New Work Requirement for Cash Benefits Recipients Unveiled in Denmark

A work requirement is being introduced for all citizens in the cash benefits system who do not meet a residency requirement and an employment requirement. This applies to citizens receiving the lowest rate in the upcoming cash benefits system, and they are generally expected to contribute on a full-time basis.

Starting on January 1, 2025, the work requirement will become a part of the cash benefits system. This means that all citizens who do not meet the requirement of residing in the country for at least 9 out of the last 10 years (residency requirement) and the requirement of full-time employment for at least 2½ years out of the last 10 years (employment requirement) must participate in the work requirement to receive their full benefits.

The agreement on a work requirement has been reached by the government (Social Democrats, Venstre, and Moderates), the Danish People’s Party, and the Danish People’s Party and follows the two recently concluded agreements on the cash benefits system.

The efforts within the work requirement can consist of various employment-focused initiatives. It will primarily involve community service, but may also include internships in companies and jobs with wage subsidies. However, the municipality must always tailor the initiatives based on a specific and individual assessment of each citizen’s capabilities and health.

If a citizen has regular working hours, it will reduce the number of hours they must participate in the work requirement. Additionally, Danish language instruction, preparation time, job hunting, and transportation between activities can also reduce the number of hours a citizen must be involved in employment efforts within the work requirement.

If citizens subject to the work requirement have unexcused absences, their benefits will be reduced.

The work requirement applies to citizens who do not meet the residency and employment requirements. They will receive the new minimum rate in a future cash assistance system.

-“In Denmark, everyone who can work and support themselves should. It’s both fair and the most dignified path for individuals. This is about rights and responsibilities. Immigrants, especially women with non-Western backgrounds, should feel that they have something to contribute and are making a difference. That they have a reason to get up in the morning. We are now ensuring this with a work requirement”, says Minister of Employment Ane Halsboe-Jørgensen.