If you’re working in Denmark as a foreigner, one of the smartest financial decisions you can make is to make sure of having income protection insurance in Denmark. Life is unpredictable, layoffs happen, and so do periods of unemployment. Without a safety net, a sudden loss of income can quickly become a major stressor, and that is especially the case if you are trying to build a life in a foreign country. While traditional income protection insurance exists in Denmark, a more popular and affordable option for most workers is joining an A-kasse.
A-kasser (short for arbejdsløshedskasse or unemployment insurance funds) offer a public-private system of income protection. They ensure that if you lose your job, whether due to economic downturns, company restructuring, or other reasons, you can receive monthly unemployment benefits while you search for your next opportunity. For many, especially those without deep roots or support networks in Denmark, an A-kasse is not just a bureaucratic requirement, but a peace of mind.
In this guide, I’ll help you understand how income protection insurance in Denmark works, and provide you all the information you need to find the right insurance for your needs.
If you are looking for a more detailed guides on different types of insurances related to unemployment in Denmark, you may want to check out my other guides, where I cover these topics in detail:
How Income Protection Insurance in Denmark Works
In Denmark, income protection during periods of unemployment is most commonly handled through a system of unemployment insurance funds known as A-kasser. While private income protection insurance in Denmark does exist, it’s relatively rare and often unnecessary thanks to the strong social support structures already in place. For most workers, especially foreigners adjusting to life and work in Denmark, joining an A-kasse is the most accessible and reliable way to protect your income.
An A-kasse is a member-based system that offers financial support if you lose your job. By paying a monthly membership fee (typically between 500 and 600 DKK), you gain the right to receive dagpenge, which is the monthly unemployment benefits in Denmark, provided you meet a few basic conditions. These include being a member for at least 12 months and having worked a minimum number of hours during that time. The benefit amount depends on your previous salary and can reach up to approximately 90% of your income, though there is a cap.
Unlike private income protection insurance in Denmark, A-kasser are integrated with Denmark’s labor market policies and provide not just financial support, but also help with job-seeking, training, and career counseling. For this reason, many people view them as both a safety net and a long-term career resource.
In short, while traditional income protection insurance is available, A-kasser are the most common and practical solution in Denmark, particularly for foreigners who want to secure their income and stay resilient in a competitive job market.
Who Should Consider Income Protection Insurance in Denmark?
Income protection insurance in Denmark, whether through an A-kasse or private coverage, is generally a smart move for anyone who relies on their income to live in Denmark. But I would say that the right option depends on your job type, employment status, and how long you’ve been in the country.
Employees on full-time or part-time contracts: If you’re working for a Danish employer and paying taxes, joining an A-kasse is the most straightforward and affordable way to secure income protection. After 12 months of membership and meeting basic work requirements, you become eligible for monthly payouts if you lose your job. Plus, A-kasser often offer job search support and guidance in English, which is particularly valuable if you’re new to the Danish labor market.
Newcomers to Denmark: While you won’t be eligible for payouts right away, it’s smart to join an A-kasse as soon as you start working in Denmark. You’ll begin building up the required membership period immediately, which can make a big difference if you find yourself unexpectedly unemployed down the line.
Self-employed individuals and freelancers: A-kasser do offer options for self-employed people, but coverage and eligibility can be more complex. In these cases, some may prefer to add a private income protection insurance policy for extra security, although these often involve stricter requirements, including health checks and longer payout waiting times.
High-income earners: Because A-kasse payouts have a cap (just over 19,000 DKK/month in 2025), those with higher salaries may want to combine A-kasse membership with a private policy to maintain their standard of living in case of unemployment.
People with dependents: If you support a family or pay high fixed expenses like a mortgage, income protection is even more important. A-kasse membership can offer crucial stability while you look for your next role.
In short, if you’re living and working in Denmark, income protection through an A-kasse is worth considering for nearly everyone, and especially important for foreigners still getting established in the country.
What to Look for in an Income Protection Insurance
Whether you’re considering joining an A-kasse or exploring private income protection options, it’s important to know what actually matters in terms of coverage, support, and long-term value. Below, you’ll find a simple comparison of key features to consider. While A-kasser are typically more affordable and accessible for foreigners in Denmark, private insurance may be worth exploring in some cases, especially if you’re self-employed or earn above the A-kasse compensation ceiling.
| Feature | A-kasse (Unemployment Insurance Fund) | Private Income Protection Insurance |
|---|---|---|
| Eligibility | Must be working and resident in Denmark | Often requires full health check and risk assessment |
| Waiting period for payout | Typically 12 months of membership + work requirements | Can vary from 1–3 months or more |
| Monthly cost | ~500–550 DKK (tax-deductible) | Varies widely; often higher and not tax-deductible |
| Max payout | Up to ~19,728 DKK/month (2025 rate) | Based on income; often higher than A-kasse limits |
| Support services | Career coaching, CV help, job matching | Often none or limited |
| Language accessibility | Many A-kasser offer English support | Often Danish-only documentation |
| Best for | Most employees and new residents | High-income earners, some self-employed |
As the table shows, A-kasser are generally the most straightforward and cost-effective choice for foreign workers in Denmark, especially if you’re looking for both financial protection and hands-on support navigating the local job market.
If you are still unsure which option suits you best, you may want to take a look at my guide on the best A-kasser in Denmark, in which you’ll find my top suggestions.
Overall, however, I recommend the following A-kasser in Denmark:
If you’re a professional who values long-term career development, the career-focused A-kasse is a great match, as it’s designed to support you both during unemployment and throughout your career journey. For those who prioritise affordability, the budget-friendly A-kasse delivers the most essential coverage at a very competitive price, which makes it ideal if you’re looking for value without extra frills. If your focus is on a healthy work-life balance and supportive values, I highly recommend the wellbeing-oriented A-kasse – it’s my personal favourite for its member-first approach. The core-benefits A-kasse offers a no-fuss experience, perfect for anyone who just wants the basics done right. And if you’re self-employed or running a small business, the entrepreneur-friendly A-kasse gives you the flexibility and tools you’ll need to navigate work on your own terms.
FAQ About Income Protection Insurance in Denmark
Do I need both an A-kasse and private income protection insurance?
Not necessarily. For most foreigners working in Denmark, an A-kasse provides sufficient coverage — and includes additional benefits like job search support. Private insurance may be useful if you earn significantly above the A-kasse cap or work in very niche industries.
How much can I receive from an A-kasse if I lose my job?
As of 2025, the maximum monthly benefit is around 19,728 DKK before tax. This is roughly 90% of your previous salary, but only up to a fixed ceiling.
Is A-kasse membership tax-deductible?
Yes, the monthly fee (around 500–550 DKK) is tax-deductible in Denmark. That means your actual cost is lower after taxes.
Can foreigners join any A-kasse?
Yes! A-kasser are open to foreigners who legally reside and work in Denmark. Some A-kasser are general, while others are tied to certain sectors or unions. Several offer full English support.
What happens if I leave Denmark after joining an A-kasse?
If you move to another EU/EEA country, you may be able to transfer your A-kasse rights. If you’re moving outside the EU, your membership ends, and benefits won’t be transferable.
Can freelancers or self-employed people join an A-kasse?
Yes, but only some A-kasser accept self-employed members — and rules can be stricter. If you’re freelancing, make sure to choose an A-kasse with specific support for your status.
When should I sign up for an A-kasse?
The earlier the better! If you wait until you’re unemployed, it’s too late to qualify for benefits. Ideally, register as soon as you start working in Denmark.
