Improved salary compensation scheme
On 30 March 2020, the Danish government and the social partners have agreed to strengthen the existing agreement providing temporary salary compensation to employers in relation to employees who are under threat of loosing their jobs due to COVID-19. The maximum compensation available to employers is increased to DKK 30,000 per month per full-time employee.
Contents of the agreement
The change to the tripartite agreement is intended to improve the salary compensation scheme and offer additional assistance to more employees working in companies that face financial challenges due to COVID-19.
The maximum compensation for salaried and non-salaried employees is increased from DKK 23,000 and DKK 26,000, respectively, to DKK 30,000 per month per full-time employee (both salaried and non-salaried employees). After the change, the compensation rates awarded to employers are as follows:
- Salaried employees: The state compensation is 75% of the employee’s salary up to a maximum of DKK 30,000 per month.
- Non-salaried employees: The state compensation is 90% of the employee’s salary up to a maximum of DKK 30,000 per month.
The change will have retroactive effect for the entire period from 9 March 2020 to 9 June 2020.
The other requirements for using the salary compensation scheme will not be changed.
Our assistance and advice
We are monitoring the development closely and are ready to guide your business on the use of the salary compensation scheme. We are also happy to assist if you ned help identifying and analysing what existing alternative and/or supplementary measures might be available to you.
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