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Danish unemployment benefit reform around the corner

Denmark's more than century old unemployment benefit system is being modernised. Considering the reactions to the proposal for a more flexible system from the commission on unemployment benefits, political negotiations will be tough.
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The commission on unemployment benefits

Dagpenge report

Established to propose a system which would see fewer unemployed people using their right to unemployment benefits, without impacting on employment rates or public finances.

Main elements:

  • Maintain the existing demand for one year of employment in order to qualify for full unemployment benefit, but proposing to introduce a flexible qualification which would mean even just a few months of work could extend the benefit period. This should increase the incentive for accepting a job — including short term ones.
  • A new calculation of the benefit level, based on hours not weeks.
  • No benefit days, during which you would not receive unemployment benefits.
  • Maintaining a two year unemployment benefit period.
  • The commission was made up of four representatives from the social partners and five experts.
Read more (in Danish):
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