1Praktikplads-AUB – What does it mean for you as an employer?

Praktikplads-AUB

– What does it mean for

you as an employer?

2Praktikplads-AUB – What does it mean for you as an employer?

Can you imagine a working day without vocationally trained employees?

That’s the way things are heading if we don’t do anything about it.

3Praktikplads-AUB – What does it mean for you as an employer?

Preface – Dear EmployerP. 4

Understand the Praktikplads-AUB scheme in two minutes

P. 5

How many trainees should you employ?P. 7

When should you employ trainees?P. 9

You can receive a bonusP. 11

How to employ traineesP. 10

If you do not meet your target for trainee points

P. 14

Would you like to know more?P. 15

Read the booklet from start to finish and get a full overview or go directly to a section.

The Booklet’s Contents

4Praktikplads-AUB – What does it mean for you as an employer?

Dear Employer

What is a vocational training programme? A vocational training programme is a training programme where most of the teaching typically takes place in an establishment, such as an industrial company, a craft company, a kitchen or a shop.

There are more than 100 vocational training programmes. They include, for example, a bricklayer, office skills training, an electrician, a building painter, a hairdresser, a mechanic, a nutrition assistant and a glazier.

A vocationally trained employee is a person who has a vocational training programme as their highest level of education.

The Danish labour market lacks vocationally trained employees in a wide range of trades. Therefore, it might be difficult for you as employers in the future to recruit the number of skilled employees you need.

There is a need for creating more internships and for more young people and adults choose applying for and pursuing a vocational training programme.

The new scheme will create more internshipsIn August 2016, the government and the EU social partners concluded an agreement which rewards employers who train trainees from the vocational training programmes. Employers who do not contribute sufficiently to train trainees will have to pay an extra contribution to the Praktikplads-AUB scheme.

Part of the agreement is called Praktikplads-AUB and will ensure that more internships are established. For you, it means that you’ll receive a target every year for how many trainees you’ll employ during the year.

By training more trainees, you help to ensure your own access to qualified labour in the future.

In this booklet you can read about what the new scheme means for you and what you can do. Yours faithfully,

&

To the overview

5Praktikplads-AUB – What does it mean for you as an employer?

Here you receive a quick overview

of which employers are part of

Praktikplads-AUB and what the

scheme entails.

Who are included in the Praktikplads-AUB scheme?

Praktikplads-AUB is mandatory for

all employers who have reported full

supplementary pension contributions

(ATP-bidrag) for more than one full-time,

vocationally trained employee in the previous

year. For example, if you have several part-

time vocationally trained employees, they

can comprise a full-time employee.

The Praktikplads-AUB scheme has to reach breakeven point each year

The incoming and outgoing payments in the

Praktikplads-AUB scheme have to balance,

so that the accounts reach breakeven point

each year.

This means that if more contributions are paid

in than profits are paid out for vocationally

trained employees, the profits will be paid

to the employers. Conversely, an additional

contribution from employers will be collected if

there is a loss.

Understand the Praktikplads-AUB scheme in two minutes

Who are included in the Praktikplads-AUB scheme?

You can see the amount of your preliminary income assessment

Please note:

Praktikplads-AUB is a new scheme and

does not affect the regular AUB contribution, which

therefore continues unchanged.

Your vocationally trained employees result in a reduction

The Praktikplads-AUB scheme’s cycle

All employers who reported full supplementary pension contributions (ATP-bidrag) for more than a full-time, vocationally trained employee the previous

year. Several part-time vocationally trained employees can comprise a full-time employee.

Contributions Loss

-

EmployersPraktikplads

AUB

Internship bonusBeneficial bonusReduction for traineesProfit

+

+

To the overview

6Praktikplads-AUB – What does it mean for you as an employer?

When do you know how many trainees you need to employ?

Each year in April you’ll receive a preliminary

income assessment with your target of how

many trainees you need to employ during the

current calendar year. The preliminary income

assessment shows whether you’re currently

above or below your target. You can also see

whether you’re receiving a payment order or

payment from the Praktikplads-AUB scheme.

You have until 31 December of the current year

to meet your target.

In June of the year thereafter you’ll receive

your annual statement to see if you fulfilled

your target. The annual statement also shows

whether you receive a bonus or need to

pay a contribution. Your Praktikplads-AUB

component is included in your payment order

under Samlet Betaling.

