Friday, June 14, 2024
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Denmark can do more

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The first part of the reform package “Denmark can do more” has been presented this week. The proposal from the Danish government will be discussed in the Parliament in the following months. With enough support from the other parties, the proposals can turn into laws within two years. 

Student? 

  • The unemployment benefits for graduates will drop to 9.500 DKK /month (before taxes) if you are under 30 years old and to 12.000 DKK if you are over 30 years old. If you have a child, this cut doesn’t affect you. 
  • You can receive unemployment benefits (graduates) for one year. (Instead of two like today)
  • A requirement to know the Danish language (at an unknown level for now) will be introduced. The requirement will not apply if you had a job during your studies. 
  • The rate of unemployment benefits can grow depending on your income during your studies.
  • You can earn up to 4000 DKK (next to SU) without paying taxes. 

Worker? 

  • 4 years of A-Kasse membership + honest work in the last 2 years out of 3, can earn you an increased unemployment benefits rate. 5000 DKK more in the first 3 months. 
  • A larger part of your contributions to the trade union will return via taxes (7000 DKK) 

On the Social Safety Net? 

  • The 37-hours rule will be introduced. This means that you need to work those hours for the benefit of society. Beach and forest cleaning and other important tasks for society. 
  • In the beginning, the rule will affect only those that have been on the social safety net in the past 3 years out of four and haven’t passed the second level in Danish. 
  • A 5000 DKK prize (not taxed) for those that choose to get out of the social safety net. 

Livin’ in Denmark? 

  • The yearly green check will be given only to pensioners. The supplementary green check for children will increase by 240 DKK. 
  • The electricity bill will be lower. The tax on electricity will gradually be lowered until 2030. 
  • The tax on earnings from the stock market will increase – from 42% to 45%. 
  • One billion will be invested yearly in the green transition. 
  • 3 climate-oriented vocational schools will be opened to prepare the workforce for the green transition. 
  • Two billion and a half will be invested in education, to ensure that all who finish compulsory education can read, write and calculate. At the moment, we have 600,000 people with difficulties in reading and writing. 

Entrepreneur? 

  • Deductions up to 50 million DKK for investments in research and development
  • The bureaucracy around running a firm in Denmark will be digitalized and simplified to reduce costs. 

Reactions to the reform package

  • The social-democrat mayor of Aarhus, Jacob Bundsgaard, considers the 37-hours rule for the people on the social safety net to be the wrong approach. He doesn’t expect that putting people to clean beaches and forests will bring them closer to the job market. The mayor of Ishøj, Ole Bjørstorp agrees with him. The municipalities will have to find community work for almost 20,000 people – a task expected to be almost impossible. 
Narcis George Matache
Narcis George Matachehttp://www.narcis.dk
Executive Editor and Founder of "Last Week in Denmark".

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