Many companies want to improve their teams’ language skills, but the budget is usually a barrier. This is where subsidised training through FUNDAE comes in. The process does raise questions, though: what can be subsidised, how is it managed, which mistakes should you avoid?
In this guide you will find a clear step-by-step process for applying the subsidy to language training and making the most of this resource from HR or management.
What is subsidised language training through FUNDAE?
The Fundación Estatal para la Formación en el Empleo (FUNDAE), the Spanish state foundation for workplace training, allows companies to recover part of their training investment through allowances on their social security contributions.
In the case of languages, this is especially useful for companies with international teams, sales departments or roles that require constant communication with foreign customers or partners.
It is not a direct grant, but an annual credit that each company can use depending on its size and its previous contributions.
What kind of language training can be subsidised?
Not all training is automatically eligible. For a language programme to qualify under FUNDAE, it has to meet certain requirements:
- Be related to the company’s activity or to the employee’s role
- Have clear learning objectives
- Include follow-up and attendance records
- Be delivered by a provider that meets the formal requirements
For example, English classes for the international sales team or French training for customer service in French-speaking markets usually fit perfectly.
If you are weighing up which format suits your team best, it is worth comparing the options before deciding. For instance, this analysis of English training for employees: the differences between a language academy, an online platform and in-company training can help you approach the decision on practical grounds.
Step by step: how to subsidise language training
1. Calculate the credit available
Every company has an annual training credit. It depends on the previous year’s contributions and on the number of employees.
This figure can be consulted directly in the FUNDAE application.
2. Identify the training needs
Before launching any training, it is essential to define:
- Which departments need languages
- What level the employees are at
- What objectives you are pursuing (negotiation, customer service, presentations, etc.)
This step avoids investing in programmes that are poorly aligned with the reality of the business.
3. Choose a specialist provider
Not all providers manage the subsidy correctly. It is advisable to work with academies that:
- Know the FUNDAE process
- Offer training tailored to companies
- Help with the paperwork
Personalisation is also key. Training a technical team is not the same as training a sales team.
4. Notify the start of the training
Before the course begins, you are required to inform FUNDAE through its platform.
Details to be provided include:
- Dates
- Participants
- Format (online, in-person, virtual classroom)
If this step is not done correctly, the training will not be eligible for the subsidy.
5. Deliver the training and follow it up
During the training it is essential to:
- Record attendance
- Assess progress
- Keep the documentation
In language training, this usually includes reports on level, progress and participation.
6. Apply the subsidy
Once the training has finished and been properly justified, the company can apply the allowance to its social security payments.
This is the point at which the investment is actually recovered.
Common mistakes when managing FUNDAE for languages
HR teams frequently run into problems that cost them the subsidy:
- Not notifying the course in time
- Lack of attendance records
- Training poorly justified in relation to the role
- Incomplete documentation
Another common mistake is focusing only on the subsidy and not on the quality of the programme. Poorly designed training, even if subsidised, brings no real value.
Why bring FUNDAE into your HR strategy?
Subsidised training should not be seen as a one-off action, but as part of a talent development strategy.
Bringing languages into the training plan makes it possible to:
- Improve the team’s competitiveness
- Support international expansion
- Increase talent retention
It also optimises the budget, since it makes use of a resource the company already has available.
When a company works with multicultural teams or international profiles, language also influences integration and internal communication. On that note, this article on the things that surprise foreigners when they work in Spain complements the discussion nicely from an HR point of view.
Frequently asked questions
Yes, every company that pays vocational training contributions has an annual credit. The amount varies according to size and contributions.
Yes, as long as it meets the FUNDAE requirements and allows for follow-up, attendance control and assessment.
The credit cannot be carried over. If it is not used within the year, it is lost.
Language training through FUNDAE is a clear opportunity to improve your team’s language skills without increasing the real cost. The key is managing the process properly and choosing a provider that understands both training and the business context.
If you are considering introducing or improving language training in your company, at ALOS we can help you design a programme tailored to your objectives and manage the subsidy correctly. Get in touch and we will advise you with no obligation.