What is an unemployment insurance fund?

© Dennis Morton

Del artikel:

In Denmark, in order to secure yourself in case of unemployment, you have to purchase your own insurance through a private unemployment insurance fund.

Job-seekers receive unemployment benefits (dagpenge) from the unemployment insurance fund (a-kasse) along with counselling to help them find a job.

All employees in Denmark pay a labour market contribution (AM-bidrag) of 8 percent. The unemployment benefits are paid for by this tax and the membership fee to the unemployment insurance fund.

Why should you join an A-kasse?

The number one reason why you should join an unemployment insurance fund is to receive unemployment benefits if you lose your job. The alternative to unemployment benefits is the universal cash benefit system (kontanthjælp). However, you may not have savings or assets of more than 10,000 kroner in order to accept cash benefits.

Important rules about the a-kasse system

But there are other reasons why it is a good idea to join an unemployment insurance fund. As a student member of MA (Magistrenes A-kasse), you are entitled to professional, study, and career counselling from the first day of your membership. That could prove useful if you need:

  • A student job
  • To assess your skills and competencies
  • To write your CV and applications
  • To learn about job opportunities relevant to your education

2-week rule

To ensureyour rights to unemployment benefits you have to join an unemployment insurance fund no later than two weeks after completing your education. If you wait until graduation to become a member you will have to wait one month in order to be considered eligible for unemployment benefits. To avoid that, look under "1-year rule".

1-year rule

If you have been a student member of an unemployment insurance fund for at least one year, you are entitled to unemployment benefits the day after you complete your education.

Graduate rate benefits

No dependent children:

14.106 kr. the first three months (before tax).

After three months: 9.700 kr. per month if you are under 30 years, 12.253 kr. per month if you are over 30 years.

With dependent children:                                                  

16.177 kr. per month (before tax).

Rates apply from May 1, 2023.

Payment of benefits

MA will pay unemployment benefits once a month, so you will receive the amount on your account on the last work day of each month.

Join DM and MA

If you're a student, your DM membership is free the first year. After the first year your DM membership costs 20 DKK per month.

MA is free throughout your time as a student, as long as you're younger than 30.