Ministry of Employment
DENMARK
Denmark’s 45th Report on the Application of the European Code of Social Security covering the period from 1 July 2017 to 30 June 2018
Annual report
For the period 1 July 2017 – 30 June 2018
Made by the Government of Denmark
In accordance with article 74 of the European Code of Social Security
Denmark has accepted the obligations of the Code under Parts II (Medical care), III (Sickness benefit), IV (Unemployment benefit), V (Old-age benefit), VI (Employment injury benefit), VII (Family benefit), VIII (Maternity benefit) and IX (Invalidity benefit).
Denmark has also been bound, since 1955, by the Social Security (Minimum Standards) Convention, 1952 (No. 102), of the International Labour Organization (ILO), of which it has accepted Parts II, IV, V, VI and IX. With regard to Parts II and III of the Code, Denmark has been bound since 1978 by higher standards under the Medical Care and Sickness Benefits Convention, 1969 (No. 130).
With respect to the human rights treaties establishing the right to social security, Denmark has accepted the obligations under Article 12 of the European Social Charter, 1961, and Article 9 of the International Covenant of Economic, Social and Cultural Rights.
· Act No. 314 of 25 April 2018 to amend the Danish Act on the Right to Complain and Receive Compensation within the Health Service, cf. Consolidation Act No. 995 of 14 June 2018.
Patients, whose injuries occur in connection with treatment by the Danish Health Service, or due to adverse reactions caused by medicinal products, may receive a financial compensation. The area of situations where compensation can be given has been extended. The amendment applies for cases where the Patient Compensation Association makes a decision on 1 July 2018 and onwards.
· Act No. 522 of 29 May 2018 on Compensation for Pleural Mesothelioma indirectly caused by Asbestos
Family members to persons who work with asbestos are entitled to compensation for pleural mesothelioma. The compensation scheme has been into force since 1 January 2016, but is now passed by law.
In Denmark, reimbursement of medicines is divided into two groups - reimbursement provided automatically, which includes the chronically ill, and reimbursement provided after individual application by a doctor. The reimbursement scheme looks as follows:
|
Annual personal expenditure on reimbursable medicine before deduction of reimbursement |
Reimbursement for persons |
Reimbursement for persons |
|
DKK 0-965 |
0 % |
60 % |
|
DKK 965-1,595 |
50 % |
60 % |
|
DKK 1,595-3,455 |
75 % |
75 % |
|
DKK 3,455 |
85 % |
85 % |
|
Adults: In excess of DKK 18,688 (patient's co-payment= DKK 4,030) |
100 % |
|
|
Persons under the age of 18: In excess of DKK 22,968 (patient's co-payment= DKK 4,030) |
100 % |
*The threshold of thereimbursement scheme is adjusted to the rate of inflation every year.
From 2018, the chronically ill will not have a co-payment that exceeds DKK 4,030 though the threshold is adjusted to the rate of inflation.
On 22 March 2018, the Government Coalition Parties and the Danish People's Party signed an agreement, which makes the cannabis products in the medical cannabis pilot programme eligible for reimbursement from the 1 January 2019. The Government will put forward a bill on this matter in October 2018. The parties have agreed that the reimbursement will be retroactive, allowing for reimbursement of cannabis products bought in 2018. For terminally ill patients the reimbursement for products bought in 2018 will start in September 2018.
Under the agreement, terminally ill patients will be reimbursed at 100% when buying cannabis products in the pilot programme, whereas other patients will be reimbursed at 50% up to an annual reimbursement amount of DKK 10,000.
Article 12 of the Code, Article 16 of Convention No. 130. Minimum duration of care.
Please specify whether any limits to the duration of different types of medical care are prescribed in the national legislation, particularly as is regards diseases entailing prolonged care.
Answer:
The Danish Ministry of Health is working on an answer and apologies for the delay. It will be submitted as soon as possible, but after the submission of this report.
Article 68 of the Code, Article 28 of Convention No. 130. Suspension of benefits.
The Committee notes that the Health Act assigns the responsibility for delivering health services to regions and municipalities. Please specify all cases where, in accordance with national laws and regulations, municipalities and private providers may suspend or refuse provision of health services to the persons protected.
Answer:
The Danish Ministry of Health is working on an answer and apologies for the delay. It will be submitted as soon as possible, but after the submission of this report.
Article 69 of the Code, Article 29 of Convention No. 130. Right to complain and appeal.
