Coronavirus - temporary salary compensation scheme for private companies is extended and adjusted
The Danish government and the two sides of industry have agreed to extend the three-partite agreement on temporary salary compensation until 8 July 2020. Moreover, the government and the parliamentary parties have agreed to adjust the other stimulus packages and add new initiatives.
The salary compensation scheme
In order to continue protecting Danish employees and companies facing financial difficulties during the corona crisis, the Government and the two sides of industry, the Danish Trade Union Confederation (FH) and the Confederation of Danish Employers (DA), have agreed to extend the three-partite agreement on temporary salary and wage compensation by one month. As a result the scheme will apply up to and including 8 July 2020.
In addition, the salary compensation scheme will be adjusted to the effect that the possibility of receiving salary compensation for employees working in flexi-jobs is the same, regardless of whether such employees are covered by the old or the new flexi-job scheme.
In order to receive salary compensation for the extended period, the companies must re-apply to the Danish Business Authority for an extension with respect to the period from 9 June - 8 July 2020.
Read the conditions for receiving salary compensation in Plesner's previous Insight here:
"Coronavirus - Temporary scheme on salary compensation for private companies"
Other extensions and new initiatives
The Government and all parliamentary parties have further agreed to adjust the other stimulus packages and add new initiatives, including the following:
- The scheme concerning compensation of overheads is extended up to and including 8 July 2020 and extended possibilities of receiving compensation are introduced.
- The compensation scheme covering self-employed persons and freelance workers is extended up to and including 8 July 2020 and the compensation percentage is increased. In addition, a new compensation scheme covering freelancer workers with a mix of A and B income is set up.
- The deadline for payment of payroll tax for the 2nd and 3rd quarter is extended for some professions.
- Likewise, the hour requirement for accrual of senior premium, 1,560 hours of employment in the course of 12 months, is reduced equivalent to 4 months.
- Suspension of the calculation of the length of the period of unemployment benefits, the temporary extension of the right to sickness benefit and suspension of G-days are extended up to and including 30 June 2020.
On top of this, the parties have agreed to examine whether it will be possible to find a solution for persons who are in a special risk group in terms of infection with COVID-19 due to underlying health issues and therefore have difficulties making a physical appearance in the workplace.
Read the fact sheet on other extensions and new initiatives here: Fact sheet