Sygedagpenge / Sickness benefit Denmark

Sygedagpenge is the official sickness benefit Denmark provides to workers who are unable to perform their jobs due to illness or injury. It functions as a financial safety net designed to replace lost income when you do not receive your regular salary from an employer. Understanding how this system works is highly important for foreign workers and expats navigating the Danish labor market for the first time.

In the Danish system, the responsibility for paying you during an illness is split between your employer and your local municipality (kommune). Your employer is typically responsible for the first 30 days of your sick leave Denmark requires. After this initial period, the municipality takes over the financial responsibility and begins paying out the sickness benefit directly to you or as a reimbursement to your employer.

Your specific rights depend heavily on your employment contract. Some workers receive their full regular salary during their entire sick leave, while others only receive the basic municipal sickness benefit. The amount you receive is calculated based on your previous hourly wage and the number of hours you normally work, capped at a maximum weekly rate determined by the Danish state.

The rules governing this benefit are strict. You must meet specific employment requirements, report your illness correctly, and actively cooperate with the municipality regarding your recovery and return to work. Failure to follow the official procedures can result in a complete loss of your financial support during your illness.

Danish Terminology: Sickness and Labor Market Terms

Danish TermEnglish TranslationBrief Explanation
SygedagpengeSickness benefitFinancial compensation paid by the municipality when you are ill and unable to work.
SygemeldingSick leave notificationThe formal process of reporting yourself sick to your employer or the authorities.
KommuneMunicipalityThe local government authority responsible for processing and paying your sickness benefits.
BeskæftigelseskravEmployment requirementThe minimum number of hours you must have worked to legally qualify for the benefit.
LægeerklæringMedical certificateA doctor’s note that your employer or the municipality may request as proof of your illness.
NemRefusionDigital reimbursement systemThe digital portal employers use to report employee illness to the municipality.
Sygedagpenge Sickness benefit Denmark

Understanding these specific Danish terms is essential for expats, as all official communication from the municipality and your employer will utilize this vocabulary. When you fall ill, the process involves multiple digital systems, and knowing the difference between a sygemelding and sygedagpenge ensures you understand what is required of you.

The terminology also highlights the division of responsibility in Denmark. While your doctor provides the medical assessment (lægeerklæring), it is the local municipality (kommune) that ultimately decides if you meet the legal requirements (beskæftigelseskrav) to receive financial support. You must interact with both entities independently to secure your rights.

How Sickness Pay Works Under the Danish Model

To understand your rights during illness, you must understand “The Danish Model” (Den Danske Model). In Denmark, the labor market is largely regulated by agreements between trade unions and employer associations rather than by strict national legislation. This means there is no universal law dictating a statutory minimum wage or universal rights to full pay during sickness for all workers.

Instead, your rights are often determined by a Collective Agreement (Overenskomst). If your workplace is covered by a Collective Agreement, this document will specify exactly how long your employer must pay your full salary when you are sick. Hourly paid workers, such as those in construction, hospitality, or manufacturing, rely heavily on these agreements for their sick pay rights.

If you are a white-collar worker, you are likely covered by the Salaried Employees Act (Funktionærloven). This specific law grants salaried employees the legal right to receive their full normal salary during illness from day one. If you fall under this act, you do not need to worry about the municipal sickness benefit rate, as your employer must pay your regular wage regardless of how long you are sick.

When an employer pays your full salary during a long-term illness, they will apply to the municipality for a sickness benefit reimbursement (sygedagpengerefusion). The municipality pays the basic benefit rate to the employer, and the employer covers the difference up to your full salary. This happens automatically behind the scenes, provided you fill out the necessary digital forms sent to you by the municipality.

A-kasse vs. Fagforening: Who Helps When You Are Sick?

Foreign workers often confuse the roles of an A-kasse (unemployment insurance fund) and a Fagforening (trade union) when dealing with illness. It is vital to understand that these two organizations serve completely different purposes in the Danish labor market, especially regarding sickness benefits.

An A-kasse is strictly responsible for paying out unemployment benefits. To receive money from an A-kasse, you must be healthy, actively seeking work, and available to take a job with one day’s notice. If you become ill, you are no longer available for the labor market. Therefore, the A-kasse will immediately stop your payments, and you must transition to receiving sickness benefits from the municipality.

A Fagforening, on the other hand, provides legal protection and advice. If your employer unlawfully refuses to pay your salary during your illness, or if they attempt to fire you illegally while you are sick, your A-kasse cannot help you. You need a trade union to step in. The union provides lawyers and legal experts to negotiate with your employer and ensure your contractual rights are upheld.

If you are called in for meetings at the municipality regarding your long-term sick leave, a trade union representative can also accompany you as a support person (bisidder). They ensure the municipality follows the law and does not unfairly terminate your sickness benefits before you are medically ready to return to work.

Eligibility Criteria for Sygedagpenge

You do not automatically receive sickness benefits simply because you live in Denmark and have a doctor’s note. You must meet the official employment requirement (beskæftigelseskrav). This requirement proves your active attachment to the Danish labor market prior to your illness.

For regular employees, you must have been employed continuously for the latest 8 weeks before your illness began. Furthermore, you must have worked a minimum of 74 hours during this specific 8-week period. If you meet this criteria, your employer is legally obligated to pay you for the first 30 days of your sick leave.

To receive sickness benefits from the municipality after the first 30 days, a different rule applies. You must have worked at least 240 hours within the last 6 completed calendar months prior to your illness. Additionally, in at least 5 of those 6 months, you must have worked a minimum of 40 hours per month. This rule ensures that only active contributors to the labor market receive the benefit.

