Ministry of Employment. Denmark. DENMARK S 42nd REPORT ON THE APPLICATION OF THE EUROPEAN CODE ON SOCIAL SECURITY
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1 Ministry of Employment Denmark DENMARK S 42nd REPORT ON THE APPLICATION OF THE EUROPEAN CODE ON SOCIAL SECURITY Covering the period 1 July June 2015
2 GENERAL The Danish Government has set up a commission on unemployment insurance benefits. The unemployment insurance scheme is a corner stone in the Danish labour market model. A strong unemployment insurance scheme has contributed to establishing a flexible labour market with high mobility and has together with general labour market policies contributed to providing financial security and to creating growth and welfare in Denmark. The Danish government wants a modern, flexible and robust daily cash benefit system based on a large number of insured persons. At the same time the unemployment insurance benefit system must in future provide financial security for the members who are involuntarily unemployed and ensure that the unemployed are available to the labour market. The unemployment insurance benefit system must in future be adjusted in order to better suit the present labour marked with its working, employment and payment conditions. The unemployment benefit system must moreover adaptable to a more international labour market. Moreover the Danish government wishes to promote a more simple benefit system, which is easier to administer and which makes it clear to the members which rules, rights and duties apply. And finally the Government wishes to further a robust and sustainable unemployment insurance benefit system. The commission is to discuss and analyze all elements of the present scheme with a view to putting forward concrete models for a modernization of the unemployment insurance benefit system and highlight the significance of any recommendation as regards unemployment, employment and public finances. The commission will conclude its work in the second half of The 2016 report on Denmark s compliance with the European Code will contain mention of the results of the commission s work.
3 II Medical Care Act of 27/12/2014 As from 1 January 2015, persons who apply for medical and/or social drug abuse treatment at the municipality have a right to a medical examination prior to the commencement of the treatment and persons who apply for medical drug abuse treatment have a right to treatment within 14 days after
4 application. In addition, persons who are referred to medical drug abuse treatment have a right to choose another treatment center than the one that the municipality has referred them to. Act 579 of 04/05/2015 In spring 2015 the Danish Parliament passed an amending act to the Psychiatric Care Act, with the purpose to ensure better rights for psychiatric patients, who are subject to detention or coercion. The act includes measures with the aim to clarify the legal status of minors in psychiatric care, and ensure a stronger emphasis on the need to seek advance indications from the patient regarding treatment during the admission interview. Agreement on the organization of the future supervisory activities of the Danish Health and Medicines Authority The 7 th of May 2015 a political agreement on the organization of the future supervisory activities of the Danish Health and Medicines Authority as regard of supervision of the health sector and authorized health personnel was signed. The agreement includes a number of elements which will support the future supervisory activities. Greater transparency on the supervisory work of the Danish Health and Medicines Authority, allocation of additional resources, an end to the use of voluntary agreements tightening of the use of specialist statements, better filing (journalisation) practice, and reorganization towards a risk-based supervision are among some of the elements from the agreement. Reimbursement of medicines for the chronically ill In Denmark reimbursement of medicines is divided into two groups -reimbursement provided automatically and reimbursement provided after individual application by a doctor. Reimbursement provided after individual application by a doctor includes reimbursement for the chronically ill. By 1 st January 2016 reimbursement in respect of the chronically ill shifts from reimbursement subject to individual application to reimbursement provided automatically. Hereafter the reimbursement scheme looks as follows: Reimbursement SCHEME 2016* Annual personal expenditure on reimbursable medicine before deduction of reimbursement Reimbursement for persons over the age of 18 Reimbursement for persons under the age of 18 DKK % 60%
5 DKK 925-1,515 50% 60% DKK 1,515-3,280 75% 75% DKK 3,280-17,738 85% 85% Adults: In excess of DKK 17,738 (patient's co-payment= DKK 3,830) 100% Persons under the age of 18: In excess of DKK 21,831 (patient's co-payment= DKK 3,830) 100% *The threshold of the reimbursement scheme are every year adjusted to the rate of inflation. From 2016 the chronically ill will not have a co-payment that exceeds DKK 3,830, though the threshold is adjusted to the rate of inflation.
6 III Sickness Benefit The Sickness Benefits Act cf. Consolidation Act No. 43 of January The maximum weekly amount of sickness benefits is DKK 4,135 in Act, No. 720 of 25 June 2014 to amend The Sickness Benefits act, the Act on Active Employment Act, the responsibility and control of the Active Employment Act, the Unemployment Insurance Act and various other Acts (New sickness-benefits model with early follow-up and action, Job assessment process with benefits payable during a process focusing on resources, unemployment benefits during illness, etc.) The Law implements the settlement, regarding a reform of the daily cash benefits. The law contains the following main points: a) Changes made during the reference period A recipient of sickness benefits must have economic safety, during a period of sickness. The initiative and follow-up must take place early in the course of the disease. The relevant initiative, to help the sick person back to the employment market, must happen as soon as possible. It is therefore important that the local authority gets the relevant information as soon as possible. The local authority must categorize the sick into one of three categories in order to focus and put efforts on those who are unlikely to resume work within 8 weeks after the first day of sickness absence. The measure must reflect the actual needs of the sick person in order to return to the employment market. The measures will therefore mostly be focused on the sick person, who risks being long-term sick (more than 8 weeks after the first day of sickness absence). The workplace must, according to own wish, be involved as much as possible, including in the question of the sick person returning to the workplace gradually. The sick person must have the possibility to reject a treatment, which the person concerned does not accept, without losing the right to sickness benefits. The diseased must contribute to own recovery, so that the diseased can resume work as soon as possible. The administrative procedures in cases of sickness benefits must be as simple as possible with as little administrative burden as possible, for the sick person, the employer and the municipal authorities. The possibilities of digitalization must be utilized, in order to make the administration of the sickness benefit system more efficient.
