Safeguarding your finances

Membership of an unemployment fund is a good way of safeguarding your finances. As a self-employed business owner you can also take out a sickness benefit insurance.

If you are living in Denmark, are between 18 and 63 years of age and have your own business as your principal occupation, you can usually become a member of an unemployment fund (A-kasse). However, unemployment funds which accept self-employed business owners as members often have various admission rules.

Rules for unemployment benefits
Your business must be sold, wound up or leased for a non-terminable period of 5 years before you are entitled to unemployment benefits. Different rules apply depending entirely on your particular situation. It is also possible to take out a combination insurance policy which is based on approx. 50% paid employment and 50% self-employment.

Read more at lists all the rules governing unemployment benefits (in Danish)

Sickness benefits
As a self-employed business owner, you are entitled to sickness benefits from your local authority after you have been ill for 2 weeks. To report your sickness, it is necessary to use a special form which must be sent to the social services department in the municipality in which you are resident. It is a condition that you have been exercising a professional activity on a certain scale within the past 12 months.

Having "exercised a professional activity on a certain scale" means that you have worked for an average of 18.5 hours a week for a minimum of six months within the past 12 months. To be entitled to sickness benefit, it is also a condition that you worked at least 18.5 hours a week on average during the last month before your first day of absence.

Need help?
Contact your municipality for further information about sickness benefits.

As a business owner, benefits in the case of pregnancy and maternity/paternity leave are calculated on the basis of the profits generated by the business during the most recent financial year. Voluntary sickness benefit insurance pays out a minimum of two-thirds of the maximum sickness benefits rate irrespective of your business earnings. 

Self-employed business owners are subject to the same terms and conditions for parental leave as employees.