The committee requests the Government to specify how these amendments help to speed up and streamline the consideration of complaints as to the quality or quantity of medical care and how the resulting decision of the administration under the new approach may be appealed in court.
Answer:
The Danish Ministry of Health is working on an answer and apologies for the delay. It will be submitted as soon as possible, but after the submission of this report.
The Sickness Benefits Act cf. Consolidation Act No. 1032 of June 2016.
The maximum weekly amount of sickness benefits is DKK 4,235 in 2017.
· Act No 1541 of 19 December 2017
A person, who is unable to work due to a disease that is serious, as well as life-threatening, will be able to receive sickness benefits, even if the person has received sickness benefits in the maximum period of 22 weeks within the last 9 months.
If the person has been referred to a job assessment course with resource rehabilitation allowance, but gets a serious and life-threatening disease, the person will have the right to choose to get sickness benefits instead of resource rehabilitation allowance.
· Act No 739 of 8 June 2018
The act gives an increased opportunity for foreigners to make a reconnaissance trip to their home country prior to a decision on repatriation. In regard to sickness benefits, this means that a person who receives sickness benefits may be allowed to participate in internship, training or reconnaissance trips to the country of origin, or the former country of residence, with the purpose of making a subsequent decision on repatriation.
· Act No 674 of 8 June 2017
The act entails a legal basis for the suspension of the payment of social benefits to foreign warriors and - in cases where the benefits have already been paid - to demand them repaid. The act aims to prevent foreign warriors from financing their residence in conflict areas with public funds.
Article 15 of the Code and of Convention No.102, Article 19 of Convention No.130. Coverage of the self-employed.
The Committee points out that if the Government wishes to continue to apply Part Ill of the Code to self-employed persons, to demonstrate in its next report that their conditions of entitlement and level of benefit under the national legislation comply with all articles of Part III of the Code.
Answer:
In order to be entitled to sickness benefits, both employees and self-employed persons must meet the condition that shows an affiliation connection to the labour market prior to sick leave.
Employees must meet the condition both in relation to the employer and in relation to the local authority. If the employer does not pay full salary during sickness, the employer is obliged to pay sickness benefit to the employee the first 30 calendar days of a sick period. If the employee is sick beyond the 30-day employer's period, the obligation to pay sickness benefit falls upon the local authorities.
In order to meet the conditions in relation to the employer, the employee must be employed by the employer on the day the employee falls ill. It is also a requirement that the employee has been employed by the employer for the last 8 weeks before the absence and during this period has had at least 74 hours of work.
The condition in relation to the local authorities can be met either by work as an employee or by being entitled to unemployment benefit or a substitute allowance or temporary employment benefit. In addition, special rules apply for students and persons who have completed a vocational education and persons who are employed in flexi-jobs.
In order to meet the condition by work, employees must be in a current employment and have been employed for at least 240 hours in the last 6 completed calendar months prior to the first day of absence and for at least 5 of these months been employed for at least 40 hours each month.
Self-employed persons can meet the conditions for entitlement to sickness benefit from the local authority by having carried out their activity as self-employed persons for at least 6 months, including the last month prior to the absence due to sickness, within the last 12 months. The average weekly working time must correspond to half of the full normal weekly working hours of 37 hours.
According to the Act of Sickness Benefits, the local authority does not pay sickness benefits from the first day of absence to employees or self-employed persons. For employees, the employer pays out sickness benefits as mentioned above for the first 30 calendar days, and not until after 30 days does the obligation to pay sickness benefit fall upon the local authority if the person is still sick.
Self-employed persons are entitled to sickness benefits after a period of sickness of 2 weeks, unless they have taken out voluntary insurance under the auspices of the Ministry of Employment. This can give them sickness benefit from the first or third day of sickness.
Due to historical reasons the obligation to pay sickness benefits for the local authorities takes place at different times for employees and self-employed persons. When the right to sickness benefit was introduced for self-employed persons in 1972, the local authorities’ obligation to pay sickness benefits occurred after 5 weeks of sickness for both self-employed and employed persons. This has been subsequently amended so that self-employed persons can receive sickness benefits already after 2 weeks of incapacity to work.
There has been set a maximum amount of sickness benefits. This amounts to DKK 4,300 weekly (in 2018), for both employed and self-employed persons. There is no difference in the maximum amount of sickness benefits to employed and self-employed persons.
