Ultimate 2025 Guide to ‘A-Kasser’ and Unemployment Insurance in Denmark

This article explains the A-kasser system in Denmark and outlines the requirements workers must fulfill to qualify for unemployment benefits. Unemployment is a crucial part of the Danish flexicurity model, and you should seriously consider signing up. But first, read this article, and then decide for yourself, if ‘dagpenge’ is something you need.

Personally, I’m signed up in the A-Kasse called ASE. Click here to check out their offer, which I believe is the best on the market. If you want a comparison of all the A-kasser that manage the unemployment insurance in Denmark, then read this article: https://thedanishdream.com/best-a-kasse-in-denmark-for-foreigners/

Contents

Unemployment insurance in Denmark is managed by employment funds known as “A-kasser.” These funds provide financial support to individuals who lose their jobs, helping them maintain a basic standard of living. They are a vital part of Denmark’s social security system.

Expatriates are eligible for unemployment benefits under the same conditions as Danish citizens. To qualify for unemployment insurance, you must be a member of an A-kasse. Compared to other Western countries, the Danish system offers substantial and generous financial support. Finally, the role of publicly run “Jobcenters” is also explained.

What is A-kasser?

The A-kasser manages a collective insurance scheme designed to protect workers against unemployment. Members pay a monthly fee in the range of 400 DKK to 600 DKK, depending on the fund. In return, if a member loses their job, they are entitled to receive unemployment benefits.

It is a voluntary insurance-based scheme and not a universal welfare benefit provided by the state. Such as public pensions. So you are free to opt out of the insurance scheme. Meaning not paying the membership fee and thereby not being insured. Expatriates and workers coming from other countries – who are allowed to work in Denmark – are entitled to unemployment benefits under the same rules and benefits provided to Danish citizens.

Denmark has a total of 22 different A-kasser, each serving various professions and industries. Some are exclusive to specific professions, while 10 of them are interdisciplinary and welcome members from any field. Historically, A-kasser are connected to the labor movement and unions, but they operate as separate organizations. Therefore, being a union member is not required to receive insurance benefits from an A-kasse. For each profession, there are a few A-kasser that are particularly relevant. A complete list and descriptions of the 22 A-kasser, along with their monthly insurance fees, can be found at this link.

My recommendations for A-kasser

A-kasser follows the same rules when they manage ‘Dagpenge’. So, there are not that many differences between a-kasser. The price and service level might vary slightly, and also if they offer extra salary insurance.

I have both a-kasse and salary insurance with ASE, this is also the A-kasse that I will recommend you. I believe ASE is good value for money, because they have a special focus on entrepreneurs. They also offer a complimentary salary insurance.

Click on this link to learn more about their plans and prices.

But, I will also mention three other a-kasser that you can consider:

• Krifa
• CA
• Det faglige hus

(If you use the links above, I get a small commission with no extra cost to you. It helps support this page if you use my links. Thanks in advance!)

Members of an A-kasse get a lot of value from their membership.

A-kasser are private organizations and not public bodies. But they are largely financed by the state. Only 25% of the costs of running an A-kasse are financed by membership fees, and the remaining 75% of the funds come from the state. In comparison, if you buy an ordinary insurance from a private insurance company, it could be an insurance for a car or a house; there is no state funding provided. Therefore, workers get a lot of value for money from membership of an A-kasse. The membership fees paid on one hand provide high insurance benefits for the worker in case of unemployment on the other hand, when the state supports the scheme with 75% extra funds.

Each fund operates under government rules. And so the insurance amount provided to members is the same in all A-kasser.

How many of Danish workers are members of an A-kasse?

In Denmark, 2.253.659 workers are members of an A-kasse as of 2024. This is 73% of the total number of employees at 3 million plus 87.000 unemployed. The vast majority are full-time insured, and a small part are part-time insured. This reflects the structure of the Danish labor market, where most jobs are full-time employment. Around 62% of workers are members of a union. So some employees opt out of union membership and save the membership expense while staying insured by membership in an A-kasse. 

 What are the objectives of A-kasser?

• Providing financial insurance for the unemployed. The Danish labor market, often referred to as the Danish model, is characterized by high mobility among workers. They can smoothly shift between jobs, and so approximately 65% of the Danish workforce changes jobs at least once a year. This is a high turnover rate compared internationally. Unemployment insurance in Denmark acts as a safety net for workers, offering them a degree of financial security during employment transitions. More on this in this article: The Working Week in Denmark.
• Supporting Workforce Development. A-kasser also aims to maintain a skilled labor force by encouraging continuous skill development among the unemployed. Many A-kasser provide training and courses to help members improve their employability. 47% of job seekers reported that they participated in educational programs offered by their A-kasse. Unions and the “Jobcenters” (Employment centers in English) also offer relevant training and courses. Here you can also build upon your professional network. As the recruitment for many job vacancies is done by informal contacts and networks instead of traditional job postings, this is relevant for unemployed job seekers in many professions.
• Promoting Social Equity. Lastly, A-kasse fosters social cohesion by providing equitable support to all workers, regardless of their occupation. Whether a member is a professional, tradesperson, or student, the system is designed to support individuals through periods of unemployment. As described below, the system provides relatively more financial insurance for low-earning workers than for workers with higher salaries in previous employment. 

