Ministry of Employment
DENMARK
Denmark’s 47th Report on the Application of the European Code of Social Security covering the period from 1 July 2019 to 30 June 2020
Annual report
For the period 1 July 2019 – 30 June 2020
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. Furthermore, as Convention No. 102 does not apply to seamen and sea-fishermen, the report should state expressly whether, and to what extent, account has been taken of the fact that the protection provided for in the Code and Protocol applies to those categories of workers as well.
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).
Denmark is also bound by the Equality of Treatment (Social Security) Convention, 1962 (No. 118), since 1969, of which it has ratified with respect to the branches medical care (a), sickness benefit (b), employment injury benefit (g) and unemployment benefit (h).
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 on Economic, Social and Cultural Rights.
The Code came into force for Denmark on 17 February 1974.
Reimbursement of medicines for the chronically ill
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:
Reimbursement SCHEME 2020*
|
Annual personal expenditure on reimbursable medicine before deduction of reimbursement |
Reimbursement for persons |
Reimbursement for persons |
|
DKK 0-995 |
0 pct. |
60 pct. |
|
DKK 995-1.655 |
50 pct. |
60 pct. |
|
DKK 1.655-3.590 |
75 pct. |
75 pct. |
|
DKK 3.090 |
85 pct. |
85 pct. |
|
Adults: In excess of DKK 19.465 (patient's co-payment= DKK 4.190) |
100 pct. |
|
|
Persons under the age of 18: In excess of DKK 23.885 (patient's co-payment= DKK 4,1900) |
100 pct. |
*The threshold of the reimbursement scheme is adjusted to the rate of inflation every year.
Patients´ rights:
By law and Executive Order, Denmark has made restrictions to patients’ rights. These measures are introduced to ensure that the necessary resources are available for treatment, nursing and staffing in order to manage the current COVID-19 crisis. Planned and future treatments, examinations, rehabilitation etc. may therefore be postponed in order to prioritize the overall capacity for assessing and treating patients with urgent, life-threatening illnesses, including patients with COVID-19. However, at the moment, the pressure on health services from infections has dropped, and hospitals are starting to call patients in again. Patients with the greatest need for treatment or examinations will be called in first.
Act No 272 of 26 March 2019 to amend the Danish Healthcare Act
Certain non-residents in Denmark are charged payment for emergency hospital treatments that he or she may receive under a temporary stay in Denmark. These persons are also charged payment for non-emergency hospital treatment in cases where it is not reasonable to refer the person to treatment in his or her home country. The act has not changed the fact that the treatment may still be provided free of charge, when the regional authorities consider it reasonable. However, in case of emergency no acutely ill or injured person may be denied hospital treatment in the public healthcare system with reference to payment claims. The act came into force on 1 July 2019.
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Act No 1555 of 27 December 2019 (A more simple organization of the first sickness benefit follow-up).
The Act provides e.g.: for the first follow-up interview the municipality will not have to obtain a medical certificate in all cases, but only in cases where the municipality finds it necessary or the sick person requests it.
Act No 212 of 17 March 2020 (Extended refund for employers and sickness benefits for self-employed due to COVID-19).
The Act entitles the employers reimbursement from the employee's first day of absence due to COVID-19. Normally, it is only after 30 days of absence from work that the right to reimbursement takes effect. Self-employed persons are entitled to sickness benefits from the first day of absence due to COVID-19 instead of after two weeks, which is the normal waiting period.
Act No 275 of 26 March 2020, as amended by Act No 473 of 22 April 2020 (Temporary extension of the right to sickness benefits).
Normally, the entitlement to sickness benefits expire when a person has received sickness benefits for more than 22 weeks in the last 9 months. The Act introduces the right to 3 months extension of sickness benefits for persons who have received sickness benefits for 22 weeks during the period 9 March to 30 June 2020. No person will lose their right to sickness benefits during the period from 9 March until the 30 June 2020.
Act No 657 of 20 May 2020 (Temporary period of entitlement to sickness benefits for employees at increased risk of infection with COVID-19 and for employees who are relatives of persons at increased risk of infection with COVID-19).
To protect employees against infection with COVID-19 the Act entitles employees at increased risk and employees who are relatives of persons with increased risk to sickness benefits, even if they do not fulfil the normal requirement of being incapacitated.