The Act of Sickness Benefits makes no distinction between benefits payable to employed persons and self-employed persons.
Calculation of the replacement level of benefit
The Committee requests the Government to calculate in its next report the replacement rate of the sickness benefit on the basis of the weekly or monthly, but not annual, amounts, in accordance with Title II of Article 65 of the report form on the Code.
Answer:
Sickness benefits are paid to employed persons; persons who are unemployed; and persons who are self-employed. The person must have a current affiliation to the labour market and must fulfill the general requirements in the sickness benefits act.
Sickness benefits are calculated based on previous income either as an employee or as self-employed.
The amount of sickness benefits disbursed to an employee is calculated based on the previous weekly working hours before the illness, and the hourly earnings that were achieved on average in the present employment, within the last 3 months.
Sickness benefits for self-employed persons are calculated based on the income in the business. The latest annual report is used to determine the business’ income.
An unemployed person, who is a member of an unemployment insurance fund, gets paid the same amount of sickness benefits that he or she would have been qualified to receive in unemployment benefits on the first day of unemployment, if he or she had not fallen ill.
There has been set a maximum amount of sickness benefits, which amounts to DKK 4,300 weekly (in 2018). The amount is politically determined, and is based on what is considered to be an appropriate level of benefits. The same maximum amount has been set for unemployment benefits and maternity benefits.
Moreover, it should be noted that the right to sickness benefit in Denmark is an individual right independent of the marital status of the receiver of the benefits. Furthermore, the right is independent from the person’s status as a breadwinner. Most people are self-supporting in Denmark, and for the most part, both spouses contribute to the economic support of the family. The fact that the benefit is an individual right means that both spouses can receive sickness benefits at the same time, if both parties fulfill the legal requirements in the sickness benefits act.
Article 18 of the Code, Article 26 of Convention No.130. Minimum duration of benefit
The Committee requests the Government
i. to explain, in its next report, who in the above-mentioned situation pays sickness benefit to the person concerned instead of the employer and on what conditions;
ii. to specify how it intends to bring the above-mentioned general limit, which is one of the lowest in Europe, to at least the minimum of 26 weeks of benefit required by the Code;
iii. to explain the duration and the level of benefits paid during the above-mentioned process as well as the meaning of “focusing on resources”.
Answer:
The local authorities are responsible for the payment of sickness benefits during the course of illness. For an employee, the employer is obliged to pay sickness benefits during the first 30 days of illness. In order to meet the conditions in relation to the employer, the employee must be employed by the employer on the day the employee falls ill. It is also a requirement that the employee has been employed by the employer for the last 8 weeks before the absence and during this period has had at least 74 hours of work.
If a person is unemployed, the unemployment insurance fund is obligated to pay sickness benefits during the first 14 days of illness.
Subsequently, the payment of the sickness benefits will be paid by the local authorities. The condition in relation to the local authorities can be met either by work as an employee or by being entitled to unemployment benefits or substitute allowances or temporary employment benefits. In addition, special rules apply for students; persons who have completed a vocational education; and persons who are employed in flex jobs.
In order to meet the condition by work, employees must be in a current employment and have been employed for at least 240 hours in the last 6 completed calendar months prior to the first day of absence and for at least 5 of these months been employed for at least 40 hours each month.
A person that becomes incapacitated to work must have their situation reevaluated, when the payment of sickness benefits has reached 22 weeks, within the last 9 months. The local authorities must at that point assess the situation further to ensure that the person is offered appropriate help as early as possible.
It must be noted that in the calculation of the 22 weeks, the first 30 days of sickness benefits paid by the employer or the local authorities and sickness benefits paid the first 2 weeks by the local authorities to self-employed persons does not count in the 22 weeks. Furthermore, periods with salary or benefits where the person has been absent due to pregnancy, adoption - or maternity or paternity leave is not counted in the calculation of the 22 weeks.
The local authorities must decide if the sickness benefits can be extended in accordance with the legislation in the sickness benefits act. If this is not the case, but the person is still incapacitated, the local authorities will offer a job assessment process. During the job assessment process, the person will be paid benefits that correspond to the benefits payable during a process focusing on resources.
A job assessment process is characterized by being individually adjusted. The person will get a multidisciplinary and cohesive initiative that contributes to the person getting a job or starting an education. The process may encompass measures in accordance to the active labour market legislation (guidance and qualification, practical training, wage subsidized employment and mentor support) and initiatives under other legislation, including the Health Act and the Service Act.