Amounts receivable and requirements for unemployment insurance in Denmark

The maximum amounts provided in different cases are shown in the table below. Thereafter, the requirements to be eligible for unemployment insurance is laid out.

Table: Unemployment insurance in Denmark – benefit amounts for 2024.

Note: The data is from The official amounts of unemployment benefit. The figures in brackets show the minimum salary in previous employment that is needed to receive the amount of unemployment benefit shown.

The benefit amounts in more detail.

• Unemployed people can get 90% of their previous salary in benefits, but with a maximum monthly amount of 20359 DKK per month. For the first 3 months of unemployment, it is possible to get up to 24.199 DKK. There is no minimum guaranteed amount. So if your earnings during the last 24 months have been low, you are still only entitled to get 90% of those earnings.
• Members of an A-kasse have a right to unemployment benefits for a maximum of two years in total within a 3-year period. 
• Besides ordinary employees, newly graduated and self-employed individuals are also entitled to unemployment benefits. Newly graduated are entitled immediately after completing their education (with no requirements for a previous working period). But the amounts receivable are also much lower. Self-employed persons can get the same amounts as ordinary employees, but under other eligibility criteria. 

Requirements workers must meet to receive unemployment insurance in Denmark

• You have been a member of an A-kasse for at least 1 year. To get the higher supplement benefit during the first 3 months of unemployment, it is required to be a member of an A-kasse for 4 consecutive years. Moreover, a total of 2 years of full-time work within the last 3 years is required to get this supplement.
• You must be registered with the local public Jobcenter, by meeting up personally or registering online at “jobnet.dk”. Contact your A-kasse and apply for benefits, or visit the website of the A-kasse to fill in the required information.
• You are free to work in Denmark (if you are a non-EU citizen, you need a general work permit, which is not limited to a certain job).
• You must actively look for a job and be able to accept job offers with one day’s notice. Being employed for a minimum of 12 months in the last 36 months.

Taxation of income from unemployment insurance in Denmark

All amounts reported here are before tax. Importantly, the labor market contribution of 8% does not apply, as this is only a mandatory tax for employed individuals. Further, the employment deduction at 10,65% can not be used as a deduction to taxable income as this deduction is only for employed persons. The monthly payment for unemployment insurance is between 400 DKK to 600 DKK, and is an allowed deduction from taxable income. In this link to a tax calculator, you can specify your personal deductions and incomes, such as unemployment benefits, and calculate the received income after tax. Tax calculator in English. And also read more about Danish income taxes in this article: Income taxes in Denmark

Insurance benefit under maternity leave

You can get a full salary from your employer under maternity leave if this is agreed upon in your employment contract or settled in collective agreements that you are covered by.

Otherwise the financial insurance is provided by the public sector. And the amount receivable per month is the  same as for unemployment insurance (maximum of 20359 DKK). To be eligible you must meet the requirements for receiving unemployment benefit and the other rules governing this area. This is described further here: Rules and benefits under maternity leave.

Insurance benefit under sickness

The maximum amount receivable per month is again the same as for unemployment insurance in Denmark (20359 DKK). You must have been employed for at least 8 weeks before you are entitled to sickness benefit payment. The first month it is the employer who makes the payment to the person under sickness. Thereafter the benefit is paid by the municipality. You can get the sickness benefit for 22 weeks within 9 months. Thereafter shall the municipality assess the situation of the person and decide if sickness pay shall continue.

Workers get a relatively high compensation of previous income from unemployment insurance in Denmark.

To get an impression of the real compensation provided by unemployment insurance in Denmark, the benefit amounts shall be related to the salary levels in Denmark. The salaries levels to expect in Denmark is described further in this article: Salaries in Denmark – an overview.

This is taken into account by the so-called degree of compensation. It measures unemployment benefits as a share of salaries in previous employment. 

The degree of compensation (measured after tax) for low-earning workers is 88% in Denmark compared to the average in OECD at 77%. This is the 3rd highest degree of compensation among the 38 OECD countries, according to data from OECD as of 2021. For average-earning workers, the degree of compensation is 73% in Denmark and 70% on average among OECD countries. So the unemployment insurance in Denmark is quite generous financially compared to other Western countries. Degree of compensation in OECD countries.

