Financially-supported development of employees’ professional skills

Note: the Act on Financially-Supported Development of Professional Skills will be amended as of 1.1.2025.

The development of employees’ professional skills is on the basis of the needs of business life and public services, but also on the basis of enhancing long-term employment opportunities. Employers are entitled to tax relief for vocational training that they organise provided that the training is systematic and necessary for maintaining and developing the employees’ professional skills.

There are several acts containing provisions on the development of employees’ professional skills. The Act on Financially-Supported Development of Professional Skills is applied in both the private and the public sector, irrespective of the size of the employer. Certain organisations mentioned in the act and households acting as employers remain outside of the scope of the act.

In order to receive a financial incentive, the employer must draw up a training plan. For employers covered by the Co-operation Act, the content of the training plan is determined in accordance with the applicable Act on Co-operation.  The provision on a training plan contained in the Act on Financially-Supported Development of Professional Skills is applied in workplaces outside of the scope of application of the Co-operation Act.

Provisions on the conditions for receiving the financial incentive and the amount of the incentive are laid down in tax legislation and in the Act on Compensations for Training.

Further information

Law-drafting: Elli Nieminen, elli.nieminen(at)gov.fi