The company bears the costs of the remuneration of the apprentice and the costs of the in-company training. The level of remuneration of the apprentice will often be laid down in the collective agreements. If not, it will be specified in the contract between the training company and the apprentice.
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 company’s costs are mainly connected to the salary paid to the apprentice. Salaries in college-based periods of VET are reimbursed to the company from a common fund financed by all companies in Denmark. However, the guiding principle in terms of company costs is that the apprentice is supposed to participate in productive work, thus minimizing the costs for the Company.
Companies that engage an apprentice do have to pay a monthly allowance fixed by decree. However, a system for the promotion of apprenticeship allows companies to ask for a partial refund of their apprenticeship costs.
In Switzerland there is a positive correlation that leads to a net benefit for the company conducting an apprenticeship. Extensive research has been conducted on the cost-benefit ratio of apprenticeships.