You receive a reduction for your vocationally trained employees

If you employ vocationally

trained employees you’ll

receive a reduction of your

Praktikplads-AUB contribution.

You will already see in your preliminary income

assessment how much the reduction will be

with your current number of vocationally trained

employees. Every year a rate is calculated per

vocationally trained employee.

View the applicable rate at

www.virk.dk/praktikplads-aub

When do you know how many trainees you need to employ?

You can keep an eye on your preliminary income assessment on an ongoing basis at: www.virk.dk/praktikplads-aub-selvbetjening

You’ll receive a preliminary income

assessment

The preliminary income assessment shows how

many trainees you need to employ

You can also see whether you’re receiving

a payment order or payment from the Praktikplads-AUB

scheme

In June of the following year you’ll receive your

annual statement

Here you can see if you’ve met your

target

PRAKTIKPLADS-AUB

FORSKUDS-OPGØRELSE

PRAKTIKPLADS-AUB

ÅRSOPGØRELSE

-+

And whether you receive a bonus or need to pay a contribution

To the overview

7Praktikplads-AUB – What does it mean for you as an employer?

How many trainees should you employ?

The number of trainees you need to employ

depends, among other things, on the number

and composition of your vocationally trained

employees. How many trainees need to be

employed therefore varies from employer to

employer.

We convert the number of trainees you need

to employ to TRAINEE POINTS. This is due to

the fact that trainees are weighted differently

depending on their educational background,

as some qualifications weigh more than others.

That’s why you don’t receive an exact figure of

how many trainees you need to employ and for

how long.

It depends on which trainees you employ.

When you receive your preliminary income

assessment, you can see if you’re above or

below your target for how many trainees you

need to employ. That is to say, whether you’re

above or below your target for trainee points.

You have to pay a contribution to the

Praktikplads-AUB scheme for each trainee

point you’re lacking when the year is over. In

2018 the contribution is DKK 27,000.00 per

lacking trainee point.

See how much the qualifications weigh

Landscape gardener

1.07TRAINEE POINTS

Carpentry qualification

1.09TRAINEE POINTS

Office skills qualification

1.05TRAINEE POINTS

Gastronomist

0.97TRAINEE POINTS

See the current weighting of the programmes at: www.virk.dk/praktikplads-aub

Every year, all vocational training programmes are assigned a weighting based on how much

of a need there is expected to be for vocationally trained employees with this qualification. The

examples are from 2018

To the overview

8Praktikplads-AUB – What does it mean for you as an employer?

Nielsen and Jensen A/S receive their preliminary income statement

from the Praktikplads-AUB scheme. It states that they currently

employ too few trainees and that they lack 1.20 trainee

points. If they don’t employ trainees, they have to pay a

contribution to the Praktikplads-AUB scheme of DKK

32,400.00. (1.20 x 27,000).

Nielsen and Jensen A/S would like to meet their target

and decide to employ more trainees. The company

would like to employ an electrician apprentice and a

toolmaker apprentice. The company therefore logs in on

its own page at

www.virk.dk/praktikplads-aub-selvbetjening

At Virk.dk it appears that Nielsen and Jensen A/S, by employing

an electrician apprentice for at least 34 weeks and a toolmaker

apprentice for at least 22 weeks, will meet its target of 1.20 trainee

points in the current year.

Nielsen and Jensen A/S contact the local vocational training

college to enter into an ordinary training agreement with an

electrician apprentice and a toolmaker apprentice.

They conclude training agreements which last for several years, and

Nielsen and Jensen A/S thereby achieves the 1.20 trainee points

in the current year. The parts of the training agreements which

stretch beyond the current year are included in the calculation of the

Praktikplads-AUB component for the coming year.

The company Nielsen and Jensen A/S has to employ more trainees

EXAMPLE:

FORSKUDS-OPGØRELSE

PRAKTIKPLADS-AUB

To the overview

9Praktikplads-AUB – What does it mean for you as an employer?

You have the opportunity to employ trainees

all the time. You should be aware that your

Praktikplads-AUB component is calculated

over a calendar year – from 1 January to 31

December. This means that all the training

agreements you enter into during the calendar

year count towards the calculation.

For example, if you have a trainee in an

employee training programme for more than

one calendar year, it is only the part of the

agreement in the current calendar year which

is included in the calculation. The rest of the

training agreement is included in the previous or

next calendar year.

