Republic of Latvia Cabinet Regulation No. 413 Adopted 25 June 2024

Regulations Regarding the Implementation of the First Round of Activity 4.2.4.1 "Support for Sector-Based Adult Learning" of Specific Objective 4.2.4 "Promoting Lifelong Learning, in Particular Offering Flexible Upskilling and Reskilling Opportunities for All, Taking into Account Entrepreneurial and Digital Skills, Better Anticipating Change and New Skills Needs Based on Labour Market Needs, Facilitating Career Transitions and Promoting Professional Mobility" of Priority Direction 4.2 "Education, Skills and Lifelong Learning" of the European Union's Cohesion Policy Programme for 2021-2027

Issued pursuant to
Section 19, Clauses 6 and 13
of the Law on Management of European Union Funds
for the 2021-2027 Programming Period

I. General Provisions

1. The Regulation prescribes:

1.1. the procedures for implementing the selection of project applications of the first round of Activity 4.2.4.1 "Support for Sector-Based Adult Learning" of Specific Objective 4.2.4 "Promoting Lifelong Learning, in Particular Offering Flexible Upskilling and Reskilling Opportunities for All, Taking into Account Entrepreneurial and Digital Skills, Better Anticipating Change and New Skills Needs Based on Labour Market Needs, Facilitating Career Transitions and Promoting Professional Mobility" of the European Union's Cohesion Policy Programme for 2021-2027 (hereinafter - the Activity);

1.2. the funding planned and available for the first round of the Activity;

1.3. the objective and the target group of the first round of the Activity;

1.4. the requirements for the applicant of a project of the European Social Fund Plus (hereinafter - the project);

1.5. the conditions for the aided activities and for the eligibility of costs;

1.6. the conditions for granting the aid for commercial activity;

1.7. the conditions and procedures for the application of simplified costs.

2. The following terms are used in the Regulation:

2.1. training - employer needs-based training organised within the scope of formal or informal education and also other training activities in on-site, online, or hybrid form which provide employees of the entrepreneur with an opportunity to acquire or improve the necessary skills or qualification;

2.2. employer - the final beneficiary who, on the date of granting the aid, according to the information available in the database of tax (fee) debtors administered by the State Revenue Service, has no tax or fee debts, including debts of mandatory State social insurance contributions, the total amount of which exceeds EUR 150, and who is an entrepreneur registered in the Enterprise Register of the Republic of Latvia, conforming to the status of a micro, small, or medium-sized enterprise in accordance with Article 2(2) of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (hereinafter - Commission Regulation No 651/2014), or the status of a large enterprise in accordance with Article 2(24) of Commission Regulation No 651/2014 (including those registered in a branch of a foreign entrepreneur registered in the Republic of Latvia), or a self-employed person;

2.3. employee - a self-employed person or a person employed by the employer who has attained the age of 18 years and has entered into an employment contract with the employer;

2.4. beneficiary - the project applicant which is an association in accordance with Paragraph 13 of this Regulation and whose project application has been approved by the co-operation institution;

2.5. training provider - a legal or natural person that ensures the provision of the training service. This may be the beneficiary itself or a training provider selected on the basis of a procurement contract.

[17 June 2025]

3. The objective of the first round of the Activity is to provide support for the acquisition of qualifications, reskilling, acquisition of skills, or upskilling of employees of the employer in order to promote increased productivity of workforce.

4. The target group of the first round of the Activity shall be employees of the entrepreneur.

5. The total eligible funding available within the first round of the Activity shall be EUR 12 192 295, including the European Social Fund Plus funding of EUR 10 363 449 and State budget co-funding of EUR 1 828 846. The maximum amount of the European Social Fund Plus funding shall not exceed 85 % of the total eligible public funding of the project, and the national co-funding shall not be less than 15 % of the total eligible public funding planned for the project.

[17 June 2025]

6. Aid within the first round of the Activity shall be provided to the employer in the training areas referred to in Annex 1 to this Regulation.

7. The functions of the responsible institution within the first round of the Activity shall be performed by the Ministry of Economics.

8. The minimum funding available for one project application in the first round of the Activity shall be EUR 500 000 (including the European Social Fund Plus funding - EUR 425 000 and State budget co-funding - EUR 75 000), while the maximum funding shall be EUR 939 931 (including the European Social Fund Plus funding - EUR 798 941 and State budget co-funding - EUR 140 990).

[17 June 2025]

9. [17 June 2025]

10. The following output indicators shall be achieved within the first round of the Activity:

10.1. by 31 December 2029, the number of employed persons, including self-employed persons - 1000;

10.2. national indicator by 31 December 2029: the number of non-unique entrepreneurs supported with grants - 389.