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Changes made during the reference period 1 July 2019 – 30 June 2020
Act No. 59 of 28 January 2020 on amending the law on unemployment insurance etc. (Elimination of residence requirements for the right to unemployment benefits etc.)
The residence requirement for the right to unemployment benefits was abolished by law with effect from 1 February 2020. The amendment means that members of an unemployment insurance fund no longer must stay within Denmark or another EU/EEA country or Switzerland for 5 out of 12 years in 2019, 6 out of 12 years in 2020 and 7 out of 12 years from 2021, to be eligible for unemployment benefits.
Other conditions continue to apply i.e. the entitlement to unemployment benefits, including fulfilment of a requirement for prior income and employment as well as a requirement for one year membership of an unemployment insurance fund. At the same time, a transitional scheme has been introduced which accommodates the persons who have signed out of the unemployment insurance funds after the residence requirement was introduced. This is ensured by the fact that a former member of an insurance fund, who has signed out as a result of the residence requirement in 2019 and until the abolition enters into force on 1 February 2020, will be able to restore his or her membership in the unemployment insurance fund, from the time of the cancellation.
Act No. 274 of 26 March 2020 as amended by Act No. 473 of 22 April 2020. (Periods that are disregarded by the use of unemployment benefits etc.)
Due to the consequences of COVID-19, unemployed people’s unemployment benefit seniority is paused until 30 June 2020. This means, that the period from 1 March 2020 to 30 June 2020 will not be included in the unemployed benefit seniority. Unemployment beneficiaries may thereby receive unemployment benefits for up to four months longer. To be covered by the measure, it is a condition that the citizen is a member of an unemployment insurance fund in the period until 30 June 2020.
Changes decided, planned or proposed for the following year
To counter the effects of COVID-19, the Government plans to lower the requirements for entitlement to unemployment benefits for persons in the industries that are affected by the lockdown.
The period since 1 March 2020, which will not be included in the unemployed benefit seniority, is proposed to be prolonged to 31 August 2020.
Furthermore it is proposed that self-employed may join an unemployment insurance fund and immediately receive benefits in up till two months, if the persons close down the business temporarily due to the lockdown.
Research/evaluations, completed or initiated
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Qualifying period - Article 23 of the Code.
The Committee notes from the indications provided by the Government that an additional residence requirement for entitlement to unemployment benefit has been introduced by Act No. 1710 of 27 December 2018 with effect of 1 January 2019. According to this Act, in order to be entitled to an unemployment benefit (arbejdsløshedsdagpenge), an unemployed person must have (voluntarily) joined an Unemployment Fund (A-kasse) for a period of at least one year, must have had earnings above a certain amount during the last three years, and have completed a period of residence either in Denmark or in another member State of the EU/EEA or Switzerland. The Committee notes, as indicated by the Government that the required period of residence is gradually being phased in from five years out of 12 years in 2019, six years out of 12 years in 2020 and seven years out of 12 years as from 2021. The Committee observes that, as a consequence, persons (in particular migrant workers) who have not already resided in one of the aforementioned European countries for of at least five years before 2019 are effectively being deprived of any income protection in case of unemployment.
The Committee notes the Government’s explanations that the purpose of this additional requirement of residence is among other things to ensure that recipients of unemployment benefit have a strong connection to Denmark, to get more foreign nationals and Danish nationals into the labour market instead of them receiving public benefits and to integrate foreign nationals into the Danish community to a larger degree. The Government further points out that the new requirement of residence applies equally to both Danish and foreign nationals. Persons who are not entitled to unemployment benefits may instead rely, in case of unemployment, to social assistance or integration benefits (kontanthjælp eller integrationsydelse).
The Committee recalls that according to Article 23 of the Code, the introduction of a qualifying period for a right of unemployment benefits is only permitted to such an extent “as may be considered necessary to preclude abuse”. It observes, however, that the purpose of the new residence requirement is entirely different as it is targeted at non-EU foreign nationals. In this regard, the Committee observes that the new requirement will have a disproportionate impact on third country migrant workers, limiting to a large extent their entitlement to unemployment benefit, which, it considers, amounts to indirect discrimination. The Committee therefore requests the Government to take the necessary measures to ensure that contributory unemployment benefits continue to be provided without any residence requirement, in line with Article 23 of the Code.
