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What are competence funds?
In Denmark, there are over 100 different competence funds. They are all created through collective agreement negotiations between employers' associations (e.g., DI, Dansk Erhverv) and trade unions (e.g., 3F, HK, Metal).
The agreement is simple: The employer pays a fixed amount per employee into the fund every year (typically via ATP contributions). In return, both the company and the employee can apply to have continuing education expenses covered by the fund.
How much money are we talking about?
It depends on the specific collective agreement, but the support is often massive. Unlike VEU compensation (which only covers a percentage of the highest unemployment benefit rate), competence funds can cover the remaining loss, keeping the company completely indemnified.
Example: 5-day IT course for an HK employee
Typically, a competence fund covers:
- Course fee: Fully or partially. Some funds only cover AMU, others cover expensive private courses (e.g., academy or diploma modules, IT certifications).
- Wage compensation: When you pay full salary during the course, the fund refunds the difference between VEU compensation and actual salary (up to a certain cap, typically 85-100%).
- Transport and accommodation: Coverage of driving, bridge tolls, or hotel if the course is far away.
What can the money be used for?
It depends on your industry's fund, but generally, the palette is much broader than most think. It is not just statutory certificates (like forklift or hygiene certificates).
Many funds (like HK's funds or the Industry's Competence Fund) cover IT courses. This can be anything from advanced Excel and PowerBI to project management (Agile, Scrum, Prince2) and digital marketing.
Employees stepping into middle management roles can get academy educations in leadership, conflict management, or communication covered.
Several funds have created special pools with extra high coverage if the course is about green transition, ESG reporting, sustainable production, or waste management.
Export companies can often get courses in Business English or cultural understanding covered when entering new markets.
Who can get support?
The basic rule is: If the employee is employed under a collective agreement that has an associated competence fund, there is money to be claimed.
The biggest funds include:
- IKUF (Industriens Kompetenceudviklingsfond): For companies under the Industry Agreement (DI and CO-industri). One of the absolute biggest funds in the country.
- HK Kompetencefonde: Covers office workers, IT employees, and trade/logistics (Dansk Erhverv/DI and HK).
- Bygge- og Anlægsbranchens Udviklingsfond: For craftsmen under Dansk Byggeri and 3F.
- Den Kommunale / Regionale Kompetencefond: For public sector employees.
The big trap: Why the money gathers dust
Every year, hundreds of millions (some years over a billion) are left behind in the funds. Why? Because the process is disconnected within companies.
The solution is to create an internal policy: No courses may be booked until it has been checked if they can be covered by a competence fund.
How to apply (step-by-step)
The application process varies slightly from fund to fund, but almost always takes place digitally and requires approval from both the employee and the employer.
Step 1: Check your collective agreement
Look at the employee's employment contract. Which collective agreement are they employed under? Find the corresponding fund (e.g., via pension.dk, PensionDanmark, or the fund's own website).
Step 2: Find the course on the fund's positive list
Most funds have a "Positive list". It is a long list of pre-approved courses. If the course is on it, it's easy. If not, some funds allow you to apply for "company-chosen" or "self-chosen" education outside the list.
Step 3: Apply BEFORE the course starts
Important rule: In most funds, the application MUST be submitted and approved before the first day of the course. If you do it afterwards, you will be rejected.
Step 4: Consent from both parties
Typically, the employer starts the application digitally, after which the employee receives a link in e-Boks/MitID where they must approve. Or vice versa.
Step 5: Complete and get paid
When the course is passed, the course provider sends the certificate (or you upload it), and the money is paid out to the company's NemKonto.
Frequently asked questions about Competence Funds
No, not at all! HK has massive funds for office, IT, sales, and administration. Architects, consultants, the financial sector, and construction also have their own funds. Check your collective agreement.
Yes, the vast majority of funds have updated their rules and now fully cover approved digital courses, as long as they conclude with a certificate and are held during working hours.
Then you don't pay into a competence fund, and therefore cannot get private course fees covered via this route. But you can still use the state's VEU compensation and SVU (State Adult Education Support) for AMU and academy educations.
No. The courses must be competence-building and professionally relevant to the employee's function or future career. Team building, wellness, and pure "fun trips" are not covered.
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