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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case DK-2020-11/624 Updated – measures in Denmark

Temporary compensation scheme for self-employed persons

Midlertidig kompensationsordning for selvstændige

Country Denmark , applies nationwide
Time period Temporary, 09 March 2020 – 08 June 2020
Type Legislations or other statutory regulations
Category 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 23 July 2020)

Background information

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 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.

Content of measure

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:

  • Turnover or B-income has been at least DKK 10,000 per average. month before coronavirus / COVID-19;
  • Maximum of ten full-time employees. This means, for example, a half-time employee equivalent to half a full-time employee, etc. The business owner and employee spouse do not count in the ten full-time employees;
  • Have expected loss of at least 30% due to coronavirus / COVID-19
  • Lost revenue from March 9 through June 8, 2020.

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.

Updates

The following updates to this measure have been made after it came into effect.

10 July 2020

On 18 April, the temporary compensation scheme for self-employed and freelancers was extended for one month to apply from 9 March 2020 to 8 July 2020.

Use of measure

Unknown

Target groups

Workers Businesses Citizens
Self-employed
Platform workers
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Unknown

Involvement

No involvement

Views and reactions

Unknown

Sources

Citation

Eurofound (2020), Temporary compensation scheme for self-employed persons, 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.