Understanding FUNDAE: Spain’s Employment Training Foundation

Did you know that Spanish companies can tap into a state-funded annual credit specifically designed for employee training? This valuable resource is offered by FUNDAE, making it easier for businesses to enhance their workforce’s skills and knowledge.

As an HR Manager or Learning and Development professional, you’re likely focused on enhancing your organization’s productivity, competitiveness, and employee growth. These key areas are essential for fostering a thriving workplace.

In this article, we’ll guide you through the process of accessing state-funded training, outlining the eligibility requirements you need to meet and providing tips on how to determine the credits necessary for your enrollment.

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What is FUNDAE in Spain?

The Fundación Estatal para la Formación en el Empleo (FUNDAE), also known as the State Foundation for Employment Training, is a key initiative by the Spanish government aimed at enhancing employment training across the country. Formerly recognized as the Tripartite Foundation, FUNDAE works closely with the Spanish Public Employment Service (SEPE) to foster skills development and improve job prospects for individuals in Spain.

FUNDAE is dedicated to enhancing the professional growth of individuals in the workforce. They advocate for continuous learning as a key driver of skill enhancement, which not only boosts qualifications but also significantly improves opportunities for job retention and career advancement.

Funding for this training is sourced from contributions made by both companies and employees. It’s important to highlight that FUNDAE does not directly organize or conduct courses; instead, it oversees public funds that help subsidize a portion of training expenses for businesses in Spain.

Additionally, FUNDAE plays a crucial role in managing bonuses for employee training. These bonuses are determined by the funds designated for training and the average number of employees from the previous year, ensuring a fair and effective allocation of resources.

In the culinary industry, FUNDAE offers financial support for training expenses, serving as a vital resource for businesses eager to enhance their employees’ skills without shouldering the entire cost.

FUNDAE serves as a vital pillar in Spain’s employment and training landscape, offering essential financial support and coordination to strengthen the country’s workforce. Its efforts are key to improving skills and boosting employment opportunities across the nation.

Law 30/2015, enacted on September 9, defines its roles and responsibilities within the Occupational Training System, aiming to enhance employment opportunities in the labor market.

What is state-funded training?

State-funded training offers companies subsidized education designed to boost their employees’ skills. These programs equip organizations to adapt to evolving labor market demands, ensuring their workforce remains competitive and proficient.

Companies can avail themselves of training related to their sector, allowing workers to increase their productive and professional capabilities.

If you’re working in talent management at your company, it’s important to recognize this type of subsidy that can greatly enhance productivity.

As of June 2022, FUNDAE data reveals that corporate English training is one of the top 10 most sought-after courses, boasting an impressive array of 33,553 training resources available to professionals.

How is the FUNDAE state-funded training paid for?

You might be wondering who pays for state-funded training if it involves no additional costs for the company.

These state-sponsored courses are financed by Spanish Social Security. Each month, employees and companies contribute to a training credit, a sum allocated specifically for workforce development, which varies based on the size of the company.

Example of the FUNDAE state-funded training

Picture a tourism company that has created innovative software designed to streamline client bookings. Eager to grow its international footprint, this business aims to establish a presence in new countries, enhancing its global reach and service offerings.

In addition to translating the entire platform into multiple languages, they aim to market the software to international companies. This will require their sales representatives to travel abroad to establish connections and facilitate sales.

Corporate language training offers employees a valuable opportunity to enhance their job-specific language skills, all at no expense to the company. This training not only boosts individual performance but also contributes to overall workplace effectiveness.

The company can ensure quality training for its employees and recover up to 100% of the language class expenses.

Characteristics of the FUNDAE state-funded training

In Spain, all companies, regardless of their size or location, can access state-funded training as long as they contribute to social security for occupational training. This initiative ensures that businesses have the opportunity to enhance their workforce skills without bearing the full financial burden.

FUNDAE oversees the training programs, giving companies the flexibility to select the courses, determine the number of employees to participate, and choose the format that works best for them—be it in-person, remote, or hybrid.

Course characteristics are as follows:

• The training must be related to the company’s professional activity.
• The training duration should be more than 2 teaching hours but never more than 8 hours per day.
• The course can be conducted online, in person, or in a hybrid format.
• In-person groups cannot exceed 30 students, and online groups, 80.
• Training conducted at conferences, workshops, or seminars will not be subsidized.

What is the credit for state-funded training?

State-funded training credit is the financial support a company can utilize to select courses for its employees. The amount available varies based on the company’s size and can build up over time, offering valuable resources for workforce development.

Companies have the opportunity to utilize an additional training credit to support employees who want to take Individual Training Leave (known as permiso individual de formación, or PIF in Spanish). This initiative helps foster workforce development by allowing workers to pursue further education and skills enhancement.

In this case, the company can claim up to 200 working hours per calendar year or academic course.

How to calculate your company’s training credit?

Businesses can receive reimbursement for up to 100% of training costs through Social Security. But how is the training credit determined?

Two factors are taken into account:

1. The amount contributed by the company for occupational training in the previous year.
2. The number of employees on the payroll in the last tax year.

