FINANCING OF FURTHER PROFESSIONAL TRAINING IN HUNGARY Jakab János

TOPICS OF THIS PRESENTATION (1) PRELIMINARIES WHAT IS THE FURTHER PROFESSIONAL TRAINING? INDICATORS IN EUROPE AND HUNGARY CHANGING OF EMPLOYMENT POLICY AND THE LAW OF EMPLOYMENT TARGET GROUPS OF ADULT TRAINING TARGET GROUPS OF PUBLIC MONEY DISTRIBUTION IN THE FIELD OF ADULT TRAINING THE MAIN SYSTEMS OF PUBLIC FINANCE

DIRECT AND INDIRECT STATE FINANCING SOURCES OF ADULT TRAINING SYSTEM OF THE VOCATIONAL TRAINING CONTRIBUTION SEGMENT OF THE EMPLOYMENT sub- fund FOR ADULT TRAINING PURPOSES NORMATIVE SUPPORT OF ADULT TRAINING TAX BREAK OF ADULT TRAINING MONITORING AND CONTROLLING TOPICS OF THIS PRESENTATION 2.

WHAT IS THE FURTHER PROFESSIONAL TRAINING?  HUNGARIAN SLIDES: 5  THE INTERNATIONAL SLIDES ALTOGETHER  Very different form: TRADITIONAL FORM EVENING FORM DISTANCE FORM …

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LEGISLATIVE FRAMEWORK  Public Education Act (1993, LXXIX)  Higher Education Act (2005, CXXXIX)  Adult Training Act (2001, CI)  Vocational education and training Act (1993, LXXVI)  Labour Code Act (1992, XXII)  Facilitating employment and provisions to the unemployed Act (1991, IV)  Vocational training contribution and the support of the development of training Act (2003, LXXXVI)  National Qualification Register Order (1993 and 2006)

ADULT TRAINING OUTSIDE THE SCHOOL SYSTEM Ministry of Social Affairs and Labour Level of central and regional management National Institute of Adult Education National Employment Service (Central Employment Office and Employment centres) Accreditation Body for Adult Education Employment councils National Council of Adult Education National Council of Reconciliation Professional bodies of NQR Registered adult training companies 9 regional training centres Accredited adult training companies and higher educational institutions Vocational schools Level of educators Level of bodies

TARGET GROUPS OF CVET  EMPLOYED PEOPLE (3.9 MILLION – POPULATION IS 10.1 MILLION)  UNEMPLOYED PEOPLE (ACCORDING TO KSH – 255,000, ACCORDING TO THE LOW OF EMPLOYMENT – 360,000) SHORT TERM UNEMPLOYED LONG TERM UNEMPLOYED  INACTIVE PEOPLE (1.5 MILLION – ESTIMATED) SHORT TERM INACTIVE PEOPLE LONG TERM INACTIVE PEOPLE RETIRED PEOPLE

TARGET GROUPS OF THE CVET  PEOPLE WITH DIFFERENT SCHOOL QUALIFICATION (S): WITHOUT GCSE WITH GCSE WITHOUT WITH QUALIFICATION (S)  ACTIVE PEOPLE WITH WORKPLACE  INACTIVE PEOPLE SHORT TERM LONG TERM RETIRED

PLACES OF THE CVET  INSIDE OF SCHOOL GCSE SEC. VOC. SCHOOL UNIVERSITY POST GRADUATED  OUT SIDE OF SCHOOL INITIAL VET CONTINUE VET TRAININGS – FOR BETTER EMPLOYABILITY SUPPLEMENTARY TRAINING

AIMS OF PUBLIC MONEY Registered unemployed, People endangered by reported Expected unemployment according to act TARGET GROUPS: Disadvantaged Career-starter Aged people Handicapped People on Child-care support or on child- care allowance Inactive Homelessness Etc. TARGETS: Development; Economic development; Change in structure; Development of technology; Stimulation of investments; Development of training Infrastructure; Development of curriculum; Development of methodology; Development of services. DISTRIBUTION AND ITS TARGET GROUPS IN ADULT TRAININGS