Every year in April you’ll receive a preliminary

income assessment detailing your target for

trainee points, your current trainee points, and

whether you’re above or below your target.

In June of the year thereafter you’ll receive your

annual statement to see if you fulfilled your

target.

You can read more about the training

agreements which count towards the

calculation at www.virk.dk/praktikplads-aub

When should you employ trainees?

How your training agreements count

All training agreements in the calendar year, which are included in the Praktikplads-AUB

scheme, count towards the calculation.

The parts of the training agreement which do not fall within the current year count towards the

previous or following year.

2019 2020

311

How training agreements exceeding a year count

2018

Please note that your target for trainee points and your current trainee points can change on

an ongoing basis if the number and composition of vocationally trained employees and trainees

in your company changes.

You can keep an eye on your preliminary income assessment on an ongoing basis at: www.virk.dk/praktikplads-aub-selvbetjening

To the overview

10Praktikplads-AUB – What does it mean for you as an employer?

You can find trainees and job advertisements at

www.praktikpladsen.dk. You can also receive

help from your local vocational training college.

You must be approved in orderto employ trainees

You must be approved as a work placement

site to be able to employ trainees. You can

learn more about being approved by contacting

your local vocational training college, which

can also help you apply for approval from the

vocational training committee.

Together with the vocational training college,

you can find out which programmes you can

be approved for for training trainees. You will

be approved on the basis of your professional

profile. An approval certifies that you meet

the requirements needed to be able to train a

trainee.

If you cannot be approved to train trainees

for a full training programme, you may be

approved to train trainees for parts of a training

programme.

You can read more at www.praktikpladsen.dk

If you have not been able toemploy a trainee

You can apply for a reduction of your

Praktikplads-AUB component if you have failed

to find an internship and sought out a trainee at

www.praktikpladsen.dk for at least 90 calendar

days.

You can read more about the criteria at www.

virk.dk/praktikplads-aub

How to employ trainees

You can find trainees here

You can find trainees and job advertisements at www.praktikpladsen.dk

You can receive help from your local vocational training college.

Get suggestions for trainees you can employ: www.virk.dk/praktikplads-aub-selvbetjening

To the overview

11Praktikplads-AUB – What does it mean for you as an employer?

You have the opportunity to

receive two kinds of bonuses

for your full-year trainees.

Read here how to receive them.

1. Internship bonus

You can receive an internship bonus if you meet

two criteria:

1. You must have met your target for trainee

points for the current year.

2. You must have had more full-year

trainees in the current year compared

with your average number of full-year

trainees over the last three years.

How much can you receive?

You can receive DKK 25,000.00 per full-year

trainee. The total amount will appear on your

annual statement and will automatically be

included in the next payment order from Samlet

Betaling. The Praktikplads-AUB scheme

determines whether you meet the criteria. You

should, thus, not apply for an internship bonus.

You can receive a bonus

How you receive an internship bonus

This is what you receive an internship bonus for

You must meet your target for trainee points

for the current year

The size of your internship bonus depends on how much you exceed your average number of full-year

trainees over the last three years

You must have more full-year trainees than your average for the

last three years

Full-year trainees

1 2

You can keep an eye on your preliminary income assessment on an ongoing basis at: www.virk.dk/praktikplads-aub-selvbetjening

Last three years Current year

The increase is included in the internship bonus

calculation

+ +

A full-year trainee

corresponds to a trainee in an employee training programme for

an entire calendar year.

To the overview

12Praktikplads-AUB – What does it mean for you as an employer?

Example: This is how the construction company BYG TIL NYT will receive an internship bonus

The construction company Byg Til Nyt has

a target of 5.05 trainee points. This means

that they need to employ more trainees.

They therefore employ a carpenter and an

electrician. When they receive their annual

statement it is stated that they’ve achieved 5.51

trainee points. They have therefore met their

target and the first criterion for receiving an

internship bonus.

At the same time, Byg Till Nyt has had 5.70

full-year trainees on average over the last three

years. In the current year they’ve had 6 full-year

trainees, which means they have more trainees

than their average over the last three years.

Byg Till Nyt has met the two criteria for an

internship bonus. They receive a bonus for the

number of full-year trainees who exceed their

average number of full-year trainees over the

last three years. They receive a bonus of DKK

7,500.00 for 0.30 full-year trainees (6.00 - 5.70):

0.30 full-year trainees x DKK 25,000.00 (per full-

year trainee) totalling DKK 7.500.00.

