Factsheet for measure
DK-2020-11/660
–
Updated
– measures in Denmark
Three months' suspension of eligibility criteria for long-term unemployment benefit holders
Timekrav for folk på kontanthjælp sættes på pause
Background information
With the different initiatives to support wage earners and self-employed, now follows an initiative from the government to support unemployed people - and in this case - receiving social security protection because the person is no longer eligible for an unemployment benefit. A so-called 225 hours rule in force requires that the unemployed needs to have had 225 hours of employment the last 12 months in order to continuously receiving a cash benefit. This rule the government and the Parliament has suspended on the background that finding a new job is impossible in the current situation.
Legal reference: LFF 2020-04-14 nr 169.
Content of measure
To be able to fulfill the demand of 225 hours work within the last 12 months with the aim to keep the cash benefit requires an active search for jobs. Finding new jobs has become a significantly difficult task. The COVID-19 has send thousands of employees home with a wage compensation waiting for reopening of the labour market. However, this has not avoided a drastic increase in unemployment due to bankruptcies or close downs of parts of a company. On this background, the government and the Parliament on 6 April 2020 decided to put the 225 hours rule on hold with effect from 9 March 2020 and three months forward. This means that the unemployed person receiving social security benefits in this period will receive the cash benefit without documenting 225 hours of employment in the last 12 months nor without having continuously to search for jobs.
A person of 30 years of age with children receives DKK 15,355 a month (1 January 2020). Persons under 30 years without children receives DKK 11,554 a month. Singles under 30 years with children receives DKK 14,677 a month.
Updates
The following updates to this measure have been made after it came into effect.
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11 May 2021
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The Danish Parliament passed a bill (L 219) to extend the suspension of the 225-hour-rule until the 30 June 2021. The extension is part of an overall framework agreement for the reopening of Denmark from 22 March 2021.
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09 February 2021
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The parties to the agreement agreed to extend the suspension of the 225-hour rule by a further two months until and including 30 April 2021.
Furthermore, the right to commence an educational increase to 110% of their previous unemployment benefit rate by another year, so that the right also applies in 2022.
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10 July 2020
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Due to the Corona situation, the Danish parliament has decided to extend the suspension of the 225-hour rule for social security protection recipients until September 8, 2020.
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Use of measure
It is too early to estimate the number of beneficiaries that falls under this specific rule.
Target groups
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Workers
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Businesses
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Citizens
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Unemployed
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Does not apply to businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: Peak or cross-sectoral level
Involvement
The social partners have expressed agreement with this support measure for unemployed receiving a cash benefit.
Views and reactions
There has been no particular reaction from the social partners.
Sources
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06 April 2020: Bredt flertal sætter timekrav for folk på kontanthjælp på pause
(bm.dk)
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19 June 2020: 225-timers-krav på pause indtil september på grund af corona-udbruddet
(bm.dk)
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11 May 2021: Parliament extends suspension of daily allowance consumption until 30 June 2021
(bm.dk)
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11 May 2021: L 219 Forslag til lov om ændring af lov om aktiv socialpolitik
(www.ft.dk)