[17 June 2025]

11. Aid within the first round of the Activity shall be provided to the beneficiary in the form of a grant in accordance with the de minimis aid conditions in accordance with Commission Regulation (EU) 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (hereinafter - Commission Regulation 2023/2831), while for the employer - in the form of non-financial aid (the amount of the aid shall be expressed in financial terms equivalent to a grant before granting of the aid) or in the form of a grant in accordance with Commission Regulation 2023/2831.

[17 June 2025]

12. The first round of the Activity shall be implemented in the form of open selection of project applications. The selection of project applications shall be organised by the co-operation institution. If any funding remains after the first round of the Activity, the responsible institution shall decide on further use of the remaining funding.

II. Requirements for the Project Applicant Within the First Round of the Activity

13. The project applicant shall be an association that meets the following conditions:

13.1. it is registered in the Register of Associations and Foundations of the Enterprise Register of the Republic of Latvia;

13.2. it represents at least one of the sectors or sub-sectors referred to in Annex 1 to this Regulation;

13.3. the total turnover of its members registered in Latvia and their members in the last closed reporting year exceeds EUR 150 million;

13.4. the total export volume of its members registered in Latvia and their members in the last closed reporting year is at least EUR 75 million;

13.5. on the day of submission of the project application and on the day of submission of the updated project application, according to the information available in the database of tax (fee) debtors administered by the State Revenue Service, it has no tax or fee debts, including debts of mandatory State social insurance contributions, the total amount of which exceeds EUR 150, except for tax payments for which the payment term has been extended, divided in instalments, deferred, or divided in instalments repeatedly in accordance with Section 24, Paragraphs one, 1.³, and 1.⁷ of the law On Taxes and Fees;

13.6. it meets the conditions for the aid for commercial activity arising from Commission Regulation 2023/2831;

13.7. it has experience in the implementation of upskilling projects and competence upgrading activities for sector specialists where the total eligible project value is from EUR 250 000 to EUR 499 999, if the achievement of indicators is at least 100 % or at least 2000 trained sector specialists within a three-year period.

14. Indicators in the project application shall be planned in proportion to the European Social Fund Plus and State budget co-funding. If the project application is submitted for the maximum available funding of EUR 939 931, then the target indicator, i. e. the number of employees involved in training, shall be at least 92. If the project application is submitted for the minimum available funding of EUR 500 000, then the target indicator, i. e. the number of employees involved in training, shall be at least 49.

[17 June 2025]

15. The project applicant shall prepare the project application in accordance with the requirements laid down in the project application selection regulations and submit it in the Cohesion Policy Funds Management Information System (hereinafter - the Management Information System), accompanied by the following:

15.1. internal procedures for granting aid for commercial activity to the employer, including envisaging a condition that the aid shall be granted, as a priority, in regions with lower gross domestic product;

15.2. a reference to the identification number of the form created and approved in the de minimis system;

15.3. a declaration that an appropriate internal control system will be developed in conformity with Sub-paragraph 33.19 of this Regulation.

16. The project applicant may submit only one project application in any of the sectors or sub-sectors referred to in Annex 1 to this Regulation.

17. Two project applications may be supported in each sector or sub-sector referred to in Annex 1 to this Regulation.

III. Conditions for the Aided Activities and for the Eligibility of Costs within the First Round of the Activity

18. Within the first round of the Activity, the aided activities of the beneficiary shall be as follows:

18.1. the project management and ensuring of the implementation of training, including the organisation of procurements;

18.2. ensuring of the communication and visual identity measures in conformity with the principle of non-discrimination.

19. The training provider shall engage a tutor who corresponds to at least one of the following requirements:

19.1. has at least three-year work experience in the sector in which employees will be trained or at least three-year experience in the provision of training in the sector in which employees will be trained;

19.2. the qualification of the tutor in the sector of training is not lower than the qualification to be obtained by employees upon completion of the training.

20. The training provider may also engage tutors from abroad, provided that they correspond to the requirements referred to in Paragraph 19 of this Regulation.

21. Direct eligible costs that are measurable, commensurate, justified, and conform to the principles of sound financial management shall be eligible within the scope of the project:

21.1. in respect of the beneficiary, the costs shall include:

21.1.1. costs of information events and organisation thereof in order to motivate employers to develop skills; These costs may also include coffee break costs, if the information event is planned to last at least three hours;

21.1.2. project management costs:

21.1.2.1. costs of the project management and project implementation staff;