The person will be paid benefits payable during a process focusing on resources, as long as he or she is in a job assessment process. A job assessment process must be as short as possible and have a maximum length of 2 years. If the person is still incapacitated at the end of the process, the person may be offered a new job assessment process.
The purpose of the unemployment benefit reform is to establish a modern unemployment benefit system which enhances both the mobility and the security of the Danish labour market to the benefit of both employees and employers.
· Act No. 624 of June 8 2016
Entitlement to benefits
One of the main changes implemented in the reform is that the qualifying criteria for access to unemployment benefits are based upon “income” rather than “hours worked”. The criterion is an income of at least DKK 228.348 (2018) earned within the past 36 months. However, a ceiling of approx. DKK 19.029 per month (2018) applies, which means that prospective recipients of benefits need to have been employed for at least 12 months.
Hereafter the qualifying criteria for access to unemployment benefits are based upon hours worked.
Calculation of unemployment benefit rate
Calculation of unemployment benefit rate is based on the 12 months with the highest income within the past 24 months.
Rates for graduates:
In general, unemployment benefit will be paid at a rate of 90 per cent of the recipient’s former income from employment. However, a ceiling applies of a maximum rate of DKK 849 per day (in 2017). Graduates (for whom special qualifying criteria apply) will receive 71.5 per cent of the maximum rate, while graduates who are also parents will receive 82 per cent of the maximum rate.
Benefit period
The benefit period is 2 years within a 3-year period with an option to be prolonged by up to 1 year when working for a period of half a year during the benefit period. Hours worked are recorded in an “employment account” that can be exchanged for unemployment benefits at a ratio of 1:2.
· Act no. 1670 of December 26 2017
On 18 May 2017, Denmark adopted a new unemployment insurance scheme for the self-employed and persons in non-standard jobs. The scheme aims to give better unemployment insurance coverage to the self-employed persons; persons in non-standard jobs; persons with multiple jobs; and persons combining employment and self-employment.
In this new scheme, unemployment is defined in relation to activities rather than to a categorization as either wage earner or self-employed. Eligibility rules under this scheme specifically focused on self-employed and workers in non-standard jobs are based on total (work-related) income, which includes: earnings from salaried employment and self-employment, surplus in own company and secondary activities.
The new unemployment benefit is calculated in the same way as for wage earners. The benefit calculation uses the same income base as for establishing eligibility.
The reform will enter into force 1st October 2018.
· Act no. 1540 of 19 December 2017
The acthas made changes in the Consolidation Act on Unemployment Insurance as to raise the time limit so recipients of unemployment benefits can perform certain forms of voluntary unpaid work for voluntary organizations, associations etc. up to 44 hours a month, while early retired persons can do so for 65 hours a month, before the work will cause reduction in the amount received in unemployment insurance benefits.
The act furthermore broadens the definition of what constitutes a volunteer organization to be in accordance with the definition within the social area of the Ministry for Children and Social Affairs.
· Act No. 659 of 8 June 2017
The Act repeals the obligation to send a notice of entitlement to national pension to the citizens before they reach the retirement age. Improvement of the rules for deferred pension.
· Act No. 674 of 8 June 2017
The Act introduces a competence to deprive “foreign fighters” of their social benefits, i.e. old age pension.
· Act No. 442 of 8 May 2018
The Act stipulates that entitlement to disability pension at the full rate is subject to a period of residence equivalent to no less than 9/10 of the years between the 15th birthday and the date on which the pension is first payable. If the condition for pension at the full rate is not met, the amount of pension payable will be assessed according to the ratio between the period of residence and 9/10 of the years between the 15th birthday to the date on which the pension is first payable. The Act also stipulates that refugees, who have been granted residence permit in Denmark in accordance with sections 7 or 8 of the Aliens Act, shall not be subject to more favorable rules for calculating the pension.
Rates of payment during the reference period (Art 65, p 10)
Rates of old age pension
|
Old Age Pensions per month (DKK) |
||
|
Non-single persons: |
January 2017 |
January 2018 |
|
Basic amount |
6,160 |
6,237 |
|
Pension supplement |
3,233 |
3,333 |
|
Total |
9,383 |
9,570 |
|
Single persons: |
||
|
Basic amount |
6,160 |
6,237 |
|
Pension supplement |
6,551 |
6,728 |
|
Total |
12,711 |
12,965 |
Supplementary pension allowance (“ældrecheck”) was DKK 16,900 in 2017 and is DKK 17,200 in 2018 (per year).
