Company Costs and Benefits in Austria

Almost three quarters of the total costs are borne by training enterprises. Most of the costs are due to the apprenticeship remuneration paid by the training company. IVET trainers within the company and the training equipment are also part of the companies’ costs. The training company pays the apprenticeship remuneration, which comprises most of the cost. In addition, there are the expenditures for the qualified IVET trainers within the company and the training equipment. The training companies also often fund additional training programmes such as language or specialist courses, courses on social skills, etc.

The costs of apprenticeship training reduce the company’s taxable profits – a form of indirect public co-financing. Moreover, there are also benefits regarding non-wage labour costs.

• Health insurance contribution: The health insurance contribution accrues from the first until the last year of apprenticeship. The contribution rate is 3.35% throughout the entire apprenticeship. The apprentice has to contribute 1.67% and the employer 1.68%.
• Accident insurance contribution: For apprentices, no accident insurance contribution needs to be paid. Nevertheless, the apprentice is accident insured.
• Pension insurance contribution: The contribution rate for the pension insurance for apprentices doesn’t differ from the general rate and is 22.80% during the entire apprenticeship period, with the apprentice bearing 10.25% and the employer 12.55%. The pension insurance contribution of an apprentice starts on the first day of the apprenticeship.
• Unemployment insurance contribution: The unemployment insurance contribution accrues from the first to the last year of apprenticeship. The contribution rate is 2.40% during the entire apprenticeship period (1.20% for each employee and employer).

The training companies are supported by a large number of direct and indirect subsidisation options that ultimately reduce the company’s costs.