Answer:
As mentioned above, the residence requirement for the entitlement of unemployment benefits has been abolished with entry into force from 1 February 2020. At the same time, a transition scheme has been established so that previous members of an unemployment insurance fund, who has signed out because of the residence requirement, will be able to resume their membership.
Act no 1123 of 19 November 2019
The Act lowered the income effect on the calculation of old age pension by:
1) Raising the deductions in the calculated income for individual work income from DKK 100,008 (€13,415) to DKK 122,004 (€16,366) a year and
2) Raising the deduction of the calculated income for a non-pensioner spouse from 50 % of the income up to DKK 307,770 (€41,286) to 54% of the total income.
Rates of old age pension
|
Old Age Pensions per month (DKK) |
||
|
Non-single persons: |
January 2019 |
January 2020 |
|
Basic amount |
6,327 |
6,419 |
|
Pension supplement |
3,453 |
3,576 |
|
Total |
9,780 |
9,995 |
|
Single persons: |
||
|
Basic amount |
6,327 |
6,419 |
|
Pension supplement |
6,923 |
7,122 |
|
Total |
13,250 |
13,541 |
Supplementary pension allowance (“ældrecheck”) was DKK 17,600 (€2,360) in 2019 and is DKK 18,000 (€2,415) in 2020 (per year).
Media allowance (“mediecheck”) vas DKK 235 (€31,5) in 2019 annually and is DKK 478 (€64.1) in 2020 annually.
The think tank established under the former Danish Government for longer and better senior working lives concluded its work in November 2019. The Think Tank has published several papers, evaluations and a final report relating to senior workers and reasons to retire. Most of the think tank’s work is in Danish, but they are all available and can be downloaded through the the think tank’s own website: https://seniortaenketanken.dk/viden
Period of residence for calculation of benefit - Article 29 of the Code
Further to its request on the new rules for calculation of old-age pension, the Committee notes the Government’s indication that according to Act No. 442 of 8 May 2018, the new residence requirements only apply to pensions payable as from 2025, when the state pensionable age will have increased to age 67.
Answer:
The new residence requirement will only apply to old-age pensions, payable as from 2025. This will ensure that new pensioners, who by 1 July 2018 had fulfilled the former residence requirements (i.e. 40 years) will be entitled to a full Danish pension when reaching the retirement age.
· The maximum compensation for loss of earning capacity, which does not depend on the permanent injury percentage, is an annual amount of DKK 551,000 (in 2020-level) until the retirement age.
Currently, The Danish Government is preparing a law draft, which is planned to be presented to the Danish Parliament (Folketinget) in October 2020. The key points in the draft are as follows:
• New, updated lifetime assumptions for determining capitalization factors - expected entry into force 1 January 2021.
• Clarification of the interaction between the Workers’ Compensation Act and the product liability rules - expected entry into force 1 January 2021.
• Clarification of the rules concerning payment for transport and lost earnings to persons who escort injured persons in connection with investigations requested by the Labor Market Insurance / National Board of Appeal - expected entry into force 1 January 2021.
• New rules on reporting work accidents - expected entry into force 1 July 2022.
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Conversion of the periodical benefit for permanent partial loss of earning capacity into a lump sum - Article 36(3) of the Code
The Committee noted in its previous conclusions that the Danish Workers’ Compensation Act (Lov om arbejdsskadesikring) provided compensation for permanent injury to a much larger extent in form of lump-sum payments than permitted under Article 36 of the Code. The Committee recalled that the Code requires that, as a rule, benefits in case of total or partial permanent loss of earning capacity shall be a periodical payment. It further recalled that only in exceptional situations, where the degree of incapacity is either slight or where the competent authority is satisfied that the lump sum will be properly utilized paragraph 3 of Article 36 provides for the possibility of commuting a periodical payment for a lump sum.
The Committee observes that under the Danish Workers’ Compensation Act, compensation for loss of earnings capacity is payable in an amount of 80 per cent of previous earnings up to retirement age, when it is replaced by an old-age benefit. For an assessed partial loss of earnings capacity of at least 50 per cent but less than 100 per cent, the pension payment is proportionately reduced and the insured may claim that part of the compensation which corresponds to a loss of earning capacity of 50 per cent to be converted into a lump sum. Moreover, for an assessed loss of earning capacity of at least 15 per cent, but less than 50 per cent, a lump sum is normally paid automatically. In addition, a compensation for permanent injury is paid, which is regarded as a compensation for non-pecuniary damage. This compensation is always paid as a lump sum.
