Coronavirus update: The Danish Government has just announced a new business relief program applicable for self-employed workers and a business relief program to compensate business for their fixed expenses

The Government is now presenting further two temporary business relief programs:  

Compensation for businesses’ fixed expenses

In addition to the tripartite agreement (salary compensation program), the government is now suggesting also covering fixed business expenses for companies who no longer have earnings to cover such expenses.

 The compensation is based on the following principles:

 1. Businesses across all industries may be entitled to receive compensation

2. The compensation is targeted towards businesses with a reduction in turnover in Denmark of more than 40 percent

3. The compensation is targeted towards  fixed expenses and equals 25 to 80 percent of such expenses

4. The compensation covers up to three months and is paid as soon as possible.

5. If the turnover is reduced considerably less, the compensation must be repaid

 Compensation for the self-employed

The self-employed are not directly covered by the tripartite agreement on wage compensation that was presented earlier this week, and the government is therefore proposing a compensation scheme for the self-employed in order to provide compensation to the self-employed, who experience large declines in their earnings.

The scheme means that the self-employed who experience more than 30 percent decrease in earnings as a result of COVID-19 virus may be compensated.

The compensation amounts to 75 percent of the loss of earnings, however a maximum of DKK 23,000 per month corresponding to the rates in the wage compensation scheme for salaried employees agreed in the tripartite agreement. The compensation may amount to up to DKK 34,500 per person per month, if the self-employed has a spouse employed.

Self-employed or small businesses can receive maximum compensation for three months from 9 March until 9 June. It is a requirement that the company has no more than 10 full-time employees.