Unemployment insurance is a voluntary scheme administered by the unemployment insurance funds. The Danish system thus differentiates between the situation for the unemployed insured persons and the unemployed uninsured persons.
The unemployment insurance funds are private associations of employees or self-employed persons organised for the sole purpose of ensuring economic support in the event of unemployment. Unemployment benefits are, however, largely financed by the State.
If you are a member of an unemployment insurance fund and become unemployed, you must register as unemployed at the Public Employment Service on your first day as unemployed and contact the Unemployment Insurance Fund.
In case you become unemployed and are not a member of an unemployment fund, you may be entitled to receive social benefits. The social benefits are administered by the municipalities. Therefore, if you want to receive social benefits you must contact your local municipality office.
The Act on Unemployment Insurance is administered by the Danish Agency for Labour Market and Recruitment which is a unit under the Ministry of Employment. The Danish Agency for Labour Market and Recruitment also administers questions related to:
- the Act on an Active Social Policy
- the Act on Benefits in the Event of Illness or Childbirth
- the Act on Partial Pension
- the Holiday Act
- the Act on Flex Benefits