Government lands new dagpenge agreement

300 million kroner deal to go into effect on 1 January 2017

Just two days after receiving the long-awaited recommendations regarding the unemployment insurance benefit (dagpenge) from Dagpengekommissionen, the government has teamed up with Dansk Folkeparti and Socialdemokraterne to agree on a new agreement.

The new deal (here in Danish), which will come into effect on 1 January 2017, closely reflects Dagpengekommissionen’s recommendations for a more flexible dagpenge system.

“I’m pleased we could agree to a broad agreement concerning a hotly-discussed topic,” said Claus Hjort Frederiksen, the finance minister. “The deal ensures that it will become more attractive to work, so we’ve ticked off an important issue.”

READ MORE: Government receives ‘dagpenge’ recommendations

Depending on dependants   
The deal means it will become more attractive for the unemployed to take on short-term jobs than is currently the case, and there will also be a healthier incentive structure for graduates.

Today, everyone receives the same dagpenge rate whatever their family status. But in the future the rate will differ depending on whether people are dependants (i.e supported by another) or not.

As it stands now, all new graduates who sign up for an A-kasse unemployment insurance fund (a month after their education has been completed) receive a special graduate rate of 14,690 kroner per month, or 82 percent of the highest dagpenge rate. In the future, that will be decreased to 71.5 percent (1,881 kroner less) for dependants.

The deal also includes three qualifying days per year, rather than the two qualifying days per quarter Dagpengekommissionen recommended.

The total cost of the deal is expected to be around 300 million kroner and will be taken out of the 2017 budget.