You can see on your preliminary income

statement if you’re entitled to receive a bonus at

www.virk.dk/praktikplads-aub. If your company

has not existed for three years, your average

is calculated based on the years you have

existed.

The company’s target for trainee points is

5.05

The company has had 5.70 full-year trainees on average for the last three years

For the current year they’ve had6 full-year trainees

The annual statement states that they have achieved 5.51 trainee

points

The first criterion

The first criterion is met

The second criterion is met

This is how the construction company BYG TIL NYT will receive an

internship bonus

The second criterion

5.05

5.515.05

1

2

To the overview

13Praktikplads-AUB – What does it mean for you as an employer?

2. Beneficial bonus

You can earn a bonus if you employ trainees

from a beneficial training programme.

Beneficial training programmes are training

programmes for trades which have a great

demand for labour. It is the employers’

organisations which can apply for the training

programme to be designated as a beneficial

training programme.

Please note that you can only receive a

beneficial bonus if the training agreement is

commenced on 1 January 2017 or later.

How much can you receive?

You can receive up to DKK 5,000.00 per full-

year trainee. A full-year trainee corresponds to

a trainee in an employee training programme

for an entire calendar year.

The beneficial bonus consists of a fixed pool

of DKK 20 million each year. Once the year

has elapsed, the pool will be divided among

employers who have employed trainees from a

beneficial training programme. The final amount

will appear on your annual statement and will

automatically be included in the next payment

order from Samlet Betaling.

The list of beneficial training programmes for

the current year can change once the year has

elapsed. This can happen if some programmes

do not meet the requirements for a beneficial

training programme.

How to receive a beneficial bonus

You can receive a beneficial bonus if you employ trainees from a beneficial training programme

See the beneficial training programmes here:www.virk.dk/praktikplads-aub

The list of beneficial training programmes for the current year can change once the

year has elapsed

See the beneficial training programmes here:www.virk.dk/praktikplads-aub

To the overview

14Praktikplads-AUB – What does it mean for you as an employer?

If you have not met your target for trainee

points, you have to pay a contribution to

the Praktikplads-AUB scheme. You can

see how much you have to pay towards the

Praktikplads-AUB scheme on your annual

statement, which comes in June of the year

after your preliminary income assessment.

See the current rate per lacking trainee point at

www.virk.dk/praktikplads-aub.

Your Praktikplads-AUB component is included

in your payment order under Samlet Betaling.

It all happens automatically, so there’s nothing

which you have to do.

Example: MIKKELSEN & CO. have not employed enough trainees

The consulting engineering company Mikkelsen

& Co. receives its annual statement in June.

They employ a trainee equivalent to 0.75

trainee points, but have not met their target of

1.20 trainee points from the previous year. The

company must therefore pay a contribution

to the Praktikplads-AUB scheme of DKK

12,150.00.

(1.20 - 0.75) = 0.45 x DKK 27.000.00 (per

trainee point) totalling DKK 12,150.00.

On their payment order from Samlet Betaling,

they can see the fee from the Praktikplads-AUB

scheme of DKK 12,150.00. Had Mikkelsen and

Co. not employed a trainee, they would have

received a fee of DKK 32,400.00 (= 1.20 x DKK

27,000.00)

If you do not meet your target for trainee points

Mikkelsen & Co. does not meet the target

Because the company’s trainee points achieved are less than their target for trainee

points, they have to pay a contribution

Mikkelsen & Co. has a trainee equivalent to 0.75 trainee points, but has not met their

target of 1.20 trainee points.

0.75

1.20

You can keep an eye on your preliminary income assessment on an ongoing basis at: www.virk.dk/praktikplads-aub-selvbetjening

To the overview

You can read more about the Praktikplads-AUB scheme at

www.virk.dk/praktikplads-aub

You can keep track of your preliminary income statement and,

later, your annual statement on an ongoing basis at

www.virk.dk/praktikplads-aub-selvbetjening

The Praktikplads-AUB scheme is part of a tripartite agreement regarding sufficient and

qualified labour in Denmark and internship venues.

Read more about the agreement at www.uvm.dk/trepart2

Would you like to know more?

AUB

PRAKTIKPLADS-AUB

To the overview