Factsheet for case DK-2020-11/624 – Updated – measures in Denmark
|Country||Denmark , applies nationwide|
|Time period||Temporary, 09 March 2020 – 28 February 2021|
|Type||Legislations or other statutory regulations|
Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme
|Author||Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research) and Eurofound|
|Case created||15 April 2020 (updated 25 March 2021)|
The outbreak of corona virus has already had major financial consequences. Many self-employed people face major challenges, and this requires further initiatives. Therefore, has the government together with all the parties in the Parliament passed a new temporary compensation scheme for the self-employed.
The scheme for self-employed people was first introduced with the political agreement on 1 April 2020 targeting companies that lost revenue from 9 March through 8 June 2020. However, the scheme was partly reopened two times in December 2020, first with a new political agreement on 9 December 2020 due the introduction of new restrictions in 38 municipalities and secondly due the introduction of the restrictions in a total of 69 municipalities. Finally, on 15 December, it was decided to roll out the compensation scheme to the rest of Denmark, in total 98 municipalities.
To get compensation, the companies must apply for compensation on the Danish Commerce Agency's corporate portal for companies. The scheme is managed by the The Danish Business Authority.
The legal reference to the scheme is BEK nr 332 af 01/04/2020.
Self-employed, freelancers and other companies with a maximum of 10 full-time employees may receive temporary compensation for lost revenue due to coronavirus / COVID-19.
To apply for lost revenue compensation, it requires:
With the first political agreement on April 2020, companies could apply for compensation for lost revenue in the period from 9 March through 8 June 2020. But with the new political agreement on December 2020, companies can again apply for compensation for lost revenue in the period from 9 December 2020 through 3 January 2021.
State compensation is 75% of the revenue loss, however, a maximum of 23,000 kr. per month corresponding to the rates in the salary compensation scheme for salaried employees agreed with the social partners in the tripartite agreement.
The compensation may amount to up to DKK 34,500 per month, if the self-employed has a spouse employed.
Self-employed or small businesses can receive maximum compensation for three months from 9 March until 9 June. It is a requirement that the company does not have more than 10 full-time employees.
The Danish Business Authority (Erhvervsstyrelsen) regularly updates a webpage with information on the numbers of the different compensation schemes.
To date on 17 March 2021 the compensation scheme for self-employed has approved 130,762 applications divided between 74,098 businesses covering 81,596 people. The total dispursed compensation amounts to DKK 7,232 mill (€985 million).
|Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
The compensation scheme for self-employed persons was not adopted in a tripartite negotiation between the employer organisations, labour organisations and the Government. Instead, it was adopted by the Government and a large majority of the parties in the Parliament. However, the business and industry organisation were involved in the preparation of the scheme in the form of consultation processes. These consultation processes are not public.
Eurofound (2020), Temporary compensation scheme for self-employed, case DK-2020-11/624 (measures in Denmark), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.