THE MAIN SYSTEMS OF THE PUBLIC FINANCE (PUBLIC MONEY) (ACCORDING TO ACT OF PUBLIC FINANCES)  STATE BUDGET  BUDGETS OF LOCAL GOVERNMENTS  DETACHED STATE FUNDS  SOCIAL SECURITY  + EU SOURCES

NON-SCHOOL BASED ADULT TRAINING STATE SUPPORT RESOURCES Resources STATE BUDGET& MINISTRY BUDGET LABOUR MARKET FUND OBLIGATION OF VOCATIONAL TRAINING CONTRIBUTION NORMATIVE SUPPORT OF ADULT TRAINING 2003: 1.73 MEUR 2004: MEUR EMPLOYMENT sub-fund FRAME FOR TRAINING FROM THE ACTIVE INSTRUMENTS 37 MEUR ADULT TRAINING FRAME 2003: 18.2 MEUR 2004: 16.8 MEUR 33% OF THE OBLIGATION OF VOCATIONAL TRAINING CONTRIBUTION 2003: MEUR 2004: MEUR (Total possibility: 61.8 MEUR) UNSKILLED, DISADVANTAGED UNEMPLOYEDTHOSE WHO ARE ABOVE THE AGE OF 16 OWN EMPLOYEES Law of the Public Budget in Of Hungary Government decree on the detailed rules of the normative support of adult training / 15/2003. (II. 19)/ Law on Vocational Training Contribution and on the Support of Training Development (2003/LXXXVI.) ME decree on the rules and conditions of charging the costs of organized trainings participated by own employees occurred at those obliged to vocational training contribution and meet by vocational training /32/2001 (IX. 14)/ TAX BRAKE YEARLY 218 EURO/P PARTICIPANT IN ADULT TRAINING Law on personal income tax (1995/CXVII.) Law on the Support Employment and on the Supply of Unemployed (1991/IV.) ELM decree on the use of the non-school based adult training frame of employment sub-fund of Labour Market Fund /8/2003. (VII. 04.) Amount Target groups Laws

VET OBLIGATORY SUBSIDY (AFTER NET SALARY 1,5%) EMPLOYEES TRAINING HAND OVER FOR VET INSTITUTIONS PAY IN FUND PRACTICAL TRAINING CONTRIBUTION OF THE VET DEVELOPMENT

SYSTEM OF VOCATIONAL TRAINING CONTRIBUTION  VOCATIONAL TRAINING CONTRIBUTION AS SOURCE  THOSE OBLIGED TO CONTRIBUTE  POSSIBILITIES OF FULFILLING THE OBLIGED CONTRIBUTIONS Practical trainings of students at companies Financial support for the purpose of development of trainings at vocational schools, high schools and tertiary institutions TRAINING OF THE COMPANIES OWN EMPLOYEES PAYMENTS INTO THE TRAINING SUB-FUND OF LABOUR MARKET FUND

VOCATIONAL EDUCATION AND TRAINING FUND EMPLOYERS FOR THE PRACTICAL TRAINING HUNGARIAN MINORITY AND OTHER TASKS NATIONAL DEVELOPMENT PLAN ADULT EDUCATION (33%) VOCATIONAL EDUCATION AND TRAINING (66%) CENTRAL VET BUDGET (33%) CENTRAL PROGRAMS OTHER OBLIGATORY TASKS REGIONAL VET BUDGET (66%) PURPOSES OF SPENDING OF THE FUND

TRAINING OF THE COMPANIES OWN EMPLOYEES  THE USABLE AMOUNT IS THE ONE THIRD OF THE TOTAL OBLIGATION, THAT IS THE 0.5% OF THE DUTY COST  AN APPLICATION ON BILLABILITY HAS TO BE SUBMITTED TO THE LABOUR CENTRES, WHICH MAKES THE DECISION

