Guide
As a self-employed or private employer, you can sign up for sickness benefit insurance scheme and insure yourself financially if you or one of your employees becomes ill or injured.
There are two types of sickness benefit insurance schemes. Which one your company should choose depends on your company form.
Choose the insurance for private employers if you own a Limited Liability company (anpartsselskab or ApS in Danish).
Since you are considered an employee of your own company, the insurance will cover both you and your employees.
A spouse as an employee
The insurance also covers an employee-spouse if he or she is employed as an employee pursuant to section 25A, subsection 7 of the Withholding Tax Act.
Choose the insurance for private employers if you own a Limited Company (A/S in Danish).
Since you are considered an employee in your own company, the insurance will cover both you and your employees.
A spouse as an employee
The insurance also covers an employee-spouse if he or she is employed as an employee pursuant to section 25A, subsection 7 of the Withholding Tax Act.
Choose the insurance for private employers if you own an Entrepreneurial Limited Company (IVS).
Since you are considered an employee of your own company, the insurance will cover both you and your employees.
A spouse as an employee
The insurance also covers an employee-spouse if he or she is employed as an employee pursuant to section 25A, subsection 7 of the Withholding Tax Act.
Choose the insurance for private employers if you own a SMBA.
Since you are considered an employee of your own company, the insurance will cover both you and your employees.
A spouse as an employee
The insurance also covers an employee-spouse if he or she is employed as an employee pursuant to section 25A, subsection 7 of the Withholding Tax Act.
As the owner of a one-man proprietorship, you must choose the sickness benefit insurance scheme for the self-employed if you want to insure yourself. The insurance covers you as the owner.
A spouse as an employee
An employee-spouse can also sign up for the sickness benefit insurance scheme for the self-employed if the spouse is registered with the Danish Tax Agency as an employee-spouse and receives B-income.
If you have employees
If you have employees in your sole proprietorship and want to insure them, you must also sign up for the insurance for private employers.
As the owner of a PMV, you must choose the sickness benefit insurance scheme for the self-employed if you want to insure yourself. The insurance covers you as the owner.
A spouse as an employee
An employee-spouse can also sign up for the sickness benefit insurance scheme for the self-employed if the spouse is registered with the Danish Tax Agency as employee-spouse and receives B-income.
If you have employees
If you have employees in your PMV and want to insure them, you must also sign up for the insurance for private employers.
As the owner of a P/S, you must choose the sickness benefit insurance scheme for the self-employed if you want to insure yourself. The insurance covers you as the owner.
A spouse as an employee
An employee-spouse can also sign up for the sickness benefit insurance scheme for the self-employed if the spouse is registered with the Danish Tax Agency as employee-spouse and receives B-income.
If you have employees
If you have employees in your P/S and want to insure them, you must also sign up for the insurance for private employers.
If you want to insure yourself, you must sign up for the sickness benefit insurance for the self-employed, as a stakeholder is considered self-employed.
The insurance only covers yourself. The other holders in the partnership can also each sign up for the insurance for self-employed.
A spouse as an employee
An employee-spouse can also sign up for the sickness benefit insurance for the self-employed if the spouse is registered with the Danish Tax Agency as employee-spouse and receives B-income.
If you have employees
If you have employees and want to insure them, the company must also sign up for the insurance for private employers.
As a private employer, you can be covered by the sickness benefit insurance if:
your company has an active CVR / SE number in Denmark
your company's total wage bill in the previous calendar year does not exceed DKK 1,750 x the maximum sickness benefit amount per week. In 2019, it is DKK 7,708,750.
you as an employer do not receive public funds corresponding to at least 50% of the operating expenses.
What does the sickness benefit insurance cover for employers?
Sickness benefit insurance covers your employees' illness starting the second day of absence. Without insurance, you can only receive reimbursement of sickness benefits from the municipality after 30 calendar days.
The sickness benefit insurance also covers your own illness if you own an ApS, A/S, IVS or SMBA. However, it is a prerequisite that you pay salaries from the company to yourself every month.
A spouse as an employee
The insurance for private employers also covers an employee-spouse if he or she is employed as an employee pursuant to section 25A, subsection 7 of the Withholding Tax Act.
If he or she is registered with the Danish Tax Agency as employee-spouse and receives B-income, he or she will not be covered, but can sign up for the sickness benefit insurance scheme for the self-employed.
Maternity and child's first day of illness
The insurance does not cover the child's first day of illness or maternity leave.
As a self-employed person, you can be covered by the sickness benefit insurance scheme if you
meet the employment requirement by at least 18½ hours per. week
have income in your business.