Moreover, with respect to survivors’ benefits in case of death resulting from employment injury, the compensation for loss of breadwinner (erstatning for tab af forsørger) may also be converted into a lump sum at request of the beneficiary according to section 27(3) of the Workers’ Compensation Act.
The Committee notes the view taken by the Government that the possibilities for an injured person to obtain financial support after an employment injury “should be seen in context with the overall social security system” ensuring a high level of sickness benefit or unemployment benefit or the possibility to qualify for flexi-jobs or disability pensions, so that the pay out of compensation as lump sum when the injured person still maintains half or more of his or her earnings capacity is not considered a risk with regard to the injured person’s future financial situation.
The Committee recalls in this respect that the purpose of Part VI of the Code consists in establishing a legal obligation of compensating a permanent loss of earning capacity by a lifelong, stable, predictable and proportionate periodical payment provided throughout the contingency at the prescribed level without any additional qualifying conditions. Replacing such legal obligation with a lump-sum payment accompanied by the possibility to qualify for several different periodical benefits each subject to different qualifying conditions (unemployment benefit, flexi-job, disability pension etc.), as mentioned by the Government, cannot be considered as fulfilling this purpose. The Code does not prohibit the payment of additional lump-sum payment in order to compensate, for instance, for moral damages, but it requires that at least the (partial or total) loss of earnings capacity is, as a general rule, compensated by periodical payments. The Committee observes, however, that this is not the case in Denmark.
The Committee also points out that compensation for employment injury may still be required after attaining the pensionable age, taking into account, inter alia, that the victim of an industrial accident may still suffer a loss in the quality of life or lower pension rights because of the fact that he/she could not continue his/her professional career in the same way as he/she would have been able to without injury. The Committee therefore recalls with reference to paragraph (c) of Article 68 of the Code that when the person concerned is in receipt of two social security cash benefits, the benefit may be suspended only for the part not exceeding the other benefit. Accordingly, a beneficiary whose disability benefit is suspended due to the payment of the old-age benefit to which he/she becomes entitled upon reaching pensionable age should be guaranteed an overall pension amount corresponding at least to the level of the employment injury disability pension.
In light of the above, the Committee once again requests the Government to take the necessary measures to ensure that the employment injury scheme, and more specifically its rules on conversion of a periodical payment into a lump sum for persons with partial loss of earnings capacity of 15 per cent and higher as well as in case of the death of the breadwinner, is brought into full conformity with the requirements of Article 36 of the Code.
Answer:
For a welfare state as Denmark, it is our approach to see the social security system as a whole and not to look in isolation at certain parts of the social system, including the occupational injury insurance.
As stated in previous reports, Denmark finds that the possibilities for an injured person to obtain financial support after an employment injury should be seen in context with the overall social security system. Still, Denmark maintains our position that the right to compensation for loss of earning capacity has to be seen in close connection to the old-age pension benefit. 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.
However, the Danish Government plans a legal reform of the occupational injury system. In this connection, the Government will look more closely at the Committee of Experts' assessments, including that more benefits should be paid as a periodical payment. In accordance with Danish practice for drafting legislation concerning the labour market, the social partners will be consulted and engaged in the reform process.
Still, Denmark is of the opinion that there is a need for a more updated interpretation of the Code that takes into account the different welfare systems of the member states and the various schemes for social protection in the different member states. For instance, in Denmark the sickness and unemployment benefit schemes will also cover persons who have suffered an employment injury and citizens with a permanent loss of working capacity might also qualify for flexi-job or disability pension depending on the severity of their injury or disease.
