Incentives in Germany

In general, there is no direct financial support to companies providing training. The government runs support programmes offering grants to companies that fulfil certain requirements or to companies that offer training to vulnerable target groups.

Grants for the training of vulnerable target groups

Under certain circumstances, companies can receive a grant from the employment agency to finance a part of the training allowance of disabled apprentices or for creating additional training places for disadvantaged young people. There are also programmes of the Federal States which offer grants to companies that train disadvantaged young people, single parents, apprentices that lost their training place due to company closure, or to women in typically “male” occupations.

The number of 20- to 34-year-olds without a vocational qualification has been almost constant for years and is around 15 percent which leads to the following programms of the Federal Employment Agency under the Code of Social Law (Sozialgesetzbücher):

An introductory qualification (Einstiegsqualifizierung) is carried out as a long-term internship in a company. Training applicants registered with the Employment Agency who have not found a training position by September 30, as well as young people who are disadvantaged or not yet suitable for taking up in-company training, can be supported by an introductory training program. If applicable, credit may be given for subsequent vocational training (Section 8 of the Vocational Training Act). Employers who carry out an in-company introductory qualification can receive subsidies for the remuneration of the internship. In addition, a flat-rate share of the average total social security contribution is paid for the participant.

The aim of “Assisted Vocational Training” (Assistierte Ausbildung) is to help more young people with support needs to successfully complete in-company vocational training in the dual system. Participants and training companies can be supported within the framework of Assisted Vocational Training before (preliminary phase) and during (accompanying phase) in-company vocational training. Assisted Vocational Training serves to reduce language and educational deficits, to promote specialized practice and theory, and includes socio-pedagogical support. The company has a permanent training supervisor at its disposal.

Other programmes

In training occupations with very few apprentices (“splinter occupations”), schooling can be centralized. In those cases, companies can apply for grants to support the subsistence costs of the apprentices during schooling. There are also grants available for companies that have to send their apprentices to inter-company training centres or that are training in an alliance with other companies.

Sources of funding

The different grant programmes are funded by the Federal Government, the Federal States, the European Social Fund (ESF), Federal Employment Agency or occupational/sector associations.