Wage and salary compensation during the COVID-19 pandemic


  • 75% of the monthly salary – yet no more than DKK 30,000 a month
  • 90% of the hourly pay – yet no more than DKK 30,000 a month
  • Covers the period 9 March to 9 Jule 2020
  • May also be used in connection with a temporary decline in salary or wage
  • For further compensation, please submit a new application
  • Possibility of calling an employee back to work although he is subject to wage or salary compensation


  • At least 30% or more than 50 employees must have been sent home
  • Full salary or wage to be paid to the employees while being at home
  • Employees sent home are not allowed to work during the period in question. However, the employer may call his employees back to work at one day’s notice
  • No employees may be laid off during the compensation period
  • 5 holidays must be held or time-off taken in lieu of overtime by employees who have been sent home. In case of a decline in salary or wage, the employee, however, is not required to contribute 5 holidays
  • Employees must have been hired before 9 March 2020
  • The business owner and CEO are not covered by the package


  • Will be registered with a civil registration number
  • Documentation for having sent employees home
  • Requirement of a subsequent auditor’s report
  • In case of an extension of the period from 9 June to 8 July 2020, please submit a new application to the Danish Business Authority


Valby: +45 3345 1000 | Odense: +45 6613 0730 | Mail: info@bakertilly.dk

Baker Tilly eksempel

Q&A (updated on 23 April 2020)


Q: Extension of the wage or salary compensation period. Does the business have to do anything?

A: The compensation package originally covered the period 9 March to 8 June 2020, but on 18 April 2020, the Danish government and the social partners agreed on extending the period until 8 July 2020. As a business, please file a new application if you wish to extend your compensation period and have already filed an application to that effect before it became possible to file an application for an extension.


Q: Are foreign employees covered, say sellers posted outside Denmark but whose wage or salary is paid from Denmark?

A: Foreign employees working outside Denmark are subject to foreign social security irrespective of whether they have an employment contract with a Danish business. (The employee has no ties to Denmark) and may therefore not be covered by the rescue package.


Q: As for the possibility of sending employees home, cf. Horesta, does this apply to everyone within the restaurant business?

A: The agreement applies to businesses which are members of HORESTA Arbejdsgiver and which are covered by the collective agreement between HORESTA Arbejdsgiver and 3F, Privat Service, and the Danish hospitality business.


Q: Are trainees also covered by wage or salary compensation and included in the calculation related to employees being sent home?

A: Trainees and apprentices may also be paid wage or salary compensation but as opposed to ordinary employees, trainees and apprentices must continue working - however, a business cannot be run exclusively with the help of apprentices.


Q: If apprentices and trainees are not sent home, they must be included in the list of those exceeding 30%

A: Trainees and apprentices may also be paid wage or salary compensation.


Q: Is the principal shareholder also being paid wage or salary compensation and included in the calculation related to employees being sent home?

A: The principal shareholder and business owners with a considerable ownership stake of 25% or more are not covered by the compensation.


Q: How does the taking of holidays affect the possibility of being granted compensation?


- If the employee has planned a holiday, he or she can still take this holiday, which implies that the employee takes his or her holiday during the compensation period instead of being sent home.

- If the employee is already on holiday, you may send him or her home right after his or her holiday.

- In case of a notified or planned holiday before your business becomes subject to wage or salary compensation and in case these holidays have been taken prior to becoming covered by the package, your employee will not be able to take these holidays during the compensation period.

- Holidays notified before becoming subject to wage or salary compensation and which extend to the compensation period may be taken by the employee as a holiday in connection with the required five holidays to be taken while being compensated for wage or salary.


Q: May we submit an application on behalf of our clients?

A: No. The business applying for compensation must log in using its own NemID.


Q: Can an employee be called back to work during the compensation period?

