In all education and training programmes, employment in an enterprise on the basis of a contract and with a salary makes up the main part of the programme. Thus students are ensured not only actual work experience, but also financial independence and geographic mobility.

The apprentice’s salary is paid by the enterprise providing the work placement for practical training, and is determined by general collective agreements of the labour market for the individual trades and industries. The salary is approximately 40 per cent of that of a fully skilled or qualified worker or approximately DKK 6,000 - 7,000 a month. Apprentices receive a salary from the day they start their practical training and until the training is finished, i.e. also during included college-based periods. During the apprentices’ college-based training, private enterprises are reimbursed 90 per cent of their expenses for payment by the Employers’ Reimbursement System (AER).

Most students choose to start their education with college-based training before they enter into a training contract with an enterprise. These students are often entitled to support through the Danish State Education Grant and Loan Scheme during the introductory college-based training.

The Danish State Education Grant and Loan Scheme (SU) is administered by a special authority under the Ministry of Education. Education grants and loans may be applied for by everybody aged 18 and over attending a full-time qualifying education and training programme. The entitlement to public educational grants stops when students enter into paid practical training. Grants are paid partly as scholarships and partly as student loans. In 1996 the monthly maximum scholarships amounted to DKK 3,551 and the monthly maximum student loan to DKK 1,846.

The Employers’ Reimbursement System (AER)
The Employers’ Reimbursement System, AER, was introduced by legislation in 1977 and is a self-governing institution with equal representation from the central labour market organizations. AER’s main object is to provide incentives for private enterprises to create apprenticeships.

The activities of AER are financed by compulsory employers’ contributions fixed on the basis of the number of employees of the individual enterprise. Enterprises having apprentices are entitled to reimbursement of 90 per cent of their payroll costs for apprentices attending college-based training. Apprentices domiciled more than 20 kilometres from the place of practical training or college are entitled to reimbursement of 80 per cent of their travelling costs. During times of shortage of apprenticeships, the number of apprenticeships may be increased by financial support from AER.