21.1.2.2. acquisition costs of equipment (office furniture and equipment, computer software and licences) necessary for the creation of new working places or, in cases where the equipment of the existing working places has depreciated and is being written off, not exceeding EUR 3000 per working place for the entire duration of project implementation. If the staff is employed for regular working hours, the acquisition costs of the working place equipment shall be eligible in the amount of 100 %. If the staff is employed for part-time working hours or the principle of part-time eligibility is applied to the remuneration of the staff, the costs of the working place equipment shall be eligible in proportion to the distribution in percentage of the load. In turn, the involvement period of the employee in the project versus the total duration of implementation shall be taken into account in case of the principle of part-time eligibility;

21.1.2.3. costs of communication and visual identity measures in accordance with Articles 47 and 50 of Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (hereinafter - Regulation 2021/1060), the procedures by which the authorities involved in the management of European Union funds ensure the implementation of these funds in the 2021-2027 programming period, and also the communication and design guidelines for European Union funds for the 2021-2027 programming period and the Recovery Fund. The costs referred to in this Paragraph shall not be subject to the conditions for the aid for commercial activity;

21.1.2.4. costs of official travels;

21.2. in respect of the employer, the costs shall include a fee for materials and services directly related to the training:

21.2.1. accommodation and travel (transport) costs of the employees of the employer if the training takes place abroad;

21.2.2. costs of training materials to be used for training (printed or audio-visual materials which, after the end of training, remain in the ownership of employees within the project);

21.2.3. rental costs of the premises and equipment to be used for training for the period of training;

21.2.4. training costs for the employees of the employer, including certification or examination costs;

21.2.5. costs of interpreting services, including costs of an official travel of an interpreter, if applicable;

21.2.6. costs of sign language interpreters, real-time transcription and subtitling services;

21.2.7. total remuneration of tutors for working hours not exceeding the duration of the training (including the mandatory State social insurance contributions of the employer);

21.2.8. travel (transport) costs of tutors;

21.2.9. costs of training-related consultancy work and services related to the organisation of training, including rental costs of the premises and equipment to be used for the period of training.

[17 June 2025]

22. Direct eligible project management and project implementation staff costs shall be planned in the project application as a single cost item in accordance with Article 55(1) of Regulation 2021/1060, applying the flat rate of 20 % of the direct eligible costs referred to in Paragraph 21 of this Regulation that are not the direct eligible staff costs referred to in Sub-paragraph 21.1.2.1 of this Regulation.

[16 July 2024]

23. The beneficiary shall plan the indirect eligible costs as a single cost item, applying the flat rate of indirect costs in the amount of 15 % of the direct eligible staff costs referred to in Sub-paragraph 21.1.2.1 of this Regulation in accordance with Article 54(1)(b) of Regulation No 2021/1060.

24. Costs shall not be eligible for the following types of training and programmes within the scope of the project:

24.1. training in higher education study programmes;

24.2. training referred to in Article 31(2) of Commission Regulation No 651/2014;

24.3. courses for vehicle operators for obtaining categories A1, A, B1, and M;

24.4. training in fields not included in Annex 2 to this Regulation.

25. Costs of the information events referred to in Sub-paragraph 21.1.1 of this Regulation shall not exceed 15 % of the total costs approved in the project application.

26. The project management referred to in Sub-paragraph 21.1.2 of this Regulation may be carried out:

26.1. by employees of the beneficiary, including also the mandatory State social insurance contributions of the employer in the remuneration;

26.2. in the form of an outsourced service, on the basis of a work performance or service contract, attracting a project manager, including also the mandatory State social insurance contributions of the employer in the remuneration. The rate of remuneration per working hour shall not be indicated in the work performance or service contract, instead the result to be achieved shall be indicated;

26.3. in the form of an outsourced service or on the basis of a work performance contract, attracting a service provider.

27. In accordance with the conditions of Article 64(1)(c) of Regulation 2021/1060, the value added tax on direct eligible costs shall be eligible within the scope of the aided activities within the first round of the Activity if it cannot be recovered in accordance with the laws and regulations in the field of tax policy.

28. The following items of costs shall not be eligible within the first round of the Activity:

28.1. costs which have not been specified as eligible in Paragraph 21 of this Regulation or exceed restrictions on the amount of costs;

28.2. taxes, including value added tax, customs duties, fees, and fines, except for the cases referred to in Sub-paragraph 21.2 and Paragraph 27 of this Regulation. If such costs have been incurred, they shall be covered by the beneficiary and the employers;

28.3. costs of the Activity that are not directly related to the activities carried out within the project, are not measurable, commensurate, justified by documents supporting the expenditures and in respect of which the principles of economy, efficiency, and effectiveness have not been complied with.

29. For the beneficiary, costs and the start of activities shall be eligible from the moment the project application has been submitted in the Management Information System. For the employer, costs shall be eligible from the moment the employer has submitted an application to the beneficiary.