A: Yes, and on submission of the application, you may indicate for how many days the employee is to be called back to work during the compensation period. It will also be possible to call the employee back to work irrespective of whether this was planned when filing the application. The compensation will then be reduced accordingly and have to be paid back. However, please note that in case of calling an employee to back work, the requirements of 30% or 50 employees still have to be met. If the limit is exceeded, documentation will subsequently have to be provided as to why it was necessary to call fewer employees back to work during the period in question, e.g. because of illness or a large order.


Q: How many holidays will the employee be required to take?

A: The employee must take a proportionate number of the five holidays if the period is shorter than three months. If say an application for one month of wage or salary compensation is filed, the employee will be required to contribute 1.67 days.


Q: Will a business be able to be paid wage or salary compensation for the days contributed by its employees?

A: All paid days not worked during the period of being sent home, including paid holidays are covered by the compensation package.


Q: How will the basis for compensation be assessed?

A: The assessment of compensation will be based on the employee’s actual wage or salary (including holiday pay, ATP (Danish Labour Market Supplementary Pension) and pension contributions). The Danish Business Authority will base its calculation on the average wage or salary from E-indkomst. The compensation may exceed the proposed average wage or salary as the compensation to be paid out will correspond to the actual wage or salary (the one paid out) for the period March to June.


Q: How will the 30% or 50 employees be determined?

A: The number of employees is what is important, not the full-time equivalents.


Q: Does the company have to send at least 30% or 50 employees home during the entire period?

A: No, but the conditions must be fulfilled at the time filing the application. It is of no importance if the conditions change so that the group of employees sent home no longer accounts for at least 30% or 50 employees if say the employees are called back to work or resign.


Q: Will a business be able to derogate from the rule of having to send an average of 30% or more than 50 of its employees home while being compensated?

A: Yes, the business may derogate from the rule in the following situations:

  • If some of its employees being sent home resign
  • If the business is forced to call employees it has sent home back to work for a temporary period of time due to unexpected operational needs resulting from for instance extra incoming orders
  • 16.

    Q: Can a business make use of rotation in terms of letting employees take turns to work or be sent home?

    A: Yes, this is possible if the business makes sure that it meets the requirement of sending an average of at least 30% or more than 50 employees home during the entire compensation period.

    These are examples of working according to a rotation scheme:

  • The business may split employees into different groups. Each group will only be working for a limited period of time during the compensation period after which it will be replaced by a second group and then by a third, etc.
  • In addition, the business may assign a specific number of employees to this rotation scheme with the intention of having the employees at home not working for say three days a week and then working the remaining two days.

  • 17.

    Q: If as a business you have already made use of the compensation package and sent your employees home, will it then be possible to convert the scheme into a rotation scheme with employees taking turns to work?

    A: Yes, this will indeed be possible, but the business will have to file another application.


    Q: Can an additional number of employees be sent home during the period in question?

    A: Yes, but this requires the filing of a new application for wage or salary compensation.


    Q: How will the compensation be paid out?

    A: The compensation will be paid into NemKonto when the Danish Business Authority has approved the documentation requirements.


    Q: Are part-time and fixed-term employees covered by the rescue package?

    A: Yes, they form part on equal terms and count fully in the number of employees.


    Q: Is occasional staff part of the rescue package?

    A: Occasional staff on call is not covered by the rescue package. It is important for the assessment of whether employees have a permanent connection that he or she can demand a certain number of hours a week or month in accordance with the general rules to that effect.


    Q: Why is the total number of employees listed when the clients log in and apply for compensation - also those who are not to be compensated?

    A: The information is retrieved directly from Eindkomst and does not at the moment form part of the calculation with respect to the 30% or 50 employees.


    Q: Can a business dismiss employees during the compensation period if the situation deteriorates?

    A: Yes, a business may dismiss its employees. If so, it will no longer be entitled to compensation as at the time of giving such notice. The business will not be required to pay back compensation for the period prior to giving notice of dismissal but it will have to pay back any excess compensation plus interest.