7 Sickness benefits and benefits payable during a process focusing on resources are both temporary benefits. The aim is to make the sick person return to the labour market. Act, No of 23 December 2014 to amend Law on Active Employment Act, the Unemployment Insurance Act and various other Acts (Reform of active employment measures, joint and intensified contacts, training, upgrading, reinforced availability and targeting of business-oriented services, etc.) The act introduces a legal basis, which ensures that a sick person, who meet the employment requirements, but has passed the time restrictions in the law of sickness benefits, may be subject to a job assessment process with benefits payable during a process focusing on resources. They are thereby ensured an initiative and benefits payable during a process focusing on resources, during a sickness period. Act, No. 742 of 1 June 2015, to amend the Act on various legislative provisions concerning applications, requests, notifications and complaints to public authorities (Transition to mandatory digital self-service, regarding the request for sickness benefits, giving consent to the issue of child certificate and criminal record for public use, application and communications, etc. for a personal allowance and health allowance, submission of complaints to the Patient, Health Service Disciplinary Board and Board of Patient Compensation, for the issuance of personal certificates in aviation request for handling complaints from passengers, applying for driver training certificates, etc.) The act regulates the digitalization of the follow-up initiative and the application of sickness benefits. The purpose of the act is to enforce a legal basis for requiring that, by the end of 2015, citizens must use digitalized self-service solutions in selected areas, when contacting the public administration. The selected areas are under the legislative sphere of The Ministry of Employment, Ministry of Justice, Ministry of Culture, Ministry of Children, Equality, Integration and Social Affairs, Ministry of Health, Ministry of Transport and the Ministry of Economy and Interior affairs. The act is a part of the implementation of the Government's aim that all communication between citizens, businesses and the local authorities must be digitalized by the end of 2015, as appeared from the government foundation "A Denmark that stands together ' (October 2011). This means that forms and letters are phased out by the end of 2015.
8 IV UNEMPLOYMENT BENEFIT The Unemployment Insurance Act cf. Consolidation Act No. 348 of 8 April Weekly maximum amount of unemployment benefits is DKK in a) Changes made during the reference period Act No. 174 of 24 February 2015 on temporary labour market cash benefit A new type of benefit has been introduced temporary labour market cash benefits payable in respect of persons who from 2015 will exhaust their right to unemployment benefits, and the temporary labour market benefits and who are denied full cash benefits. The total period of unemployment benefits, temporary labour market benefits and temporary labour market cash benefits may not exceed 3 years (in 2013). Thus, temporary labour market cash benefits may be paid in a period between ¼ to ½ years, depending on the time, the end of the 2-year period of unemployment benefits. Temporary labour market cash benefits amounts to a monthly sum of DKK for persons over 30 years of age without children (2015) and DKK for parents over 30 years of age (2015). The monthly amount for persons under 30 years of age is calculated according to the principles for calculation of cash benefits. Temporary labour market cash benefits are independent of spouse's income and total family wealth. V Old Age Benefit
9 Rates of old age pension Old-Age Pensions per month (DKK) Non-single persons: January 2014 January 2015 Basic amount 5,908 5,997 Pension supplement 2,966 3,043 Total 8,874 9,040 Single persons: Basic amount 5,908 5,997 Pension supplement 6,137 6,261 Total 12,045 12,258 Supplementary pension allowance ( ældre-check ) was DKK in 2014 and is DKK in 2015 (per year). a) Changes made during the reference period ACT NO 1527 of 27 December 2014 The Act stipulates that refugees who have been granted residence permit in Denmark in accordance with sections 7 or 8 of the Aliens Act, shall be subject to more favorable rules for calculating old age pension. The Act equates the period of residence in the country of origin with residence in Denmark when calculating the accrued residence period used for calculating old age pension for persons who have been granted residence permit in accordance with sections 7 or 8 of the Aliens Act. The same applies to other countries in which the person has been resident on a basis similar to that mentioned in section 7 of the Aliens Act. a) Changes made during the reference period
