COVID-19 - Update - 30 March 2020

The government and the labour market parties strengthen the tripartite agreement on temporary wage compensation

The government and the labour market parties agree to improve the tripartite agreement on temporary wage compensation for workers at risk of losing their jobs as a result of the corona crisis.

In doing so, they strengthen the safety net for the workers in the difficult economic situation caused by COVID-19.

More than 11,000 companies have already applied for wage compensation, resulting from the tripartite agreement on temporary wage compensation scheme, concluded March 14th, 2020.

With today's agreement, the parties agree to increase support in the existing wage compensation scheme. The purpose is to ensure that even more companies make use of the scheme so that even more employees can keep their jobs.

The maximum level of support is increased to DKK 30,000 per month.

The new agreement means that the maximum level of support for both salaried and non-salaried employees is raised from respectively DKK 23,000 and DKK 26,000 to DKK 30,000 per month per covered full-time employee.

The state will continue to fund 75 per cent of salaries for salaried employees and 90 per cent of the salary of non-salaried employees. Other conditions for the salary compensation scheme follow the current salary compensation scheme, which was agreed upon March 14th

The strengthened temporary compensation scheme will apply from March 9th to June 9th, 2020. Companies that have already applied for salary compensation are therefore also covered by the higher level of support.

If you are a business manager, you can get more information on the Danish Business Authority's hotline on tel. 72 20 00 34 (weekdays 08.30-16.00 / Friday 09.00-15.00).

This text above is a translation in English of the information published on this page: https://www.fm.dk/nyheder/pressemeddelelser/2020/03/regeringen-og-arbejdsmarkedets-parter-styrker-trepartsaftalen-om-midlertidig-loenkompensation

At the end of this page a pdf file can be downloadet: file:///Users/emmathorbjornsen/Downloads/Aftale%20om%20styrkelse%20af%20trepartsaftalen%20om%20midlertidig%20loenkompensationsordning.pdf

This is the English translation of the document: 

Agreement to strengthen the tripartite agreement on temporary wage compensation scheme

The government and the labour market parties can see that at present there are already more than 11,000 companies that have applied for wage compensation following the tripartite agreement on temporary wage compensation scheme. Hence, the common agreement is helping to ensure that many employees do not lose their jobs due to the financial situation caused by COVID-19.

The parties agree to improve the wage compensation scheme to provide enhanced assistance to several employees employed in companies that are financially challenged as a result of COVID-19. This aims to ensure that more people can keep their jobs. The strengthened assistance means that the maximum support level for salaried and non-salaried employees is raised from respectively DKK 23,000 and DKK 26,000 to DKK 30,000 per month per covered full-time employee.

The state will continue to fund 75 per cent of salaries for salaried employees and 90 per cent of the salaries of non-salaried employees. Other conditions for the wage compensation scheme follow the current salary compensation scheme, agreed upon March 14th. As with the other wage compensation model, it will be the Danish Business Authority that administers the model.

The strengthened aid will be introduced retroactively for the entire period from March 9th. 

The parties note that an increase in the maximum compensation in the scheme to DKK 30,000 per month for both salaried and non-salaried employees is estimated, with considerable uncertainty, to incur additional expenses of DKK 0.7 billion and that the total expenditure estimate for the scheme thus amounts to DKK 4.6 billion. 

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