[17 June 2025]

30. If the beneficiary has started aided activities before entering into the contract for project implementation with the co-operation institution, it shall assume all risks related to the commitments undertaken and the risk of ineligibility of expenditure. Completed activities shall not be included in the project application, and no funding shall be granted for them. If the employer has started activities before submission of the application to the beneficiary, the application of the employer shall be rejected.

31. Unforeseen expenses shall be considered additional expenses or price increase that has occurred during project implementation, and the beneficiary and the employer shall cover them using their own funds free of aid for commercial activity.

32. The beneficiary and the employer shall apply the methodology developed by the Focal Point "Methodology for the Calculation and Application of the Standard Rate of Unit Costs for the Costs of Domestic Official Trips for the Implementation of the Operational Programme "Growth and Employment" and the European Union's Cohesion Policy Programme for 2021-2027" to all activities referred to in Sub-paragraphs 21.1 and 21.2 of this Regulation for which costs for domestic official travels are intended. Costs of a foreign business trip shall be covered for the project management staff.

IV. Conditions for the Implementation of the Project and Receipt of the Funding

33. Obligations of the beneficiary within the first round of the Activity:

33.1. to assess the amount of aid granted to the employer;

33.2. to accumulate at least the following data in the Management Information System, updating the data not less than twice a year or submitting them to the responsible institution within 10 working days upon request:

33.2.1. information on the employer employing the employee involved in the training (name, registration number, sector represented by the employer according to NACE Rev. 2.1, status of the entrepreneur, field specified in the Strategy for Smart Specialisation);

33.2.2. the number of employees involved in the training, broken down by gender and age (given name, surname, personal identity number, age, gender, name of the activity or training, start and end date of training, position of the employee);

33.2.3. the level of education and occupation of the employee involved in the training in accordance with the Classification of Occupations;

33.2.4. information on the training provided within the scope of this Regulation (name and brief description of the training in accordance with the fields referred to in Annex 2 to this Regulation, objective and target group of the training, training time and duration, type of training - in-person, online, or hybrid format, place of training, training provider and tutor, training costs);

33.2.5. a summary of evaluations provided by employees involved in the training regarding the quality of the training;

33.2.6. the number of employees involved in the training by training fields - supported non-unique employers and non-unique employees, including self-employed persons involved in the training;

33.3. to accumulate, record, and submit to the co-operation institution aggregated data on the persons referred to in Sub-paragraph 10.1 of this Regulation in accordance with Annex I to Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus (ESF+) and repealing Regulation (EU) No 1296/2013, and the laws and regulations governing the verification of European Union fund projects for the 2021-2027 programming period;

33.4. to carry out the procurement of goods and services necessary for the implementation of the Activity in accordance with the laws and regulations in the field of public procurement, implementing an open, transparent, non-discriminating procedure not restrictive of competition, and considering the possibility of conducting socially responsible procurement;

33.5. to assess the economic justification of the training costs referred to in Paragraph 21 of this Regulation (including conformity with the market prices) and the usefulness of the training;

33.6. to update information on the course of project implementation on its website as soon as it becomes available, but at least once every three months;

33.7. to submit, together with the payment request, to the co-operation institution a signature sheet for the participation of the employees of employers in the in-person or hybrid training;

33.8. to submit an electronic print-out from the application program if the training is provided online or in hybrid format;

33.9. to send electronically information to the employer on the taken decisions on aid for commercial activity;

33.10. to retain in the project record-keeping the applications submitted by the employer, the taken decisions on aid, and the information sent to the employer;

33.11. in the case of approval of a training application, to verify whether the employer has provided a declaration of the absence of double funding prior to approval of the application;

33.12. to verify and prevent risks of a conflict of interest, corruption, and fraud prior to examining the application of the employer, and also to ensure, during the implementation of activities of the employer, documentation of inspections and signing of a declaration of the absence of a conflict of interest, eliminating the identified risks or established conflict of interest, where necessary. The declaration shall be stored in accordance with Article 133 of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast) (hereinafter - Commission Regulation 2024/2509);

33.13. to grant aid for commercial activity to the employer in accordance with the procedures laid down in Chapter VI of this Regulation;

33.14. to submit in the Management Information System the planned schedule for the submission of the payment request, envisaging that payment requests will be submitted not more frequently than once per quarter;

33.15. to carry out and document inspections at the level of the employer, retaining evidence and justification of the evaluation conducted, including:

33.15.1. regarding the compliance with the conditions for the aid for commercial activity and also verifying that the trainee is an employee of the employer;

33.15.2. regarding the prevention of the risks of a conflict of interest, fraud, corruption, and also double funding;

33.15.3. regarding the documentation supporting the achieved indicators and objectives and data reliability;

33.16. upon request of the responsible institution or the co-operation institution, to provide information and supporting documents on the progress of project implementation;

