The Department of Education and Skills and the Department of Public Expenditure and Reform have launched the long-awaited formal consultation with employers and industry on increasing the employer contribution to the national training fund.
The consultation follows from the commitment given in Budget 2017 ( October 2016) to consult with employers and industry on the design of “Employer-Exchequer Investment Mechanism” to financially support higher and further education to meet the future skills needs in the economy over the coming years based on the recommendations of the Expert Group on the Future of Higher Education.
Employers are currently required to contribute to training initiatives through a levy of 0.7% of reckonable earnings in respect of the majority of employees. The National Training Fund is used to provide skills training for people in-employment and seeking employment.
The Government has now proposed an incremental annual increase of 0.1% in the National Training Fund levy to increase it from 0.7% to 1% in the three year period to 2020.
It is well recognised that the Irish Higher education system coped with a difficult and constrained funding environment in recent years. Irish business and industry are significant contributors to higher and further education institutions through research and innovation programmes, consultancy projects, programme review and work placement opportunities.
The Ibec submission to the consultation provides a very considered and comprehensive view from the Irish business community to this proposal.
For further information please contact:
Tony Donohoe / Claire McGee
Tel: Phone: +353 1 605 1500