10 VI Work accidents and occupational disease benefit No changes have been made in the reference period. b) Changes decided, planned or proposed the following year A reform of the workers compensation system has been initiated and is expected to be negotiated in the Danish Parliament in c) Research (including evaluation), completed or initiated Initiated 1) Experiment of clarifying interviews with the occupational health clinics. The theory is that the interview gives the injured person a competent clarification of his or her future work opportunities as soon as possible after the injury and thereby helps the injured person become part of the labour market again. 2) Experiment with emergency units notifying the National Board of Industrial Injuries in Denmark and the Danish Working Environment Authority if a person sees the emergency unit after an industrial injury. The purpose is to ensure that all industrial injuries are reported even in cases where an employer fails to fulfil his or her duty to report an industrial injury. d) Rates of payment during the reference period Amounts in 2014: Loss of earning capacity: Compensation for loss of earning capacity is granted if there is a permanent loss of earning capacity of between 15 and 100 per cent as a consequence of the industrial injury. The compensation is calculated on the basis of the earned income in the 12 months preceding the injury. The maximum annual earned income is adjusted on an annual basis in step with the general development in wages. With effect as of 1 January 2011 compensation for loss of earning capacity is calculated subject to a deduction of the labour market contribution (8% of the earned income). At the same time the compensation has been increased from 80% to 83%, meaning that the compensation is now limited to 83% of the actual loss of earning capacity. Maximum annual earned income:
11 DKK 491,000 Compensation for permanent injury rated at a permanent injury rating of 100 per cent (lump sum): DKK 817,500 Carry-over in case of death: DKK 154,000 Compensation for loss of family provider: - Surviving spouse (maximum 30 per cent of the annual earned income of the deceased. Maximum annual earned income DKK 491,000 8% x 30%): Max. DKK 135,516 - Children (10 per cent of the annual earned income of the deceased. Maximum annual earned income DKK 491,000): Max. DKK 45,172 - Orphans (20 per cent of the annual earned income of the deceased. Maximum annual earned income DKK 491,000): Max. DKK 90,344 Where the death was caused wilfully or through gross negligence, special compensation may be granted to such surviving dependents as were particularly close to the deceased. Compensation for surviving dependants (maximum): DKK 100,000 Amounts in 2015: Maximum annual earned income: DKK 498,000 Compensation for permanent injury rated at a permanent injury rating of 100 per cent (lump sum): DKK 830,000 Carry-over in case of death: DKK 156,500 Compensation for loss of family provider: - Surviving spouse (maximum 30 per cent of the annual earned income of the deceased. Maximum annual earned income: DKK 498,000 8% x 30%): Max. DKK 137,448 - Children (10 per cent of the annual earned income of the deceased. Maximum annual earned income DKK 498,000): Max. DKK 45,816 - Orphans (20 per cent of the annual earned income of the deceased. Maximum annual earned income DKK ): Max. DKK 91,632
12 Where the death was caused wilfully or through gross negligence, special compensation may be granted to such surviving dependents as were particularly close to the deceased. Compensation for surviving dependants (maximum): DKK 100,000 VII Family Benefits Rates of benefits (2015): The general family allowance payable under the rules of the Ministry of Taxation amounts to: 0 2 year-olds: DKK 17,772per year 3 6 year-olds: DKK 14,076per year 7 17 year-olds: DKK 11,076per year Child benefits comprises the following allowances and benefits: Ordinary child benefit is DKK 5,356 annually per child and is payable to single parents and to parents who both receive social pension. Extra child benefit is DKK 5,460 annually and is payable as a supplement to the ordinary child benefit to the single parent who has the child living with him/her. Only one extra child benefit is payable irrespective of the number of children. Special child benefit is DKK 15,468 annually per child and is payable to children who have lost one or both parents, when paternity cannot be determined, who are born by single women following artificial insemination, who have been adopted by a single person and where one or both parents receive social pension and under certain other special conditions. Multiple birth allowance is DKK 8,832 annually for each child, except the first, and is granted in the event of multiple births and until the children reach the age of 7. Adoption allowance is DKK 50,871 as a lump sum and is granted to cover some of the expenses incurred in connection with the adoption of a foreign child through one of the recognised adoption organisations. Students child allowance is DKK 7,032 annually and is payable to parents who pursue education under certain conditions. A parent can only receive one such allowance and only one allowance per child is payable. Students child allowance is income tested. Supplementary child allowance to breadwinners undergoing training or education is payable to family breadwinners in certain periods of training or education. The allowance will lift their total income to a level equivalent to the comparable state education grant with a breadwinner allowance.
13 VIII Maternity Benefit Act No. 566 of 9 June 2006 on Entitlement to Leave and Benefits in the Event of Childbirth cf. Consolidation Act No. 571 of 29 April 2015 The maximum weekly amount of maternity benefits is DKK 4,135 in IX Invalidity benefit Rates of anticipatory pension (2015) Anticipatory Pension per month (DKK) Old scheme Non-Single persons: January 2014 January 2015 Ordinary 11,747 11,923
14 Increased ordinary 11,747 11,923 Intermediate 11,747 11,923 Highest 15,712 15,947 Single persons: Ordinary 14,918 15,142 Increased ordinary 14,918 15,142 Intermediate 14,918 15,142 Highest 18,883 19,166 Anticipatory Pension per month (DKK) New scheme January 2014 January 2015 Non-single persons 15,011 15,236 Single persons 17,660 17,925 a) Changes made during the reference period None.
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