33.17. to ensure adherence to the principle of "do no significant harm" in the provision of aid for commercial activity so that the aided activity included in the application of the employer has a negligible or no foreseeable impact on all environmental objectives, evaluating both direct and primary indirect consequences throughout the life cycle;

33.18. to sign a declaration of impartiality, confidentiality, and absence of a conflict of interest (Annex 3). This obligation shall apply to all persons involved in the decision-making process regarding the granting of aid for commercial activity to the employer. The declaration shall be signed prior to the examination of the application. The declaration shall be stored in accordance with Article 133 of Commission Regulation 2024/2509;

33.19. to submit to the co-operation institution, not later than by the first payment request, a description of the internal control system for preventing the risk of corruption and a conflict of interest, including the following therein:

33.19.1. a description of how measures will be taken to control the risk of a conflict of interest in accordance with Article 61 of Commission Regulation 2024/2509;

33.19.2. a description of measures for the risk control of a prohibited agreement;

33.19.3. a description of measures for the prevention of fraud and corruption risks;

33.19.4. a description of the procedure for the identification and prevention of double funding, including from other financial instruments, such as the European Union's Cohesion Policy Programme for 2021-2027 and the Operational Programme "Growth and Employment" of the European Union Structural Funds and the Cohesion Fund for the 2014-2020 Programming Period, and other foreign financial instruments;

33.19.5. a description of how employees should act if they wish to report potential violations (including possible corporate activities), covering measures to ensure the anonymity and protection of the reporter;

33.19.6. the code of ethics;

33.19.7. a reporting mechanism for the competent authorities on potential administrative or criminal offences;

33.19.8. a description of the measures of internal circulation of information and communication for the prevention of the risks of a conflict of interest, fraud, and corruption;

33.20. to ensure that the employer submits a declaration that internal procedures have been developed providing for the right of an employee to apply for training in order to improve skills for the performance of duties;

33.21. to ascertain that the training provider can provide training that ensures achievement of the objectives of the Activity, that it has sufficient capacity, and that the training content corresponds to the training needs of employers;

33.22. to enter into an agreement with the employer on the involvement of its employees in the training;

33.23. to ensure communication and visual identity requirements in accordance with Articles 47 and 50 of Regulation 2021/1060 and the laws and regulations establishing the procedures by which the authorities involved in the management of European Union funds ensure implementation of such funds in the 2021-2027 programming period;

33.24. to ensure, within the scope of the aided activities specified in this Regulation, general and specific activities for the implementation of the horizontal principle "Equality, inclusion, non-discrimination and respect for fundamental rights", and also collection and reporting of indicators, including in respect of the provision of a sign language interpreter, easy-to-read language translation, real-time transcription, subtitling, and environmental accessibility;

33.25. to ascertain that the employer is not subject to the exclusion conditions laid down in Section 22 of the Law on Management of European Union Funds for the 2021-2027 Programming Period;

33.26. if an employee of the entrepreneur plans to participate in training within the second round of Activity 4.2.4.1, to submit a declaration that, within the first round of the Activity, no aid is provided for its employee for training that is intended to be undertaken within the scope of the second round of Activity 4.2.4.1 "Support for Sector-Based Adult Learning".

[17 June 2025; 4 November 2025]

33.¹ In order to comply with the requirement referred to in Sub-paragraph 33.25 of this Regulation, the beneficiary shall apply to the Information Centre of the Ministry of the Interior. The Centre shall issue electronically (online) and free of charge a certificate from the Punishment Register.

[4 November 2025]

33.² If the beneficiary has not received the certificate from the Punishment Register in accordance with Paragraph 33.¹ of this Regulation, for the purpose of complying with the requirement referred to in Sub-paragraph 33.25 of this Regulation, the beneficiary shall request from the employer a declaration that it is not subject to the exclusion conditions laid down in Section 22 of the Law on Management of European Union Funds for the 2021-2027 Programming Period.

[4 November 2025]

34. If it is not possible to determine the market price for the training, since there is no comparable training, the beneficiary shall explain to the co-operation institution how this training is different from the available training and what the economic feasibility and usefulness of the training are, justifying the need for the particular training for the employer whose employees will be trained.

35. The beneficiary shall meet the following conditions during project implementation:

35.1. the place for project implementation shall be the Republic of Latvia;

35.2. training may take place both within the territory of the Republic of Latvia and abroad.

36. The co-operation institution has the following obligations:

36.1. during project implementation, to ensure inspections in order to prevent corruption, fraud, a conflict of interest, and double funding in respect of the persons involved in the decision-making process;

36.2. to examine and agree on the internal control system of the beneficiary;

36.3. in the case referred to in Sub-paragraph 33.2 of this Regulation, to perform, once a year, random inspections in order to verify whether the employers are not subject to the exclusion conditions referred to in Sub-paragraph 33.25 of this Regulation.