What does the sickness benefit insurance scheme cover for the self-employed?
You can choose between receiving sickness benefits from the 1st or 3rd day of absence, and whether you want to be covered at the minimum rate or the maximum rate.
Minimum rate: You get paid 2/3 of the highest sickness benefit rate, regardless of the size of your income.
Maximum rate: The sickness benefit is calculated based on your profit in the company. If the profit in your company the year before was at least DKK 152,000, you can get more than the minimum rate, however max. highest sickness benefit rate. However, you are always guaranteed the minimum rate.
The price of the insurance depends on which cover you choose.
The insurance usually covers after 6 months
You are usually covered by the insurance from 6 months after registration.
In some cases, you may be covered by the insurance earlier. This applies:
if you have stopped working as an employee within the last 3 months or shortly after enrolling and if you meet the conditions for entitlement to unemployment benefits as an employee.
if you have been in an accident in the period from when you signed up for the insurance until the 6 months have passed. You must apply for a dispensation from your municipality of residence, the department for sickness benefits.
Coverage in different situations
| Situation | Coverage |
|---|---|
| Children's first day of illness | The insurance does not cover the child's first day of illness. |
| If you are going on maternity / paternity leave | If you as a self-employed person go on maternity/paternity leave and have a deficit in your company, you cannot receive maternity/paternity benefits as a self-employed without having the sickness health insurance, as maternity/paternity benefits are calculated based on your company's profits. Please contact Udbetaling Danmark, Sygedagpengeforsikring for more information about your specific situation. |
| Employee-spouse | A spouse to an employee can also sign up for the sickness benefit insurance scheme for the self-employed, if the spouse is registered with the Danish Tax Agency as an employee-spouse and receives B-income. |
| If you have employees | If you have employees in your company and want to insure them, you must also sign up for the insurance for private employers. |
| If you run your business in both Denmark and abroad | If you run your business in both Denmark and abroad, you must mark that you run a business in other countries when you sign up for the sickness benefit insurance. You will then receive a letter from Udbetaling Danmark, which will ask you to fill in some additional information. If you only start working in several countries later, you must notify Udbetaling Danmark of the change. Please contact Udbetaling Danmark, Sygedagpengeforsikring, for more information. |
| If you are retired or have a ‘fleks job’ in your own company | Please contact Udbetaling Danmark, Sygedagpengeforsikring, for more information. |
The price of a sickness benefit insurance for private employers is a certain percentage of the company's total wage cost (‘lønsum’ in Danish). In 2020, it is 0.79% of the company’s total wage cost.
The insurance price is calculated based on salary expenses in the previous calendar year. It means that:
In 2020, the amount will be calculated based on the company's salary expenses in 2019
In 2021, the actual wage costs for 2020 will be settled and the price of the insurance in 2020 will be adjusted. The difference between the paid and the actual price is regulated by the second half of the collection in 2021.
Remember to report changes in the total wage cost (‘lønsum’).
For the price to be as correct as possible in the first instance, you must remember to regularly notify changes in the company's payroll to Udbetaling Danmark, Sygedagpengeforsikring.
Send Digital Post to Udbetaling Danmark, Sygedagpengeforsikring
The insurance price can be reduced
If you have employees in flex jobs, job training, etc., you can have the wage costs deducted in the calculation of the company's total wage cost. It is called wage cost deduction (‘lønsumsudeholdelse’ in Danish) and means that the insurance becomes cheaper.
The price of the sickness benefit insurance scheme for the self-employed depends on whether you want to be insured with minimum or maximum coverage from the 1st or from the 3rd day of sickness absence.
| Sickness benefit insurance for the self-employed (2020) | Price for minimum coverage | Price for maximum Coverage |
|---|---|---|
| Sickness benefits from the 3rd day of absence | DKK 2,208 per year | DKK 3,312 per year |
| Sickness benefits from the first day of absence | DKK 3,408 per year | DKK 5,112 per year |
If you are long-term or chronically ill, you can be included in the sickness benefit insurance against an increase in the price of 25%.
Here you can sign up for the sickness benefit insurance for private employers. You pay for the insurance semi-annually.
When does the insurance take effect?
The sickness benefit insurance for employers takes effect 7 days after registration. This also applies even if Udbetaling Danmark has not completed your case.
Report illness immediately
As a private employer, you must report sick leave to the municipality, even if you have not yet received a charge and confirmation that you are included in the sickness benefit insurance.
However, the municipality can only see that you are covered by the insurance when your registration has been processed in Udbetaling Danmark. You will then be paid sickness benefits retroactively.