RESOURCES OF THE LABOUR MARKET FUND (DETACHED STATE FUND) RESOURCES:  EMPLOYERS’ CONTRIBUTION  WORKERS’ CONTRIBUTION  PAYMENT OF VOCATIONAL TRAINIG CONTRIBUTION INTO THE TRAINING SUB-FUND  STATE BUDGET

UTILIZATION OF LABOUR MARKET FUND  Solidarity sub-fund  Income subsidy sub-fund  Employment sub-fund  Wage guarantee sub-fund  Vocational training sub-fund  Rehabilitation sub-fund  Operational sub-fund  Employment sub-fund: DECENTRALIZED SEGMENT (BY EMPLOYMENT CENTRE DECISIONS) CENTRE SEGMENT (DECISION OF THE BOARD CONTROLLING THE LABOUR MARKET FUND) ADULT TRAINING SEGMENT (SUGGESTION OF THE COUNCIL OF ADULT TRAINING, DECISION OF THE MINISTER)

SOURCE OF THE ADULT TRAINING SEGMENT  ACCORDING TO ACT OF VOCATIONAL TRAINING CONTRIBUTION, THE SOURCE OF THE ADULT TRAINING SEGMENT IS ABOUT 1/3 OF THE VOCATIONAL TRAINING SUB-FUND, WHICH IS DECIDED ACCORDING TO THE CONSULTANCY OF THE MINISTER OF EDUCATION AND THE MINISTER OF EMPLOYMENT.  DEGREE OF VOCATIONAL TRAINING SUB-FUND: BILLION HUF/YEAR  DEGREE OF ADULT TRAINING SEGMENT: 5-6 BILLION HUF/YEAR

UTILIZATION OF ADULT TRAINING SEGMENT (BHUF) TARGET GROUPS DEVELOPMENT INFRASTRUCTURE TRAINING FOR DEVELOPMENT PURPOSES DEVELOPMENT STIMULATION LAYER PROGRAMS MEDIA, TELE-EDUCATION RESEARCHES, SURVEYS, PREPARATIONS FOR DECISION MAKING HRD OP OTHERS TOTAL

SOURCE OF THE ADULT TRAINING NORM  STATE BUDGET  BUDGET OF THE MINISTRY OF EMPLOYMENT AND LABOUR AMOUNT: 2003: 0,475 billion HUF 2004: 2,9 billion HUF 2005: 3,0 billion HUF

THE USE OF THE ADULT TRAINING NORM  THE TARGET GROUP OF THE SUPPORT IS THE UNSKILLED AND HANDICAPPED, AND ALSO OTHER TARGET GROUPS DEFINED BY THE GOVERNMENT  THE ALLOCATION OF THE RESOURCES IS EXECUTED BY THE MINISTRY VIA THE ACCREDITED TRAINING INSTITUTIONS  THE FORM OF THE ALLOCATION ISN’T COMPETITIVE TREND, BUT NORMATIVE SUPPORT

THE PERSONAL INCOME TAX BREAK OF ADULT TRAINING  ALL OF THE ADULTS ARE ALLOWED TO DEDUCT MAXIMUM 60 THOUSAND HUF FROM THE PERSONAL INCOME TAX, IF HE/SHE HAVE PARTICIPATED IN ADULT TRAINING AND CAN VERIFY THIS.  LAW ON PERSONAL INCOME TAX  IN THOUSAND PEOPLE TOOK ADVANTAGE OF THIS BREAK

PLANNING AND MONITORING  INFORMATION SYSTEM  PLANNING  MONITORING  CONTROLLING

THANK YOU FOR YOUR ATTENTION!

ADULT EDUCATION INSIDE THE SCHOOL SYSTEM ???? MINISTRY EDUCATION AND CULTURE Level of central and regional management National Institute of Vocational Education and Training ALAPKEZELŐ IGAZGATÓSÁG ( ) Szakmacsopor tos OKJ bizottság National Council of Adult Education National Council of Reconciliation Professional bodies of OKJ Registered adult training companies 9 regional training centres Accredited adult training companies and higher educational institutions Vocational schools Level of educators Level of bodies