Duration of survivors’ benefit - Article 38 of the Code
In its previous conclusions, the Committee requested the Government to provide explanations on the duration of the survivor’s benefit. The Committee notes from the explanations provided by the Government that compensation for loss of a breadwinner due to an employment injury is granted to the spouse or cohabiting partner as monthly payments in accordance with section 20 of the Workers’ Compensation Act for a period of ten years. It also notes that the amount shall remain unchanged during this ten-year period and that the benefit, in accordance with section 27(3) of the Act, may be converted into a lump sum at the request of the beneficiary. The Committee notes the Government’s indication that the Danish Workers’ Compensation system provides the possibility to extend the duration of compensation for loss of the breadwinner beyond ten years. In this regard, the Committee recalls that in accordance with Article 38 of the Code, survivors’ benefit shall be granted throughout contingency and therefore its duration shall not be limited by ten years. The Committee therefore requests the Government to specify the provision of the national legislation stating that survivors’ benefits may be extended beyond the period of ten years, as well as further information as to the conditions for such extension to be granted and the duration of a possible extension. The Committee further requests the Government to provide statistical data on the number of cases in which an extension was granted in the last years.
Answer:
Initially, Denmark would like to reiterate the view that the Code should be interpreted in the light of developments in the labour market. Denmark is characterized by a high employment rate for both men and women. This means that most people, immediately or within a short period of time, have the opportunity to become self-supporting after the death of a spouse / partner.
With regard to the specific issues of the Committee, we can state the following:
The rules on compensation for loss of breadwinner follow from section 20 in the Danish Workers’ Compensation Act.
The section has following wording:
1. Where a person is entitled to a transitional allowance under subsections (1)-(3) of section 19 above and has lost a breadwinner as a consequence of the injured person's death, or such person's means of subsistence have been otherwise reduced as a consequence of the death, such person shall be entitled to compensation for such loss. The compensation shall be determined with due regard to the extent of the support and the surviving person's possibilities of self-support in view of age, health, education, employment, means of subsistence and financial situation.
2. The compensation shall be granted as a temporary monthly benefit, amounting annually to 30 per cent of the annual earned income of the deceased, cf. section 24. The compensation shall be payable as per the date of death at the rate of one twelfth monthly in advance. The term fixed shall not exceed 10 years. However, where a full salary is paid to the surviving person for a period of time in connection with the death, the monthly benefit shall only be payable as per the date when such period expires. Where the deceased received a monthly compensation payment for loss of earning capacity under this Act compensation for loss of breadwinner shall only be payable from the first day of the month following the death.
3. The benefit set out in subsection (2) above shall continue unchanged throughout the fixed term, except where the benefit is fully or partly converted to a lump sum or the beneficiary dies.
4. The monthly compensation payments shall cease by the end of the month when the injured person reaches the national pension age, cf. section 1 A of the Social Pensions Act.
In practice, the period in the situations in which compensation is granted to the survivor is typically set as:
• 2-3 years of compensation in cases where the deceased and the survivors earned largely the same, but where the death entails, for example, a changed housing situation. Thus, the survivor is granted a compensation in order to adapt to the changed circumstances and could, for example, move to a smaller dwelling and thereby reduce housing expenses.
• 5 years of compensation in cases where the deceased's income has been substantially higher than the survivor's income and where there are minor children and perhaps a house.
• 10 years of compensation, if the survivor is about 50 years of age or older, is a stay-at-home and without education or is seriously ill or in cases where there is a very high financial dependency on the deceased. The compensation is granted for 10 years with the possibility of renewal up to the time when the survivor reaches the retirement age. However, prolongation beyond the 10 years requires either serious illness, old age or similar conditions.
The Labor Market Insurance has stated that a total of 105 survivors have got a compensation for loss of breadwinner in the years 2012-2019. Fewer than five of these have been granted compensation for a period of more than 10 years.
Changes made during the reference period 1 July 2019 – 30 June 2020
Benefit rates of the Danish child and youth allowance (børne- og ungeydelse)
The Danish child and youth allowance is a tax-free cash benefit aimed at improving the living conditions of families with children. The allowance provided depends on the age of the child:
· For children aged 0 to 14, the allowance is granted under the child allowance scheme, which contains three subgroups (children aged 0-2, 3-6, and 7-14). Children aged 0-2 will receive DKK 4,596 (€616) quarterly (in 2020-level). Children aged 3-6 will receive DKK 3,639 (€487) quarterly (in 2020-level).
· For children aged 15 to 17, the allowance is granted under the youth allowance scheme. Children in the age group 7-14 will receive DKK 2,862 (€383quarterly (in 2020-level).
