Funding Arrangements

The governance arrangements in apprenticeship are mirrored in the its financing, which is based on a co-financing model between the company and the state and/or the region. The state and/or the region public pays for the costs of part time schools including buildings, salaries of teachers and the equipment at the schools. The company covers the expenses for the in-company training. Thise co-funding models ensure a demand driven development and ownership by stakeholders of the apprenticeship system.

In the Danish VET system, VET funding is shared between the state and the employers. The school-based part of VET is financed by the state, and the companies fund the work-based training, as well as the wages apprentices receive during the entire main VET program. The Employers’ Reimbursement Fund reimburses the company for the apprentice’s wages when the apprentice undertakes the school-based part of a program.

In the German apprenticeship system, initial and continuing VET is based on mixed financing by various public and private bodies. The training companies finance the in-company training. The Federal States fund the vocational schools (mainly teaching staff salaries) and the local authorities’ equipment and infrastructures. The Federal Government finances measures for the improvement and promotion of the apprenticeship system.

Public and private technical secondary school offering VET programmes leading to the officially recognised certifications are financed by the State. Training companies offering apprenticeship pay a monthly allowance to an apprentice which is fixed by a decree and varies according to the pursued VET programme. Part of this apprenticeship allowance as well as the employer’s share of the social security contributions for the apprenticeship allowance paid is refunded to the companies by the State in the context of a programme aiming to promote the apprenticeship system.

The Confederation, the cantons and professional organisations fund the Swiss VPET sector each to its own extend. Regarding initial VET-programmes, the cantons provide at least three-fourths of public funding. The professional organisations fund the branch courses and their members, the companies, bear the costs of apprenticeship training as well as the salaries of apprenticeship trainers and apprentices for assuring the next generation of qualified workers and because the short- and midterm benefits overweight the costs.