If you are a freelancer or self-employed, the rules are different. You must have run your business for at least 6 months within the last 12 months, including the latest month prior to your illness. You must also have generated a specific minimum income from your business to qualify for compensation.

Step-by-Step: How to Claim Sickness Benefits

Step 1: Report Sick to Your Employer

The very first step is to formally notify your employer that you are ill. This must usually be done within the first two hours of your normal working day, though your specific contract may state otherwise. You must follow your workplace’s official procedure, whether that means calling a manager directly or using an internal digital system. Sending a casual text message is often not considered a valid notification.

Step 2: The Employer Reports to NemRefusion

If your illness lasts longer than 30 days, your employer must report your absence to the municipality using a digital system called NemRefusion. If you do not receive your salary during illness, your employer must report your absence within 14 days of your first sick day. This action triggers the municipality to start processing your case.

Step 3: Check Your Digital Post

Once your employer registers your illness, the municipality will automatically send a notification letter to your secure Digital Post (accessible via e-Boks or mit.dk using your MitID). It is crucial that expats check their Digital Post regularly. Missing a deadline in this system is the most common reason foreigners lose their right to sickness benefits.

Step 4: Fill Out the Information Form

The letter from the municipality will contain a link to a digital form (oplysningsskema). You must fill out this form to confirm your illness, provide details about your expected recovery time, and formally request the sickness benefit. You typically have an 8-day deadline to complete and submit this form. If you miss this deadline, your benefits will be delayed or permanently denied.

Step 5: Attend Municipal Follow-Up Meetings

If your illness is long-term, the municipality will assign a caseworker to you. You are legally required to participate in follow-up meetings (opfølgningssamtaler). The purpose of these meetings is to assess your ability to return to work, either part-time or full-time. You must cooperate with the municipality’s efforts to help you return to the labor market.

What Happens if You Get Sick While Unemployed?

If you are currently unemployed, you might wonder what is dagpenge going to do if you fall ill. Dagpenge is the standard unemployment benefit. Because you must be available for work to receive dagpenge, you cannot legally receive it while sick. You must transition to the municipal sickness benefit system.

To do this, you must log in to Jobnet on your very first day of illness and register yourself as sick. This digital registration automatically notifies both your A-kasse and your local municipality. Your A-kasse will immediately pause your unemployment benefits for the duration of your illness.

Because you are unemployed, the municipality takes over the financial responsibility from day one. You will receive a letter in your Digital Post from the municipality, which you must fill out to activate your sickness benefits. The financial rate you receive from the municipality will generally match the exact rate you were receiving from your A-kasse.

When you are healthy again, you must immediately log back into Jobnet and register yourself as recovered (raskmeldt). This action stops the sickness benefits and reactivates your unemployment benefits. You must also inform your A-kasse directly that you are ready to accept job offers again.

Sickness Benefits for International Students

International students in Denmark face a unique set of rules regarding sickness benefits. If you receive the Danish state educational grant (SU), you are generally not entitled to receive municipal sickness benefits at the same time. The SU system has its own rules for students who experience prolonged illness, allowing them to apply for extra SU portions instead.

However, many international students work part-time jobs alongside their studies. If you have a student job and meet the standard employment requirement (working 240 hours in the last 6 months), you may be entitled to sickness benefits based specifically on your lost wage income. This only covers the hours you were scheduled to work at your part-time job.

If you get sick, you must report it to your employer just like any other worker. If your employer does not pay your salary during illness, you can apply for sickness benefits from the municipality for your lost working hours. You must clearly document your scheduled shifts and your hourly wage to receive the correct compensation.

It is important to note that receiving sickness benefits for a part-time job does not affect your right to receive your regular SU, as long as you remain enrolled and active in your study program. The two systems operate independently in this specific scenario.

Common Misconceptions and Pitfalls for Expats

Vacation Pay (Feriepenge) During Sickness

A major misunderstanding among expats involves feriepenge (holiday allowance). You cannot legally be on vacation and be sick at the same time. If you fall ill before your scheduled vacation begins, you have the right to cancel your vacation and receive sickness benefits instead. If you fall ill during your vacation, you must report it to your employer immediately to save your remaining vacation days. You do not earn standard employer-paid feriepenge while receiving municipal sickness benefits.

The 120-Day Rule

Many foreigners believe they cannot be fired while on sick leave. This is false. In Denmark, you can be terminated while sick. Furthermore, if you are covered by the Salaried Employees Act, your contract may include the “120-day rule” (120-dages reglen). This rule allows your employer to fire you with a shortened notice period of just one month if you have received sick pay for 120 days within a consecutive 12-month period. The termination must happen immediately after the 120th day while you are still sick.

Traveling Abroad While Sick

You are generally not allowed to travel outside of Denmark while receiving sickness benefits. The benefit requires you to be available for medical treatments and municipal follow-up meetings in Denmark. If you travel abroad without prior written permission from your municipality, your benefits will be stopped immediately, and you may be forced to repay the money you received while away.

Labor Market Contribution (AM-bidrag)

When you look at your Danish payslip, you will usually see an 8% deduction called AM-bidrag. This is a mandatory tax on all labor income. However, municipal sickness benefits are classified as transfer income (overførselsindkomst), not labor income. Therefore, you do not pay the 8% AM-bidrag on the sickness benefits paid directly by the municipality. You will only pay standard A-tax on this amount, which can make your net payout look slightly different than your regular salary.

Ignoring the Municipality

The most critical pitfall is ignoring communication from the municipality. Some expats assume that providing a doctor’s note to their employer is the end of the process. It is not. The municipality requires active participation. If they ask you to fill out a form, attend a meeting, or participate in a work-capability test, you must comply. Refusing to cooperate or missing deadlines will result in an immediate stop to your financial support.