Article 29 of the Code. Period of residence for calculation of Benefit.
The Committee requests the Government to explain in detail the said rules for the harmonization of residency for calculating old age pension.
Answer:
It is the Danish Governments position that refugees who have been granted a residence permit in Denmark, in accordance with sections 7 or 8 of the Aliens Act, shall not be subject to more favorable rules for calculation of the pension. Hence, the relevant rules have been harmonized. This means that refugees are subject to the same rules for calculating entitlement to old age pension as other people in Denmark – both nationals and non-nationals – who have been living in other countries. Refugees who are not entitled to a full old age pension, can apply for supplementary help – a personal allowance – housing benefit and other kinds of help.
No changes have been made in the reference period.
Loss of earning capacity:
Compensation for loss of earning capacity is granted if there is a permanent loss of earning capacity of between 15 and 100 per cent as a consequence of the industrial injury. The compensation is calculated on the basis of the earned income in the 12 months preceding the injury. The maximum annual earned income is adjusted on an annual basis in pace with the general development in wages.
Compensation for loss of earning capacity is calculated subject to a deduction of the labour market contribution (8% of the earned income). The compensation is limited to 83% of the actual loss of earning capacity.
Maximum annual earned income:
DKK 516,000
Compensation for permanent injury rated at a permanent injury rating of 100 per cent (lump sum):
DKK 860,000
Carry-over in case of death:
DKK 162,000
Compensation for loss of family breadwinner:
· Surviving spouse (maximum 30 per cent of the annual earned income of the deceased. Maximum annual earned income DKK 516,000 – 8% x 30%): Max. DKK 142,416
· Children (10 per cent of the annual earned income of the deceased. Maximum annual earned income DKK 516,000 – 8%): Max. DKK 47,472
· Orphans (20 per cent of the annual earned income of the deceased. Maximum annual earned income DKK 516,000 – 8%): Max. DKK 94,944.
Where the death was caused willfully or through gross negligence, special compensation may be granted to such surviving dependents as were particularly close to the deceased. Compensation for surviving dependents (maximum): DKK 100,000.
Maximum annual earned income:
DKK 527,000
Compensation for permanent injury rated at a permanent injury rating of 100 per cent (lump sum):
DKK 879,000
Carry-over in case of death:
DKK 165,500
Compensation for loss of family breadwinner:
· Surviving spouse (maximum 30 per cent of the annual earned income of the deceased. Maximum annual earned income: DKK 527,000 – 8% x 30%): Max. DKK 145,452
· Children (10 per cent of the annual earned income of the deceased. Maximum annual earned income DKK 527,000 – 8%): Max. DKK 48,484
· Orphans (20 per cent of the annual earned income of the deceased. Maximum annual earned income DKK 527,000 – 8%): Max. DKK 96,968.
Where the death was caused willfully or through gross negligence, special compensation may be granted to such surviving dependents as were particularly close to the deceased. Compensation for surviving dependents (maximum): DKK 100,000
The planned reform of the workers’ compensation system
The Committee hopes that in developing the reform proposals the Government and Parliament will fully take into account the international obligations accepted by Denmark under Part VI of the Code as detailed below.
Answer:
The planned reform of the workers’ compensation system mentioned in the 2017 report has not yet been accomplished. Instead the Danish Government will propose changes and simplifications of the Workers’ compensation Act which is expected to be negotiated in the Danish Parliament in 2018/19. It is not possible at this time to give further information about the extent of any changes in the Act.
Article 32(b). Temporary incapacity for work
The Committee observes that the conditions of entitlement and the level of the general sickness benefit do not comply with the higher level of protection guaranteed by the Code in case of employment injury (absence of the qualifying period, no limitation of the duration of benefit, higher replacement rate, and so forth) and asks the Government to conduct in its next report detailed comparative analysis of the national sickness benefit legislation with the provisions of each Article of Part VI of the Code.
