via the self-service portal of the Unemployment Insurance Fund prior to the start of training. The application for each training must be submitted separately. The person submitting the application must be a member of the management board or an authorized person. If the application is submitted by an authorized person, a power of attorney (does not have to be notarized) must be attached to the application.
In order to train employees, employers can choose a training programme that complies with the Adult Education Act or compile a suitable training programme if no such programme is provided on the market. The training programme must comply with the Continuing Education Standard and the participants must receive a certificate or attestation at the end of the programme.
What to consider before submitting an application for the training programme?
The following information must be provided:
- contact information of the training institution (business name, registry code, first and last name of the contact person, telephone, and e-mail address)
- title of the training programme, volume in academic hours, start and end dates, location
- total cost of the training programme with VAT and the cost per participant (in case of customised training programmes, a price offer)
- first and last name(s) of the participant(s), personal identification code, position, duration of the employment contract (without a term or, in case of a fixed-term contract, the contractual period)
- in case of applying for compensation of travel costs to a training programme abroad, information on the organisation of transportation and the estimated travel costs per employee
The training grant compensates the employer’s
- training costs,
- transport costs related to participation in the training, if it takes place outside Estonia, and
- wage costs in the rate of the minimum hourly wage at the moment of the training grant decision for the time the employee participates in the training.
We will generally compensate up to 80% of the total costs, but no more than EUR 2500 per employee. The training grant is de minimis aid (DMA). If the maximum DMA amount has been reached, the training grant will be paid as a state aid block exemption and in the amount of up to 50%, but no more than EUR 2500 per each employee listed in the employer’s application.
More information on de minimis aid can be found on the Ministry of Finance website.
A total of up to EUR 2500 in training support is paid to an employer for the training of the same employee over a period of three years across all of the support options (recruitment of employees, changes in the company, development of Estonian language skills and ICT skills). If the employer has received training grants before, the amount per employee may be lower.
In case of a positive decision, the training grant is paid out based on expense reports (which can be submitted in the self-service portal of the Employment Insurance Fund). At first, all expenses pertaining to the training of employees are paid by the employer.
Please note that the training grant is not paid if the employer and the trainer are associated as follows:
1) a member of the employer’s (legal person) directing or controlling body, or a person who owns at least 50% of the employer (legal person), is a member of the directing or controlling body of the training legal person, or he/she owns at least 50% of the training legal person, or he/she is a training provider as a self-employed person or based on a contract under the law of obligations concluded with the employer;
2) a member of the employer’s (legal person) directing or controlling body, or a person who owns at least 50% of the employer (legal person), is a training lecturer, lecturer, supervisor or has another similar role;
3) a member of the training legal person’s directing or controlling body, or a person who owns at least 50% of the training legal person’s shares or share capital, or a person who is a training provider as a self-employed person or based on a contract under the law of obligations concluded with the employer, is the spouse, parent or child of a member of the employer’s (legal person) directing or controlling body or a person that owns 50%, or they are connected due to a joint household.
The training grant service is provided under the Government of the Republic Regulation ‘Employment Programme for 2021-2023’.
The requirements of the training grant will be introduced to you by the employers’ consultant, whose contact details can be found here.
You can submit an application for a training grant and send an expense report via the Unemployment Insurance Fund self-service portal or by e-mail (koolitustoetus [ä] tootukassa [dot] ee).
Should you have any questions, please write to koolitustoetus [ä] tootukassa [dot] ee