[4 November 2025]

V. Conditions Related to the Granting of Aid if Aid for Commercial Activity is Granted to the Beneficiary

37. Within the first round of the Activity, the beneficiary may implement the project until 31 December 2029.

38. The co-operation institution shall assess the compliance of the beneficiary with Commission Regulation 2023/2831 and take the decision to grant the aid for commercial activity. The moment of granting aid shall be considered the moment when the co-operation institution has taken the decision to grant aid for commercial activity to the beneficiary.

39. For the beneficiary at the level of a single undertaking, the intensity for covering the costs referred to in Sub-paragraphs 21.1.1 and 21.1.2 of this Regulation shall be 100 %, without exceeding the restrictions referred to in Paragraphs 25 and 28 of this Regulation.

40. The costs referred to in Sub-paragraph 21.1 of this Regulation shall be covered for the beneficiary in accordance with Commission Regulation 2023/2831 and the laws and regulations regarding the procedures for the accounting and granting of the de minimis aid, and it shall be considered aid for commercial activity to the beneficiary. The co-operation institution shall, in accordance with Paragraph 52 of this Regulation, assess the conformity of the beneficiary with the de minimis aid conditions as at the moment of granting aid for commercial activity.

[16 July 2024]

41. Aid for covering the outsourced service costs referred to in Sub-paragraphs 21.1.2.1 and 21.1.2.3 of this Regulation shall not be considered aid for commercial activity if the beneficiary ensures the project management, applying the condition referred to in Sub-paragraphs 26.2 and 26.3 of this Regulation. If the beneficiary ensures the project management, the coverage of these costs shall be considered aid for commercial activity to the beneficiary.

[17 June 2025]

42. If the amount of funding actually used in the project after approval of the final report is less than that initially planned, the beneficiary shall ensure that the indicators actually achieved (number of employers and employees) are not lower than the indicators planned in the project application, as adjusted according to the actual use.

43. Disputes that arise for the beneficiary during project implementation after entering into the contract with the employer shall be resolved in accordance with the civil law procedures.

44. An advance payment may be received within the first round of the Activity in accordance with the laws and regulations regarding the procedures for planning State budget funds for the implementation of projects of the European Union funds and making payments for the 2021-2027 programming period, taking into account the following conditions:

44.1. the payment shall not exceed 30 % of the public funding granted to the project;

44.2. in order to receive an advance payment, the beneficiary shall submit an advance request and a justification for the planned advance amount in the Management Information System.

VI. Conditions Related to the Granting of Aid if Aid for Commercial Activity is Granted to the Employer

45. The employer shall be eligible for the aid if the employee complies with the following conditions:

45.1. the employee has attended at least 75 % of the training;

45.2. the employee has passed the relevant tests planned at the end of the training, where applicable.

46. The employer shall, together with the project application, submit a declaration that it has established an internal procedure providing for the right of an employee to apply for training in order to improve skills for the performance of duties.

47. The beneficiary shall assess the compliance of the employer with Commission Regulation 2023/2831 and take the decision to grant aid for commercial activity. The moment of granting aid shall be considered the moment when the beneficiary has taken the decision to grant aid for commercial activity to the employer.

48. The employer and the beneficiary, in conformity with Article 5(1), (2), and (3) of Commission Regulation 2023/2831, may cumulate de minimis aid with another de minimis aid up to the relevant threshold value specified in Article 3(2) of Commission Regulation 2023/2831, and also may cumulate with other State aid, including in respect of the same eligible costs or other State aid to the same risk funding activity, if such cumulation does not result in exceeding the relevant maximum aid intensity or the amount of aid which is specified in the State aid programme or a decision of the European Commission. The de minimis aid received within the scope of this Regulation may be cumulated with another de minimis aid for the same eligible costs if, after combining the aids, the relevant maximum aid intensity for a unit of aid or item of costs does not exceed 100 %. If the employer plans the cumulation of aid, it shall inform the provider of aid of this fact.

[17 June 2025]

49. If aid is granted for the same eligible costs of the project within the scope of several programmes for aid for commercial activity, the employer shall submit information to the beneficiary on the planned and granted aid for the same eligible costs, indicating the date of granting aid (including the planned date of granting aid), the aid intensity, the provider of aid, the aid measure or investment, and the planned or granted amount of aid.

50. The final beneficiary may contest the decision on non-compliance with the conditions for the aid for commercial activity by submitting a relevant submission to the beneficiary. The final beneficiary may appeal the decision of the beneficiary before a court.

