Financially-supported development of employees’ professional skills
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.
Employer must prepare a training plan. At workplaces of at least 20 employees that are covered by the Act on Co-operation within Undertakings, the employer must prepare a training plan in order to receive the financial incentive. 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 Act on Co-operation within Undertakings.
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.
Law-drafting: Nico Steiner, nico.steiner(at)gov.fi