Denmark’s low unemployment rate and generous unemployment benefits are well-known. Unemployment insurance funds play a crucial role, especially during challenging times like the recent pandemic. Unlike other social benefits, you need to proactively seek out unemployment insurance before you find yourself unemployed. There are many options, rules, and requirements, which can be confusing, but we’re here to help you understand everything.
What is an Unemployment Insurance Fund?
An unemployment insurance fund, known as “a-kasse” in Danish, is a type of private insurance that you pay a monthly fee for or quarterly. This ensures you receive unemployment benefits and maintain a reasonable income if you lose your job or cannot find employment after graduation. There are several private unemployment insurance funds in Denmark.
Here is a list of some unemployment funds in Denmark:
| Unemployment Fund | Open to | Price per Month (2024) | Read more |
|---|---|---|---|
| Det Faglige Hus A-kasse | Anyone | DKK 497 | Here |
| ase A-kasse | Anyone | DKK 527 | Here |
| FTF A-kasse | Anyone | DKK 488 | Here |
| Min A-kasse | Anyone | DKK 506 | Here |
| 3F A-kasse | Certain professions | DKK 467 | Here |
| Akademikernes A-kasse | Anyone | DKK 484 | Here |
| Business Danmark A-kasse | Sales and Marketing | DKK 506 | Here |
| Lederne A-kasse | Managers | DKK 499 | Here |
| Magistrenes A-kasse | Anyone | DKK 529 | Here |
| DSA | Certain professions | DKK 470 | Here |
What is the Cheapest Unemployment Fund in Denmark?
The cheapest unemployment fund in Denmark is DSA, with a monthly fee of DKK 470. Note that DSA only offers memberships to certain professions. The cheapest unemployment fund that accepts all professions is Det Faglige Hus, with a monthly fee of DKK 556 for trade union and a-kasse (unemployment fund). Remember, that the prices may change.
Benefits of Being a Member of an A-kasse in Denmark
Navigating the labor market can be challenging, especially for foreigners. Membership in an a-kasse provides guidance on requirements, entitlements, and how to claim your unemployment insurance. Here are some benefits of having unemployment insurance:
- Financial Security
- Peace of Mind In Case You’re Loosing Your Job
- Personal Advice on Career Choices, Social Events, and Courses
- Available for Recently Graduated Students
- Often Connected to and Work with Unions
Requirements for Getting Unemployment Insurance
There are minimal requirements to sign up for unemployment insurance. You can sign up if:
- You are a resident or have a work permit in Denmark.
- You meet the residency requirements (applicable only to Non-EU/EEA/Nordic citizens).
- You sign up for an unemployment insurance fund.
- You have worked in Denmark for at least 12 months.
- You list yourself as unemployed on the official job portal and upload your CV.
- You are available to actively apply for jobs weekly, have legal residence in Denmark, and can take a job with one day’s notice.
Full-time vs. Part-time Unemployment Insurance
If you work more than 30 hours a week on average, you qualify for full-time insurance, which has higher monthly premiums but also higher payouts. Part-time insurance is for those working 30 hours a week or less and only requires applying for part-time jobs.
How to Receive Denmark’s Unemployment Benefits
To claim unemployment benefits, you must meet specific requirements before collecting. These vary depending on whether you are full-time or part-time insured.
For full-time insurance, you must have earned a gross income of at least DKK 246,924 over the last three years. For part-time, the gross income requirement is DKK 164,616 over the same period. Despite your monthly income, you can count a maximum of DKK 20,577 per month towards this total. Additionally, you need to meet the minimum income requirement and the one-year membership requirement.
Denmark’s Unemployment Benefits for 2024
The amount you receive depends on various factors, including whether you are insured full-time or part-time, your job type, recent graduation status, family situation, and your a-kasse. Currently, the maximum benefit is DKK 20,359 per month for full-time insured individuals and DKK 13,573 per month for part-time insured individuals. You can read more about the amounts here (Danish).
You are entitled to unemployment benefits for up to two years within a three-year period, calculated by working hours. Extensions are possible if you were on maternity leave or severely ill.
Importance of Unions
Often, unemployment insurance funds partner with unions. Unions help legally protect your working rights and can assist in situations like wrongful termination, inadequate working conditions, or contract negotiations. Joining a union is optional and will not affect your unemployment benefits.
By understanding these aspects of the Danish unemployment insurance system, you can better navigate your options and ensure you are prepared in case of job loss.