Answer:
Denmark finds that the possibilities for an injured person to obtain financial support after an industrial injury should be seen in context with the development and present status of the overall social security system and the conditions in the labour market. It is thus Denmark's opinion that the Code, which was written more than 50 years ago, must be interpreted in the light of its purpose and not only from its wording. It should, among other things, be taken into account that the Danish social security system has been significantly improved and changed since Denmark’s accession to the Code. E.g. with the introduction of the Sickness Benefit Act in Denmark in 1973, citizens became entitled to free economic benefits in case of incapacity for work due to illness. Prior to the introduction of this Act, the right to financial support in case of illness required that the sick person was a paying member of a health insurance society.
Workers’ compensation does not cover compensation for the temporary loss of earnings in connection with incapacity to work. However, employees, self-employed and unemployed people who receive unemployment benefit or social security benefits, may be entitled to receive sickness benefits if they are incapacitated for work due to sickness. Employees and self-employed who suffer a temporary incapacity to work due to sickness – regardless of it being due to an industrial injury or private conditions – are covered by the Danish sickness benefit scheme. The sickness benefit is calculated based on how much money the sick person would have earned if he or she were not sick. If the sick person is unemployed when the illness occurs, the person will receive an amount equal to the unemployment benefit. There is a ceiling/maximum of approx. DKK 18,860.00 (approx. € 2,500.00) per month.
In addition, a significant part of the Danish labour force (approximately 70 per cent) has collective agreements with employers, which ensures them full wages under sickness absence. This also applies if the absence is due to an occupational injury. In a number of areas, collective agreements have an increased and better coverage for sickness absence when the leave is due to an occupational injury.
Denmark considers on this basis that Denmark is complying with the underlying objectives of the Code and does not consider it expedient to launch a comprehensive comparative analysis of the national sickness benefit legislation with the provisions of each Article of Part VI of the Code.
Article 36(3). Conversion of the periodical benefit into a lump sum.
The Committee observes that these regulations violate Article 36(3) of the Code, which authorize lump sum payment only where the degree of incapacity is slight (less than 25 per cent), or where the competent authority is’ satisfied that the lump sum will be properly utilized.
Answer:
As mentioned in the reply concerning Article 32(b), Denmark finds that the possibilities for an injured person to obtain financial support after an industrial injury should be seen in context with the overall social security system. Compensation for loss of earning capacity is thus not the sole financial support an injured person in Denmark can obtain if the person is unable to work after an industrial injury. The Danish sickness benefit scheme, unemployment benefit scheme and the cash benefit scheme for instance also cover people with an industrial injury. People with a permanent loss of working capacity might also qualify to flexi-job or disability pension depending on the severity of their injury or disease. These benefits are paid out periodically (monthly). Therefore, it is not in Denmark considered a risk with regard to the injured person’s future financial situation to pay out the compensation as a lump sum when the injured person has half or more of his or her earning capacity intact. On this basis, Denmark is of the opinion that Denmark does not violate the purpose of the provision in Article 36(3).
Article 38. Duration of benefit.
The Committee refers to Article 68(c) of the Code for coordination of payment of employment injury benefit with old-age benefit and asks the Government to explain the situation of compliance in its next report.
Answer:
In Denmark, the right to compensation for loss of earning capacity has to be seen in close connection with the old-age pension. The right to compensation for loss of earning capacity in Denmark replaces the ordinary wage income and the situation should therefore be compared with a person with a wage income. Therefore, a person with a loss of earning capacity due to an occupational accident receive a financial compensation for loss of earning capacity until the retirement age, after which the person's compensation will stop. This corresponds to an employed person with a wage ceasing to receive pay when retiring, after which both groups instead will receive a publicly funded old-age pension, which is life-long. For a person with an occupational injury, whose active participation in the labour market ends due to old age, the loss of labour income is thus no longer a result of the work injury, but because of the person’s age. On this basis, Denmark is of the opinion that Denmark does not violate the purpose of the provision in Article 36(3).
· Act No. 1402 of 05/12/2017
As from 1 January 2018, it is a requirement for entitlement to the full child benefit that the applicant has had at least 6 years of residence or employment in Denmark in a 10-year period prior to the benefit instalment. Previously, the requirement was 2 years of residence or employment.
If the applicant has been a resident in Denmark for less than 6 years, the amount of the benefit depends on the period of residence or employment:
· 8.3% of the full benefit after six months;
· 16.7% after one year;
· 25% after 1 ½ years;
· 33.3% after 2 years;
· 41.7% after 2 ½ years;
· 50% after 3 years;
· 58.3% after 3 ½ years;
· 66.7% after 4 years;
· 75% after 4 ½ years;
· 83.3% after 5 years
· 91.7% after 5 ½ years
For persons covered by EC Regulation no. 883/04, periods of employment or residence in other EU/EEA countries and Switzerland are included when the accrual principle is to be met (the aggregation principle).