· Children aged 15-17 will receive DKK 2,862 (€383) quarterly, although the allowance will be paid in monthly rates of DKK 954(€128) (in 2020-level).
For more details on the benefit rates, e.g. the 2020-level, see https://www.skm.dk/skattetal/satser/satser-og-beloebsgraenser/boerne-og-ungeydelsesloven
Benefit rates of the ordinary child benefit (børnetilskud)
The ordinary child benefit is a subsidy for children that in general have a higher need for economic support compared to children living with both their parents and thus have two sources of income. The primary groups of recipients are children of single parents, children of disability pensioners and children lacking a provider.
· Ordinary child benefit amounts to DKK 5,880 annually for each child (In 2020-level). Extra child benefit amounts to DKK 5,992 per family per year (In 2020-level).
· Special child benefit amounts to a basic amount of DKK 15,036) per year and special addition to DKK 1,944 per year (In 2020-level). If there are no parents, special child benefit amounts to DKK 30,072 per year and a special addition of DKK 3,888 per year (In 2020-level).
The payments will be paid quarterly, starting from the quarter following the time when the conditions for receiving the benefit are met. The benefits are exempted from tax.
The benefits will be paid as long as the conditions are met, but not any longer than the end of the quarter of the year, when then child turns 18 years.
For more details on the benefit rates, see table 18 in https://www.retsinformation.dk/eli/retsinfo/2019/10025
Changes decided, planned or proposed for the following year
An analysis focusing on separated families with children was expected to be finalized by the end of 2019. However, after the Danish General Election in 2019, this analysis has been postponed due to the work carried out in the Commission on Social Benefits (Ydelseskommissionen), established by the new Social-Democratic Government.
The Commission has been mandated to develop recommendations for a more balanced system regarding social assistance (kontanthjælp) and associated benefits, including the ordinary child benefit (børnetilskud). The new and more balanced system of social assistance and associated benefits is to ensure that children in Denmark grow up under reasonable living conditions while clear work incentives for the recipients of social assistance should be maintained.
The Commission on Social Benefits is expected to deliver its recommendations to the Danish Government by the end of 2020.
The Social-Democratic Government has introduced the Temporary Child Benefit (det midlertidige børnetilskud) for parents on integration benefits and parents affected by the current ceiling over social assistance. The earmarked Temporary Child Benefit is provisional and will expire when the recommendations from the Commission on Social Benefits have been presented to the Government, and a new system of social assistance and associated benefits has entered into force.
In addition, the Government plans to reintroduce a poverty threshold to measure the development of poverty in society.
Research/evaluations, completed or initiated
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Changes made during the reference period 1 July 2019 – 30 June 2020
None
Changes decided, planned or proposed for the following year
The Directive (EU) 2019/1158 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 20 June 2019 on work-life balance for parents and carers and repealing Council Directive 2010/18/EU is to be implemented before 2nd August 2022.
Research/evaluations, completed or initiated
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Medical care without copayment - Article 49 of the Code
The Committee requests the Government to clarify whether insured women have access to free prenatal care, care during confinement and postnatal care, and hospital care where necessary, in accordance with Article 49 of the Code, which does not allow any sharing in the cost of such care by the beneficiary throughout the contingency.
Answer:
Maternity medical care and health services are a part of the general health care system and free of charge. The rules regarding own payment do not concern maternity medical care. The expenses are covered through tax revenue.
A pregnant woman may receive prenatal care with her family doctor and a midwife. She is also offered several examinations by a midwife and her doctor before and immediately after delivery.
The hospital clinics/maternity wards provide care and treatment to pregnant women, women in labour, mothers who have given birth and new-borns. During confinement/labour the woman is attended to by a midwife and, in case of complications, by a doctor.
A woman may choose to give birth at home or at the hospital. The regions, which are responsible for all public hospital services, must provide midwife assistance in cases of home confinement.
The regions are also responsible for providing pre- and antenatal services. Typical pre- and antenatal services are: midwife consultations; antenatal and parent preparation classes; smoking cessation programs; prenatal diagnostic screening, such as nuchal fold scan and blood sample – assessing the risk of Down’s syndrome; and scan to determine any specific congenital anomalies.
