In order to know what the Credit for Continuing Education is, the concept of subsidized training must first be explained.
The subsidized training is a credit granted to companies to invest in the professional training of workers. With the aim of increasing the performance and competitiveness of their work team.
Every month, all companies and workers contribute a sum to Social Security for training through social insurance. This amount can be recovered later, in part or in its entirety, to be invested in courses for the employees.
In this way, companies have the possibility of improving the skills of their employees without the need to pay an additional amount. Therefore, bonus training courses are presented as an excellent option to achieve an increase in productivity.
Credit for Continuing Education. Calculation
The available credit is calculated, depending on the size of your company, by applying a percentage to the contributions for professional training made to Social Security in the previous year. According to the following scale:
- Less than 6 employees: you have a fixed amount of 420€.
- From 6 to 9 workers: you have 100% of the contributions made to professional training.
- For companies with 10 to 49 employees: you have 75% of the contributions made to professional training.
- From 50 to 249 workers: 60% of the contributions made to vocational training.
- From 250 workers: you have 50% of the contributions made to vocational training.
Which agency is in charge of coordinating the subsidized training?
The entity in charge of promoting and coordinating subsidised training for companies is the State Foundation for Training in Employment (FUNDAE), known as the Tripartite Foundation. This institution collaborates with the Public Employment Service and is dedicated to carrying out the execution of public policies on vocational training related to employment.
Various business organizations such as CEOE or CEPYME participate in FUNDAE, as well as trade unions such as UGT, CCOO and CIG.
Credit for Continuing Education. Characteristics and requirements
Main characteristics of the bonus training
- It is intended exclusively for workers in an enterprise, not for the self-employed or the unemployed.
- The company itself is in charge of deciding and managing the courses.
- The company assumes a percentage of the financing of the courses.
- Only the bonus is applied for face-to-face and online courses, not distance courses.
Requirements to be met by the beneficiary companies
- Be up to date with obligations to the Tax Agency and Social Security.
- To pay the amount of the invoices of the training action before the bonus is made.
- Maintain the documentation justifying the training for a minimum of 4 years.
- Provide the necessary documentation and data to the organising entity to carry out the corresponding procedures with the State Foundation for Training in Employment (FUNDAE).
Credit for Continuing Education. Expiry dates
The credit earmarked for continuing training for each company expires each year on 31 December. Credit drawn down, which must be reported to the Social Security together with the contributions for the month of December, which is managed in the month of January.
However, there is one exception. Companies with fewer than 50 employees who, in the first half of the year, informed the State Foundation for Training in Employment of their intention to accumulate the training credit to that of the following two years. Therefore, if your company has fewer than 50 employees and you did not make this communication within the first semester, remember that you have until the end of the year to make use of the credit intended for continuous training of your staff.
If you need help, the experts of our Labour Consulting Dept. will be at your disposal.