On March 27 2018, a political agreement was reached on a new family law system, which includes an analysis of the consequences of sharing family benefits, including child benefits. The analysis will be conducted under the auspices of the Ministry for Children and Social Affairs and is expected to be completed in autumn 2019.
· Act No. 701 of 8 June 2018 (Consequential changes to the legislation on social benefits because of the adoption of simultaneous holiday, compensation of private employers, because of the introduction of a simultaneous holiday, etc.)
The act ensures that the regulations in the act on maternity leave, and the right to have a holiday during a period of maternity leave, is consistent with the new regulations regarding the right to holiday and the right to paid leave.
· Act No. 59 of 30 June 2018 (Leave of absence due to the death of a child)
The act entails a right of absence of 14 weeks to fathers and fellow mothers if the child is stillborn, dies or is adopted before the 32th week after birth. This makes their situation equal to mothers in relation to the right to absence under the maternity leave. The act equate adoptive parent, so they will have the right to 14 weeks of absence when the child dies within 32 weeks of receiving the adopted child.
If the parent, or the adoptive parent, meets the conditions to receive maternity benefit, they will be able to receive maternity benefits in the 14-week period, either to the parent or as a refund to the employer, if the parent receives pay during the absence from work.
· Act No. 442 of 8 May 2018
The Act stipulates that entitlement to disability pension at the full rate is subject to a period of residence equivalent to no less than 9/10 of the years between the 15th birthday and the date on which the pension becomes payable. If the condition for pension at the full rate is not met, the amount of pension payable will be assessed according to the ratio between the period of residence and 9/10 of the years between the 15th birthday to the date on which the pension is first payable. The Act also stipulates that refugees, who have been granted residence permit in Denmark in accordance with sections 7 or 8 of the Aliens Act, shall not be subject to more favorable rules for calculating the pension.
· Act No. 553 of 29 May 2018
The Act clarifies which persons who may be granted disability pension even though they have not participated in a rehabilitation programme because it is evident that they will never be able to work again.
Article 56(b), Calculation of benefit.
Taking into account that the resulting pension will be well below the minimum rate guaranteed by the Code, Denmark is requested to calculate the rate of the disability pension under Article 67 of the Code for the standard beneficiary under the above-mentioned scenario, including all deductions and supplements.
Answer:
The question was originally to make the calculation according to the original method, but since the rules have been changed (See ACT NO 442 of 8 May 2018), the calculating is now made for the new rules.
A person who became fully disabled at the age of 45 years and who has resided in Denmark for ten years after his or her 15th birthday, will be entitled to DKK 82,776 (yearly amount) in disability pension, if the disability pension is awarded after the 1st of July 2018.
Calculation = 10/((45-15)*9/10) ≈ 0.37
Disability pension = 0.37*223,704 ≈ 82,776 DKK
To supplement the disability pension, it is possible to apply for social assistance. The supplement and the disability pension may not together exceed the amount that could be paid if the applicant had been entitled to a full disability pension – but it will as a minimum correspond to the level of social assistance the recipient as an alternative to invalidity benefit would be entitled to.
Denmark has not ratified Part X of the European Code of Social Security.
See submitted art. 76 report.
Articles 65—67. Determination of the reference wage used for calculating the replacement level of benefits.
The Committee again invites the Government to carefully study the ILO technical note so as to determine the reference wage of the skilled and unskilled worker following the methodology laid down in Article 65(6)(b) and Article 66(4)(b) of the Code (options 2 and 5 in the technical note).
Answer:
Since wages and working conditions on the Danish labour market are generally determined by the social partners in collective agreements, we have requested the Confederation of Danish Employers to update information on a skilled manual male employee in the iron and metal industry in order to meet the requirements of the Code. The Confederation of Danish Employers has replied that it is not possible to produce statistical figures that meet the requirements of the Convention. Their figures show that the average wage in the metal industry (male or female) was DKK 375,356 for a skilled worker and respectively DKK 302,928 for an unskilled worker (in 2017). We refer also to the answer to the following question.
Adjustment of benefits to the cost of living.