Changes made during the reference period 1 July 2019 – 30 June 2020
Act No. 339 of 2 April 2019 (entry into force 1 January 2020)
The Act introduced a mandatory pension for people who receive a disability pension. The contributions to the mandatory pension will be paid from 2020 as 0.3 pct. of the calculated disability pension, with a deduction of ATP-contributions and other supplementary second pillar pensions. The contributions will increase by 0.3 per cent per year until 2030. In 2030, the contributions will be 3.3 per cent. The contributions to the mandatory pension are financed by the state and will not reduce the disability pension.
Act No. 1123 of 19 November 2019
The Act lowered the income effect on the calculation of disability pension by raising the deduction in the calculated income for a non-pensioner spouse with 13,000 DKK a year – that raised the yearly deduction amount from 236,728 DKK to 249,728 DKK in 2019.
Act no. 1420 of 17 December 2019
The act was passed to remove barriers for people who receive a disability pension in relation to their movement within Denmark, Greenland, and the Faroe Islands. Three initiatives were past and implemented in each country’s legislation regarding disability pension. The three initiatives are:
1) Faster exchange of information between municipalities when a person who receive disability pension moves from one country to another to reduce time taken to deal with each case.
2) A temporary right to continue to receive disability pension for up to 12 months if the person applies for social benefits when moving between Denmark, Greenland, and the Faroe Islands and
3) In some situations, the right to disability pension is transferred to the new territory (without application) when moving from one of the territories to another.
Act no. 1559 of 27 December 2019
Senior disability pension was dismissed by 1st January 2020 and replaced by a new benefit - Senior Pension. Senior pension was introduced on 1st January 2020. Senior Pension can be granted to persons with a permanently reduced working capacity who have six years or less until retirement age. It is a condition that the person has a long-term link to the labour market with of at least 20-25 years of employment and that the working capacity is reduced to a maximum of 15 hours a week in relation to the person’s most recent job. It is also a condition that the person fulfils the basic requirements regarding citizenship, residence, and insurance periods, which apply to the right to Danish social pension. The benefit will be adjusted according to personal and spouses/partners income of a certain amount. Senior pension is granted until the pensionable age, where the Senior Pension will be replaced by old-age pension. Application for Senior Pension must be sent to the Danish municipality. However, the application must be sent to Udbetaling Denmark if the person lives outside Denmark.
Rates of disability pension and senior pension
|
Disability pension and senior pension per month (DKK) |
||
|
Non-single persons: |
January 2019 |
January 2020 |
|
Disability pension |
16,044 |
16,229 |
|
Senior pension |
- |
16,229 |
|
Single persons: |
||
|
Disability pension |
18,875 |
19,092 |
|
Senior pension |
- |
19,092 |
The benefit rates will be adjusted according to personal income of a certain amount. The benefits may also be adjusted according to the income of the spouse or partner if this exceeds a certain ceiling. The disability pension is granted permanently. At the pensionable age, it will be replaced by the old-age pension.
For more details on the benefit rates, see tables 5-11 in https://www.retsinformation.dk/eli/retsinfo/2019/10025
Changes decided, planned or proposed for the following year
A political agreement has been concluded to establish a new Senior Pension Unit that will handle the granting of Senior Pension from 1st January 2021. The legislation has not been passed by end of June 2020.
Research/evaluations, completed or initiated
-
Denmark has not ratified Part X of the European Code of Social Security.
See art. 76 report.
Adjustment of long-term benefits to the cost of living - Article 65(10) of the Code
In reply to the Committee’s previous request for statistical data on the cost of living and the corresponding adjustment of the long-term benefits which had not been supplied in the reports since 2011, the Government indicates that benefits are adjusted yearly by a rate that is based on the wage development on the Danish labour market. The Committee once again requests the Government to provide the data required to show that the benefit adjustment rate based on the wage development has permitted the purchasing power of the long-term benefits to be maintained in payment vis-à-vis the rate of inflation in Denmark since 2011, as requested in Title VI of Article 65 of the report form for the Code.
Answer:
As earlier reported, Danish unemployment benefits, cash benefits, public pensions etc. are regulated annually. We have taken well note of the requests by the Committee, which will find the requested Title VI below.
The Cost-of-living Index shown below is the official Danish index of average consumer prices. The Index of Earning is the monthly wage for all (men and women) employees in the manufacturing industrial activities who are not in a managerial position, based on full-time employment.
