New unemployment benefit reform - overview

Read here about the new unemployment benefit reform.

Accrual

In order to obtain unemployment benefits, you must meet the new income requirement from 1 July 2017. It is calculated in Danish kroner: You must have earned DKK 228,348 within three years (2018 figures). You can count a maximum of DKK 19,029 (2018 figures) for each month to meet the requirement. For a part-time insured person the income requirements is lower.

Only unsubsidised work accrues the right to unemployment benefits. This means that jobs with subsidies do not count.

Rate of unemployment benefit

The unemployment fund calculates your rate of unemployment benefit based on the best 12 months of earnings within the past two years.

A rate is only calculated when you start a new period of unemployment benefits.

As of 1 July 2017, a monthly rate – a fixed amount – is introduced, whether or not the month is short or long. The rate will be DKK 18.633 per month for at full-time insured person, maximum rate.

Payment on account

From 1 July 2017, unemployment benefits will be paid on account for an entire month at a time, irrespective of the length of the month. The unemployment benefit card must be submitted about one week before the end of the month. Therefore, you must give en informed guess as to whether you count on having working hours etc. – or not – in the last week of the month. Your unemployment benefits are paid on that basis.

When the month has passed, the employers report any pay to the income register. Then the income register is cross-referenced to the unemployment benefit cards. If the unemployment benefits paid out to you were too high or too low, the amount is adjusted within the next three months. This may e.g. take place if you get unexpected work for the last days of a month.

Usage of unemployment benefits in hours

It is also a new regulation that in the future you only use the number of hours out of the period of unemployment benefits for which you have received unemployment benefits. Until 1 July 2017, the use is calculated in full weeks – so you have used the unemployment benefits for a week, even if you have only received unemployment benefits for one day of a week.

Waiting day

There will be a waiting day every four months where unemployment benefits for one day are deducted if you have not worked more than 148 hours within a four-month period.

Excess hours are abolished

Previously, pay for more than 37 hours a week was offset against your unemployment benefits. That is called "excess hours". From July 2017, the excess hours are abolished so that in the future there will be no offsetting against the subsequent month if you have had overtime work in the previous month.

However, overtime work is set off against the month in which the hours are placed if you have both overtime work and obtain unemployment benefits in the same month.

Maximum two days of unemployment benefits paid by the employer

From 1 July 2017, you can obtain a maximum of two days of unemployment benefits paid by the employer (G days). There are no longer any special rules for short-term employment relationships. G days are the days for which the employers pay in the event of dismissal and lay-off. 

Prolongation of your period of unemployment benefits – now calculated in hours

Since 1 January 2017 it has been possible to prolong the period of unemployment benefits by up to one year if you have had paid work.

From 1 July 2017, the prolongation is no longer calculated in weeks, but in hours. This means that one hour of paid work gives two hours of prolongation of the period of unemployment benefits. 

Re-accrual

If you have hours deposited in your employment account when your period of unemployment expires because you have had paid work in your period of unemployment benefits, you can earn the right to a new period of unemployment benefits when you meet a requirement for 1,924 hours of work within three years.

If you have no hours deposited in your employment account when you have lost the right to unemployment benefits, you can enter the system again in the same way as when you first earned a right to unemployment benefits. This means that you must have earned DKK 228,438 (2018 figures) within three years. 

You may risk a shorter period of unemployment benefits

If you have been unemployed a lot, you risk having your period of unemployment benefits reduced by one month. That happens if you have received unemployment benefits for four years (a total of 7,696 hours) within eight years (96 months).

The rule is retroactive. It means that also unemployment before 1 July 2017 counts. 

Are you unemployed now?

The clauses mentioned above are only part of the rules that enter into force on 1 July 2017.

Are you unemployed now and not sure of what the rules will mean to you, you are always welcome to contact your unemployment fund. 

Hour bank at Mit3F (My3F)

From 1 July 2017, you can see at jobnet.dk, among other things, how many hours you have spent and how many hours are deposited in your employment account or "hour bank" with the unemployment fund.

 

Dokumenter
Ny dagpengereform - overblik 18 KB PDF
 

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