The Committee once again requests the Government to explain its policy of maintaining the purchasing power of the long-term benefits in payment and giving pensioners a fair share of the growth of the national economy and provide statistics on the adjustment of benefits for the period 2011—17 requested the report form on the Code under Title VI of Article 65.
Answer:
Denmark has already throughout this reporting on the accepted parts provided information on the calculations of rates for each category of benefit. The aim of this calculation is to strive at maintaining the purchasing power of the long-term benefits in payment and at giving pensioners a fair share of the growth of the national economy. The benefits are adjusted yearly by a rate that is based on the wage development on the Danish labour market. When it comes to the adjustment of benefits beyond this reporting period, we refer to earlier reporting.
Adequacy of social security benefits.
The Committee once again requests the Government to explain, with reference to detailed statistics, what indicators are used for establishing minimum income guarantees and benefit amounts; how the subsistence minimum is determined in Denmark; and what role is assigned to the social security transfers in preventing and reducing poverty.
Answer:
The Danish social security system consists of a variety of benefits, and we have already throughout this reporting on the accepted parts provided information on the calculations of rates for each category of benefit. When setting the minimum income guarantee, Denmark is bound by constitutional law of Denmark which embeds the overall obligation to support persons who are unable to support themselves. This support should be at a sufficient level for persons to manage in society and to allow a life in dignity. Denmark has at previous occasions expressed concerns about the definition of the poverty threshold used by the Committee of Experts. The 50 per cent median equalized income threshold is not commonly recognized as a poverty threshold. In Denmark, poverty is regarded as a broader phenomenon than the lack of financial resources. Focusing on only one indicator is misleading, and it will distract attention from the causes of social exclusion. Still, Denmark is committed to work with poverty indicators as part of our UN Development Goal Strategy. It is our firm belief that no one is left behind in the Danish social allowances’ scheme.
Applying the Code on the basis of minimum benefits.
In light of these explanations, the Committee would like the Government to assess in its next report on the Code whether and to what extent the existing minimum social security guarantees comply with the abovementioned requirements of the Code as to their level and conditions of entitlement, and could be used to give effect to its provisions under each accepted Part of the Code. Please indicate whether, conceptually and institutionally, these guarantees are being set and operated separately or are becoming seen and regulated in a coordinated manner as an integrated safety network aimed at covering all residents and children.
Answer:
In general, Denmark is considered as providing a high level of minimum social security guarantees compared to European standards, also taking into account the costs of living in Denmark. The Danish social security system consists of a variety of benefits, and we have already throughout this reporting on the accepted parts provided information on the calculations of rates for each category of benefit. We appreciate the explanations from the Committee, and Denmark is of the view that Danish security guarantees are in conformity with the requirements and principles of the Code. For further information we attach a booklet that outlines the Danish social security system from 2016.
National social protection floors.
The Committee recalls that these replies should be submitted to the ILO by 31 December 2017. In order to have the fullest information, the Committee requests the Government to give in its next reports on the Code an overview of the state of construction of national SPFs and explain future policies in that respect.
Answer:
Denmark submitted our reply to the ILO on 7 December 2017. Denmark is very supportive to the ILO’s work in this field, including the ILO flagship programme on creating and extending social protection floors. ILO has played an important role in developing social protection floors and has now a leadership role in the UN system in providing assistance in respect of their implementation. The role of social protection is fundamental for the development and resilience of all societies, for eradicating poverty and promoting social justice. The Danish model is based on strong social protection, and we strive to guarantee the sustainability and its adaptation to modern challenges such as an ageing population. To have the fullest information, we attach the Danish reply to the ILO.
Consolidated reporting on the Code.
The Committee asks the Government to pay particular attention to providing all the required statistical data and calculations of the level of benefits, checking the data for consistency, and specifying the official sources of statistics which shall henceforth be continuously used by the Government for reporting purposes.
The Committee draws the Government’s attention to the possibility of requesting the ILO and the Council of Europe to conduct a one-day training workshop on how to use the consolidated report and ILO technical note to improve and simplify concurrent reporting on the Code and ILO standards, clarify existing technical questions and reduce the corresponding workload for the Government.
Answer:
Denmark takes well note of the recommendation from the Committee, and we are doing our best to provide required data and calculations, to check data and to specify sources of statistics. We would appreciate more information on the training workshop, and we support work done in efforts to simplify the reporting and to reduce the workload. Denmark would be happy also to engage in future reform work on the reporting obligations which are found pretty exhaustive.