Most unemployed persons can make ends meet by unemployment insurance in Denmark.

Over time, the degree of compensation in Denmark has been falling. The yearly increases in benefit amounts set by the government haven’t quite matched the development of wages in the labor market. 

Furthermore, there is generally a low risk of getting unemployed in these years. There is full employment in the Danish economy, and the unemployment rate is around 3%. This can lead to more workers leaving the A-kasser and the unemployment insurance system. 

But most unemployed persons can make ends meet in their monthly budgets when living on unemployment benefits. Perhaps with some adjustments in the consumption behavior and expenses, they had during their previous employment. And when compared internationally, the unemployment insurance in Denmark is still quite generous.

Some employees choose to buy a supplementary salary insurance

With a maximum amount of receivable insurance benefit per month, the unemployment insurance in Denmark will generally provide a higher degree of compensation for low-salaried workers than for workers with higher salaries in their last employment. So when your monthly salary exceeds 25459 DKK before tax (without the extra supplement benefit for the first 3 months included), your degree of compensation starts to fall because of the maximum amount receivable of 20359 DKK in unemployment benefit.

This has led to the spread of supplementary salary insurances offered by A-kasser. And also private salary insurances offered by insurance companies in partnership with unions. These supplementary schemes vary as on specific conditions and the insurance amounts provided. 362.000 workers have a supplementary salary insurance in Denmark as of 2023. 

An example of an supplementary salary insurance scheme

The unions DJØF (for lawyers and economists) and IDA (for engineers) have, in cooperation with the insurance company Topdanmark, made a supplementary scheme where members can get 90% of their previous salary up to 40.000 DKK in guaranteed monthly pay before tax. Included in this figure is the ordinary monthly unemployment benefit (20,359 DKK).

The insurance fee for 12 months of coverage is 574 DKK per month. The insurance fee can be deducted from your taxable income, and so the fee after tax is around 393 DKK. You can choose to only get the guaranteed insurance pay for 6 months instead. The monthly fee will then be 430 DKK before tax and 294 DKK after tax. For a lower guaranteed salary insured than the maximum 40.000 DKK, the monthly insurance fee will be lower. Employees must pay the insurance fee for a period of 6 months before they are covered by the supplementary insurance.

In the supplementary schemes offered by A-kasser, the monthly fee is typically around 150 DKK – 200 DKK, and the guaranteed monthly pay is lower than in the example above.

The “Jobcenters” are the primary point of contact for unemployed workers

The most important task for a jobcenter is to help the unemployed back in work and advise the unemployed about relevant courses and education. They are run by the municipalities with one jobcenter in each municipality and carry out the public employment effort at the local level. Together with A-kasser, it is the first and most important point of contact for the newly unemployed. Another important task is to monitor and decide if the unemployed fulfills the requirements for unemployment benefit and in particular if he is available for the labor market and actively seeking jobs. 

The jobcenters also operate the job portal “jobnet.dk” . The unemployed can get help and training in using jobnet.dk such as uploading CV and how to navigate the website etc. All job postings for the public sector are registered at jobnet.dk as well as many job postings for the private sector. And is a very relevant job search tool for many unemployed workers.

Conclusion

Unemployment insurance in Denmark is administered and paid to the unemployed by the so-called A-kasser. Members of A-kasser are entitled to monthly unemployment benefits for 2 years. It is possible to get 90% of your previous salary with a maximum monthly amount specified. Expatriates and workers coming from other countries – who are allowed to work in Denmark – are entitled to unemployment benefits under the same conditions as Danish citizens. To be eligible, you must be a member of an A-kasse and pay the monthly insurance fee. And also being employed for 12 months in the last 3 years and actively seeking new jobs.

The financial insurance provided for workers in Denmark is among the highest among OECD countries, especially for workers with low salaries in previous employment. For workers with higher salaries, the system doesn’t offer the same degree of income compensation. This has led to the spread of supplementary salary insurance schemes. But most workers (73% of all workers) choose to pay for membership of an A-kasse and being insured. The risk of getting unemployed due to economic recession is generally low, and the unemployment rate is around 3%. But at the same time, as many as 65% of workers shift to a new job once a year. This can be driven by their personal aspirations or the changing needs of employers. Unemployment insurance can offer them a degree of financial security during such employment transitions. So the unemployment insurance by A-kasser is still a cornerstone in the social security system in Denmark.

Most unemployed persons can make ends meet in their monthly budgets when living on unemployment benefits. Often, with some adjustments to be made in consumption behavior and lifestyle, as compared to what was achievable in their previous employment. 

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Steen Andersen

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