51. The employer who is not a payer of the value added tax may attribute the costs of the value added tax.

52. The decision of the co-operation institution and the beneficiary to grant the de minimis aid in accordance with Article 7(3) and Article 8 of Commission Regulation 2023/2831 may be taken until the expiry of this Regulation.

53. The permissible aid intensity, when aid is received in accordance with Commission Regulation 2023/2831, shall not exceed the following:

53.1. for micro and small entrepreneurs - 70 %;

53.2. for medium-sized entrepreneurs - 60 %;

53.3. for large entrepreneurs - 50 %.

54. The relevant aid intensity referred to in Paragraph 53 of this Regulation shall be calculated on the basis of the total training project costs requested by the final beneficiary.

[17 June 2025]

55. If aid is granted to the employer in accordance with Commission Regulation 2023/2831, the employer shall, together with the application, submit a reference to the identification number of the form created and approved in the de minimis system.

VII. General Conditions Related to Receipt of Aid for Commercial Activity

56. If the conditions of Commission Regulation 2023/2831 are violated in respect of de minimis aid granted to the beneficiary or the employer in accordance with Commission Regulation 2023/2831, then the beneficiary has the obligation to repay to the co-operation institution, or the employer has the obligation to repay to the beneficiary, the unlawful de minimis aid received within the scope of the project, together with interest, using the funds that are free of aid for commercial activity, in accordance with the conditions of Chapter IV or V of the Law on Control of Aid for Commercial Activity.

57. The specified aid intensity shall be applied to costs without value added tax, except for the cases where it is not recoverable in accordance with the laws and regulations in the field of tax policy.

58. In accordance with Commission Regulation 2023/2831, the de minimis aid shall be granted to the beneficiary and the employer in conformity with the restrictions on sectors and activities referred to in Article 1(1) of Commission Regulation 2023/2831. If the employer or the beneficiary is concurrently operating in one or several sectors referred to in Article 1(1)(a), (b), (c), and (d) of Commission Regulation 2023/2831, aid may only be granted if the employer or the beneficiary ensures the operation of such sectors or the separation of accounting so that, in accordance with Article 1(2) of Commission Regulation 2023/2831, activities in the excluded sectors would not benefit from the de minimis aid which is granted in accordance with this Regulation.

[17 June 2025]

59. Prior to granting the de minimis aid, it shall be verified whether the planned de minimis aid, together with the de minimis aid granted in the previous three years from the day of granting the aid, does not exceed the maximum amount of the de minimis aid specified in Article 3(2) of Commission Regulation 2023/2831 at the level of a single undertaking. The amount of the de minimis aid shall be assessed at the level of a single undertaking in accordance with Article 2(2) of Commission Regulation 2023/2831.

60. Availability of information shall be ensured in the following manner:

60.1. the beneficiary shall ensure access to information on the activity of the beneficiary for 10 years from the day when the last aid for commercial activity has been granted to the beneficiary in accordance with this Regulation;

60.2. the employer shall ensure access to information for 10 years from the moment of granting aid for commercial activity in accordance with this Regulation;

60.3. the co-operation institution, as the provider of aid for commercial activity to the beneficiary, shall store the documentation for 10 years from the day when the co-operation institution has granted the last aid for commercial activity in accordance with this Regulation.

61. The responsible institution shall process the data referred to in Sub-paragraph 33.2 of this Regulation for analytical purposes and for supervising the fulfilment of the indicators referred to in Paragraph 10 of this Regulation.

Prime Minister E. Siliņa

Minister for Economics V. Valainis

 

Annex 1
Cabinet Regulation No. 413
25 June 2024

[17 June 2025]

Sectors to be Supported

Funding within the first round of the Activity shall be intended for associations representing entrepreneurs in the following sectors:

1. Manufacturing (according to Section C of NACE Rev. 2.1) and the following manufacturing sub-sectors:

1.1. timber industry;

1.2. machinery and metal processing;

1.3. manufacture of electrical and optical equipment;

1.4. chemical industry;

1.5. food and beverage production;

1.6. construction industry;

1.7. light industry;

1.8. paper production and printing.

2. Information and communication technology sector (restrictions shall be determined according to Section K of NACE Rev. 2.1).

3. Accommodation and food service activities (restrictions shall be determined according to Section I of NACE Rev. 2.1).

4. Financial and insurance activities (restrictions shall be determined according to Section L of NACE Rev. 2.1).

5. Professional, scientific and technical services (restrictions shall be determined according to Section N of NACE Rev. 2.1).

6. Administrative and support service activities (restrictions shall be determined according to Section O of NACE Rev. 2.1).

7. Energy supply and telecommunications (restrictions shall be determined according to Sections D and K of NACE Rev. 2.1).

