Incentives in Denmark

The guiding principle in terms of incentives is that employers are required to take on apprentices in order to sustain the dual system and thus secure qualified labour for the future. In addition, all employers pay into a common reimbursement fund, thus participating in financing apprenticeships, even if they do not take on apprentices themselves.

There are some economic incentives for companies to take on apprentices, in addition to participating in the education of qualified labour for the future:  

The Employers’ Reimbursements Fund: All private and public employers pay into the Employers’ Reimbursement Fund (AUB), whether they have apprentices or not. The annual amount is around DKR 3,000 (EUR 400) per employee. In periods when the apprentice is attending college, the employer can have a large part of the costs for the apprentice’s salary reimbursed. In that way, all companies in Denmark contribute to the apprenticeship system.

As part of tri-partite negotiation in 2016 it was decided to add two temporary bonus schemes to support companies hiring more apprentices; one benefits bonus and one internship bonus. Companies that provide VET-students with a training agreement are therefore entitled to an extra bonus.  

For the training providers, the fact that they receive extra funding through the taximeter system if the Centres of Placement manage to increase the number of apprenticeship agreements with companies (the fifth taximeter) provides them with an economic incentive.