The development of the benefits could be compared with these figures, which indicates the cost of living and wages respectively:
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Period under review |
Cost‑of‑living index |
Index of earnings* |
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A. Beginning of period**= 2011........................... B. End of period** =2018.................................... C. Percentage A ................................................... B |
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29,700 33,083 11.4 per cent
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Source:Cost-of-living Index is Index of Consumer Prices from Statistics Denmark, with basis at 2015=100 (https://www.statistikbanken.dk/statbank5a/selectvarval/saveselections.asp).
The figures at Index of Earnings is from fifth row in third column in the table below (2019) and similar definition for 2011.
* The index of earnings should correspond to the classes of employees or economically active persons shown under the Article dealing with persons protected (Articles 27, 33, 55 or 61). If no index of earnings is available, the index of money wages may be substituted.
** The indices at the beginning and end of each period should refer to the same base.
As reference wage of a Danish skilled and unskilled worker, the Ministry of Employment has used the average wage based on all employees in the sectorial group ‘Manufacturing Industrial Activities’ and updated the table from Report no. 46, see below.
The Ministry is still considering how to determine the reference wage for future reporting, since it seems outdated from a Danish view only to look at wage statistics for male employees.
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Reference wage of skilled and unskilled workers (2017 and 2018) |
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Remarks: · For both rows, a standard monthly wage has been used. Statistics Denmark’s calculation is based on a standard wage week of 37 hours. · First and second row show the average monthly wage for men who work in the major group of economic activities (ISOC Division 24-29), respectively, and in private manufacturing industrial activities in total. The distinction between skilled and unskilled is based on the employees’ highest documented education. Unskilled employees also include persons with an unknown education or unfinished primary school education. · Third and fourth row show the average monthly income for all employees with the exception of persons in a managerial position or persons who are in positions that entail knowledge on the highest level of the area in question (ISCO major group 1, 2 and 3). The distinction between skilled and unskilled employees is solely based on the job tasks and duties. Skilled employees are defined by ISCO major groups 4-7, and unskilled employees are defined by ISCO major groups 8 and 9. Source: Calculation made by the Ministry of Employment based on wages statistics registered in the Ministry of Finance (lovmodellen) and in the Statistikbanken.dk (Statistics Denmark). |
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For further illustration, the Committee will find the table below showing the regulation of unemployment benefit over the period.
Like all other social benefits the unemployment benefit is regulated annually by the so-called ”satsreguleringprocent” (= annual rate of adjustment). This annual rate of adjustment is determined each year by the Finance Act, on the basis of wage developments (average of employees in the private sector) the years before. The regulation e.g. from 2019 to 2020 is calculated as the increase in wages from 2018 to 2019. This scheme is laid down by law and cannot be changed without special legislation.
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it Period under review* |
Benefit (unempl.benefit pr. Month DDK) |
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Average per Beneficiary I** |
Benefit for Standard beneficiary II** |
Other estimates Of benefit level III** |
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A. Beginning of period (2011)............................... B. End of period (2018)....................................... C. Percentage A ................................................... B |
............................... ............................... ............................... |
16.597 DDK 18.633 DDK 12.3 per cent |
............................... ............................... ............................... |
Remarks:Maximum Unemployment Benefit for members of Unemployment Insurance Funds per month before tax.
Source:Ministry of Employment.
* This period should, as far as possible, coincide with the period referred to in the table under paragraph 2.
** Please give such data in columns I, II and III as will show the percentage variation of the benefit.
We hope that the Committee finds the answer satisfactory. Otherwise, we would like to receive further guidance for correctly reporting.
Consolidated reporting on the Code
With reference to its previous conclusions, the Committee notes that the Government supports the work done by the ILO to simplify the reporting and to reduce the workload and is doing its best to provide required data and calculations, to check data and to specify sources of statistics. The Committee reminds the Government that it can fulfil its future reporting obligations under Article 74 of the Code and related ILO Conventions by reviewing and updating the consolidated report.
Answer:
The Ministry of Employment hopes at a later stage to take advantage of the consolidated reporting between the Code and ILO-C102 and thanks for being reminded of this opportunity. We would be grateful to receive further information on available guidelines; link to web-based tools etc.