 

Annex 2
Cabinet Regulation No. 413
25 June 2024

[17 June 2025]

Training Areas and Programme Sets to be Supported Within the Scope of the Project in Accordance with the Laws and Regulations Regarding the Classification of Education in Latvia

The following training areas and programme sets shall be supported in the selection round:

1. 214 Design¹.

2. 345 20 Project management².

3. 345 24 Production engineering and management.

4. 48 484 Programming.

5. 44 Physical sciences.

6. 46 Mathematics and statistics.

7. 48 482 Computer use³.

8. 48 483 Computer systems, databases, and computer networks.

9. 52 Engineering and technology.

10. 54 Manufacturing and processing.

11. 623 Forestry⁴.

12. 722 Health services⁵.

13. 811 Hotel and restaurant services⁵.

14. 840 04 International transport organisation⁵.

15. 85 Environmental health.

16. 22 227 Language studies and programmes.

17. 341 01 E-commerce.

18. 342 01 Marketing and trade.

19. 345 01 Business management.

20. 345 04 Quality assurance and management.

21. 345 15 Catering and hotel business⁶.

22. 345 16 Hotel management⁶.

23. 345 17 Tourism management⁶.

24. 812 Tourism and recreation organisation⁶.

25. 343 02 Financial management.

Notes.
¹ Only 214 01 Computer design, 214 02 Environmental design, 214 05 Wooden product design, 214 06 Textile product design, 214 07 Metal product design, 214 08 Ceramic product design, 214 09 Glass product design, 214 10 Leather product design, 214 11 Clothing design, 214 12 Multimedia design, 214 13 Photo design.
² The costs of this training may not exceed 40 % of the total eligible project costs.
³ Only for experts. The costs of this training may not exceed 40 % of the total eligible costs within the project.
⁴ Only training related to the smart specialisation strategy area "1. Knowledge-intensive bioeconomy".
⁵ Only training related to the smart specialisation strategy area "2. Biomedicine, medical technologies, biopharmaceuticals and biotechnology" (medical and health tourism).
⁶ Only in the accommodation and food service sector (also for those employed in sectors 55.1, 56.1, 56.2, 74.90, 77.39, 79.11, 79.12, 79.90, 82.30, 90.04, 93.21, and 93.29 of NACE Rev. 2.1).

 

Annex 3
Cabinet Regulation No. 413
25 June 2024

[17 June 2025]

Declaration of Impartiality, Confidentiality, and Absence of a Conflict of Interest

I, (given name, surname) hereby declare that I agree to participate in the evaluation of the first round applications or in the provision of aid to the employer within Activity 4.2.4.1 "Support for Sector-Based Adult Learning" of Specific Objective 4.2.4 "Promoting Lifelong Learning, in Particular Offering Flexible Upskilling and Reskilling Opportunities for All, Taking into Account Entrepreneurial and Digital Skills, Better Anticipating Change and New Skills Needs Based on Labour Market Needs, Facilitating Career Transitions and Promoting Professional Mobility" of Priority Direction 4.2 "Education, Skills and Lifelong Learning" of the European Union's Cohesion Policy Programme for 2021-2027.

I declare that I am not linked to the beneficial owner within the meaning of the law On Prevention of Conflict of Interest in Activities of Public Officials and within the meaning of Article 61 of Commission Regulation 2024/2059 and I have not participated in the preparation of the applications to be evaluated, and also there are no circumstances due to which I might violate the restrictions specified in the laws and regulations for the person involved in the management, implementation, and supervision of the European Union's Cohesion Policy Programme for 2021-2027 and due to which there are grounds to believe that I am interested in the approval or rejection of a specific application. I, the undersigned, declare the absence of a conflict of interest.

There are no reasons, including reasons related to family, emotional ties, political or national affinity, economic interests, or any other direct or indirect personal interests, due to which doubt could be cast on my independence and impartiality in the decision-making process.

I shall, without delay, inform the chairperson or deputy chairperson of the application commission or the administrative manager of the beneficiary if any circumstances arise that could cast doubt on my objectivity and independence in decision-making process.

When reviewing the received applications, I shall fulfil my obligations in a responsible manner, and also provide impartial opinions.

I undertake not to disclose any information to third parties which has become known or available to me during the evaluation of the applications, and I also undertake to use the available information and documents only for the evaluation of the projects and for decision-making regarding them. I undertake not to retain and not to hand over any written or electronic information on the application and evaluation thereof to third persons.

I am fully aware that, if I fail to comply with that specified in this declaration, I shall be excluded from the composition of the evaluation commission and I shall be held liable in accordance with laws and regulations.

Date

Signature

Given name, surname

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Translation © 2026 Valsts valodas centrs (State Language Centre)