Employers may contribute €200m extra to training fund

Employers could see the amount they contribute to a national training fund almost double by 2020 in a Government plan to raise an extra €200m a year for third-level education.

The National Training Fund (NTF) is raised through a levy on employers, which is paid as part of employers’ PRSI. While they currently pay the equivalent of 0.7% of most employee’s earnings into the fund, proposals launched today by two government ministers would see that rise by 0.1% a year between 2018 and 2020.

The NTF levy increase was flagged in Budget 2017 last October but the details of a proposed increase to 1% and the timeframe are only being announced by Education Minister Richard Bruton and Public Expenditure Minister Paschal Donohoe this morning, as they invite responses from industry and the public.