Germany is actively implementing measures to ensure the ongoing competitiveness of its labor market amidst technological advancements and demographic shifts. Renowned for its robust economy and highly skilled workforce, Germany is making a significant investment in workforce development through the introduction of the "Qualifikationsgeld" (Qualification Allowance) program. The initiative was introduced on the 1st of April 2024 and aims to help equip workers with the necessary skills required for the future.
What is Qualifizierungsgeld?
The German federal government is spending over three billion euros to pay Qualifizierungsgeld to employees so they will have the motivation to earn a new certification and skills. Workers who would otherwise be let go should be given the chance to retrain so they can work for the company on different projects while maintaining their employment. The aim of the programme is to help workers transfer into new jobs, particularly in sectors with a skills shortage or significant technological developments. The government hopes to remove financial obstacles that might keep people from seeking higher education or training by providing financial aid.
Objectives of Qualifizierungsgeld
-
Addressing Skill Shortages: Some skills become outdated as sectors evolve, while others are in great demand. In order to close this skill gap, Qualifizierungsgeld provides people with the opportunity to acquire the skills required for new employment sectors.
-
Promoting Lifelong Learning: Ongoing education is crucial in a labor market that is changing quickly. By promoting a culture of lifelong learning, this program makes sure that the labor force is resilient and flexible.
-
Supporting Technological Transition: Rapid technical developments are occurring in industries like manufacturing, information technology, and renewable energy. Qualifizierungsgeld minimizes job displacement by facilitating employees' seamless transfer into new roles within these industries.
-
Enhancing Economic Competitiveness: Germany wants to keep its advantage in the international market by investing in the skill development of its labor force. The workforce needs to be highly skilled if innovation and economic growth are to occur.
Eligibility Criteria
To qualify for the Qualifizierungsgeld, several conditions must be met:
-
Structural Change Requirement: Because of structural changes, a sizable number of your staff (20% for businesses with 250 or more employees, and 10% for businesses with fewer than 250 employees) must have documented training needs. An employer's written declaration is adequate for businesses with fewer than ten employees.
-
Training Duration: The professional training must consist of a minimum of 120 hours, either full-time, part-time, or in conjunction with employment.
-
Approved Training Provider: The training provider must be accredited for funding under the AZAV (Accreditation and Licensing Regulation for the Promotion of Employment).
-
Scope of Training: Training ought to provide information and skills that go beyond temporary, job-specific changes. Training on software exclusive to the organization, for instance, is not covered.
Application Process
The Qualifizierungsgeld must be applied for in writing by employers, preferably three months before the start of the training. To take part in the training, employees must give their permission. The application can be done online on the website of the Federal Employment Agency.
There are various steps in the application process:
-
Filling Out Forms: Fill out the required forms, which can be found as PDF files. Before filling out the forms, download and save them. Basic details about your business and the employees taking part in the training are needed for the application.
-
Application for Qualification Allowance
-
List of participating employees (basic data)
-
Calculation list of the Qualifizierungsgeld for participating employees
-
Employee consent form
-
-
Make sure every form is filled out completely and has the employees' signatures. Your employer service contact person can address any inquiries you may have about the necessary information.
-
Uploading Files: Once the forms have been filled out and digitalized, together with any required paperwork, upload the files to finish the application process.
Amount of the Allowance
The Qualifizierungsgeld covers 60% of the average net wage difference. Employees with at least one child receive 67% of the net wage difference.
The qualification allowance serves as a substitute for income. This implies that for the time they spend participating in additional training, workers receive payment from the employment agency rather than their paycheck. They are shielded from the possibility of unemployment and given new job opportunities as a result. The cost of the training is paid by the employer, who benefits from this opportunity just as much.
Impact and Future Prospects
The introduction of Qualifizierungsgeld has the potential to bring about several positive outcomes for the German economy and society:
-
Reduced Unemployment: By equipping workers with in-demand skills, the initiative can help reduce unemployment rates, especially among those displaced by technological advancements.
-
Increased Productivity: A more skilled workforce can lead to higher productivity levels, driving economic growth and enhancing the country's competitive position globally.
-
Social Cohesion: By providing opportunities for all workers to upgrade their skills, the initiative promotes social inclusion and reduces the risk of economic disparity.
-
Innovation and Growth: Continuous skill development fosters a culture of innovation, essential for the growth of new industries and the advancement of existing ones.
Conclusion
In Germany, Qualifizierungsgeld serves as an innovative strategy for workforce development. The country recognizes the importance of investing in the skills and credentials of its workforce to prepare for future economic demands and address current labor market challenges. This program highlights the significance of continuous learning and adaptability to maintain a strong and competitive workforce. As other countries aim to enhance labor capacities and sustain economic growth in the face of evolving global conditions, Qualifizierungsgeld provides a valuable model to consider.
Find the Right Training Provider
Are you an employer looking to invest in the development of the workforce of your company or an employee who wants to stay competitive in the advancing technological field? Code Labs Academy is a recognized and certified training provider and offers bootcamps that bring employees up to speed with the latest developments in the IT industry and prepare them for the challenges of digital structural change. Our flexible hours and part-time options make it possible to combine training with work. Contact us now about our corporate training program and we will help you create a tailor-made program for your professional needs.