The credit for state-funded training is calculated based on the number of employees:

• 1 to 9 employees: 100%
• 10 to 49 employees: 75%
• 50 to 249 employees: 60%
• More than 250 employees: 50%

Newly established organizations can take advantage of a credit of €60 for every new employee they add to their payroll, based on the previous year’s data. This incentive is designed to support growth and encourage hiring.

If you wish to confirm the amount available to you for courses, you can use FUNDAE’s calculator.

If your organization has fewer than 50 employees, you have the option to roll over your credit for this fiscal year and utilize it over the next two years. Just be sure to check the appropriate box in your application before the June 30 deadline to take advantage of this opportunity!

What is the maximum amount available?

By contributing to occupational training, your company can secure a guaranteed minimum credit of €420, no matter the training year or the size of your workforce.

The maximum amount of credit is as follows:

• Face-to-face courses, basic: €9/hour
• Face-to-face courses, advanced: €13/hour
• Online courses: €7.5/hour
• Blended courses: Credit will be assigned based on the previous rates, reflecting the balance of in-person and online hours.

How does private co-financing work?

Companies with over 5 employees must participate in the annual training plan. This collaboration is known as co-financing.

It is a percentage allocated by companies to meet training costs due to their size.

Co-financing percentages based on staff:

• 1 to 5 employees: exempt
• 6 to 9 employees: 5%
• 10 to 49 employees: 10%
• 50 to 249 employees: 20%
• 250 or more employees: 40%

Steps to access FUNDAE training

Through state-funded training, FUNDAE helps companies keep their employees up-to-date with the new skills required in their industry.

Are you in Human Resources and looking to take advantage of state-funded courses? Follow these three simple steps to request your enrollment and enhance your professional skills!

1. Choose the training that best fits your sector

Before starting the application, review the courses registered with FUNDAE that best align with your company’s activities.

Many training centers offer tailored assessments to identify your staff’s specific needs, focusing on areas like office skills and managerial competencies. This approach helps you maximize your investment by ensuring that training aligns with the skills your team requires.

2. Calculate the credit available to you

As mentioned above, knowing your company’s available credit is essential when it comes to choosing a course.

Always use data from the previous year when calculating amounts- figures from the current fiscal year won’t be any help.

3. Access the online application using the company’s digital certificate:

To access state-funded training, you’ll need a digital certificate—either personal or corporate—along with a private access code from an approved Certification Authority.

• Electronic DNI
• Spanish Public Certification Authority (CERES)
• Firmaprofesional, S.A
• Chambers of Commerce
• Certification Authority of the Directorate General of Police (DNIe)
• Izenpe, S.A
• Notarial Certification Agency (ANCERT)
• Certification Authority of the Valencian Community

What requirements must a company fulfill to access the FUNDAE state-funded training?

To fully benefit from FUNDAE programs, companies must ensure that they are current with all tax and social security obligations. Staying compliant is essential for accessing these valuable resources.

It’s crucial to keep the following points in mind. Ignoring any of these guidelines could lead to losing your eligibility for funding, having your Social Security contributions reduced, or even facing repayment demands.

Informing the Employees’ Legal Representation (RLT) that the course is taking place

We want to let you know that the course is happening! While there isn’t an official document for this announcement, FUNDAE has provided a helpful template that you can use.

Some companies inform the RLT at the beginning of the year when planning all annual training.

Alternatively, you can promote each course individually, provided that you submit all the required information at least 15 business days prior to its start date.

Announcing the start of the course

Once you’ve chosen the appropriate training program for your employees and finalized all necessary paperwork, it’s time to announce the training kickoff. Be sure to include the following key details:

• Start date
• Timings
• Location (or if conducted remotely)
• Number of participants

Carrying out the training in its entirety

To qualify for state funding for your chosen courses, all employees must successfully complete their training.

Announcing the end of the course

Once training is completed, notification must be given via the online application.

To qualify for funding, companies must ensure that employees who finish a qualifying course receive a certificate or diploma confirming their completion. This certification should be issued within two months of the course’s conclusion.

No official form exists to this end, but the document must detail course contents and total hours.

Applying the subsidy

The final step is to apply for the subsidy, which should be done after you receive notification that the course has concluded, provided all prior requirements have been satisfied. Remember, the application must be submitted by the end of December of the current tax year.

If the subsidy granted to a company surpasses its required contribution, the excess can be distributed across several months. If not, the surplus amount will be reimbursed by the General Social Security Treasury.

Conclusion

With a solid understanding of the essential elements of state-funded training and the signup process, you now possess a powerful resource for boosting your employees’ professional skills in Spain. This opportunity can significantly enhance their capabilities and contribute to your organization’s success.

If you’ve recognized the importance of enhancing your team’s language skills, consider utilizing FUNDAE training credits to provide engaging corporate language courses. This approach not only fosters professional development but also empowers your team to communicate effectively in a globalized workplace.

After completing the training, you can evaluate its effectiveness by calculating the Return on Investment (ROI). This assessment helps you determine the value of the training, making it simpler to choose and prioritize future courses that will yield the greatest benefits.