Starting May 1st of this year, the new unemployment benefit rules (A-Kasse) will come into effect. These changes are based on a parliamentary agreement reached in June of last year between the then-governing Social Democratic Party, the SF, the Radical Party Venstre, the Danish People's Party, and the Christian Democrats.
Employment Minister Ane Halsboe-Jørgensen describes these changes as a “fair redistribution” of unemployment benefits, and here are the details of the new changes in bullet points:
- New graduates under 30 years of age and without children: The monthly amount will be reduced to 9,514 kronor instead of the current 13,836 kronor, and the duration of unemployment benefits will be reduced to one year instead of two.
- For employed individuals who have lost their jobs: the amount will be increased by 3650 kronor during the first three months of unemployment.
- The possibility of receiving 23,000 kronor during the first three months of unemployment, provided that the person was registered in the unemployment fund (A-Kasse) for the four years prior to becoming unemployed, and provided that he had completed a total of two years of full-time employment during the last three years.
- New graduates who have reached the age of 30 and have no children: the amount decreases to 12,018 kronor per month after three months of unemployment, where it was previously 15,868 kronor.
-Adding a Danish language requirement for foreigners: The executive decision under the agreement stipulates a new language requirement for newly qualified foreigners who have no connection to the Danish labor market, whereby they must pass the Danish language test 2 in order to be entitled to unemployment benefits.
Criticism from A-Kasse funds
The publication of the executive announcement was met with strong criticism from several of the country's large unemployment insurance funds because of the reduction in unemployment benefits for graduates. One criticism was that the government was treating graduates "ironicly" when it reduced graduate benefits while increasing benefits for people who were employed. Criticism also noted that, in the context of reducing the duration of unemployment benefits for new graduates from two years to one year, employers are often reluctant to hire new graduates. One criticism stated that the agreement "punishes young people.".
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