Sign up for sickness benefit insurance scheme for private employers
Automatic cancellation in case of non-payment
If you do not pay the insurance and possibly reminder fee on time, the sickness benefit insurance scheme will be automatically cancelled
at the end of February if the December charge is not paid
at the end of August if the June charge is not paid.
Udbetaling Danmark subsequently sends a collection that covers the period during which you have been insured without payment.
Here you can sign up for the sickness benefit insurance scheme for the self-employed. Once you have signed up, you will receive a letter of admission and then a charge in your private Digital Post (not the company's).
Udbetaling Danmark recommends that you register the payment with BetalingsService through your bank.
When do I have to pay from?
You pay for the insurance from the date you sign up, including the 6 months before you are covered by the insurance and can receive sickness benefits.
Annual payment
Every year in March you get a charge for next year's insurance. The insurance covers one year at a time from 1 April to 31 March of the following year.
Sign up for sickness benefit insurance scheme for self-employed
Automatic cancellation in case of non-payment
If you do not pay the first charge on time, you will be automatically unsubscribed from the scheme. You will not receive a reminder for the first payment.
If you no longer wish to be registered with the sickness benefit insurances scheme for private employers, you can cancel the insurance.
Pay attention to which insurance you are signed up for, so you cancel the right one. In some cases, you may be signed up for both insurances.
ApS, A/S, SMBA and IVS
If you own an ApS, A/S, SMBA or IVS and unsubscribe from insurance for private employers, neither you nor your employees will be covered anymore.
Other company forms
Remember that if you have insurance for both employees (the insurance for private employers) and yourself as a self-employed person (the insurance for the self-employed), you must send a cancellation for each of the insurances.
If you no longer wish to be registered with the sickness benefit insurances scheme for self-employed, you can cancel the insurance.
Pay attention to which insurance you are signed up for, so you cancel the right one. In some cases, you may be signed up for both insurances.
Employee spouse
If an employee spouse is also registered with the sickness benefit insurance for the self-employed, this person must cancel the insurance himself / herself.
Terminate the sickness benefit insurance
Change in company form
If your company changes company form to ApS, A/S, IVS or SMBA, you will receive a new CVR number.
To ensure that you continue to have the right sickness benefit insurance, you must:
unsubscribe from the sickness benefit insurance you have on the previous CVR no.
re-register the insurance with the new CVR number.
Please contact Udbetaling Danmark, Sygedagpengeforsikring, for further information.
You must report sickness absence digitally for yourself and your employees.
Notification deadlines for private employers
You must report your own or your employees' sickness absence within these deadlines:
| Sick leave | Notification deadline |
|---|---|
| Sickness absence for less than 30 days | Report sickness absence no later than 3 months after the first day of absence |
| Sick leave over 30 days | Report sickness absence no later than 5 weeks after the first day of absence |
When you meet the notification deadlines, the company receives a refund of sickness benefits from the 2nd day of sickness absence. If the absence is reported too late, reimbursement will only be paid from the time you reported the absence.
Report sickness absence in NemRefusion
It is the municipality of residence for the person who is ill that administers and pays the sickness benefits. This means that your municipality of residence pays sickness benefits in the event of your own illness, and the employee's municipality of residence pays sickness benefits if the employee is ill.
You must always report sickness absence in NemRefusion.
Questions about the sickness benefits
If you have questions about the reimbursement of sickness benefits, you must contact your municipality. In the case of an employee, you must contact the municipality where the employee lives.
It can, for example, be a question
if reimbursement of sickness benefits can be paid
about calculation of sickness benefits or the amount
about the payment of sickness benefits.
You must report sickness absence digitally.
Notification deadlines for self-employed
You must report your absence due to sickness within these deadlines:
| Sickness benefit insurance cover | Notification deadline |
|---|---|
| If you are covered from the 1st day of absence | Report sickness absence no later than 1 week after the 1st day of absence |
| If you are covered from the 3rd day of absence | Report sick leave no later than 1 week after the 3rd day of absence |
When you meet the notification deadlines, the company receives a refund of sickness benefits from the 1st or 3rd day of sick leave, depending on which cover you have chosen.
If the absence is reported too late, reimbursement will only be paid from the time you reported the absence.
Report sickness absence in NemRefusion
It is your municipality of residence that administers and pays the sickness benefits.
You must always report sickness absence in NemRefusion.
Questions about the sickness benefits
If you have questions about the reimbursement of sickness benefits, you must contact your municipality.
It can, for example, be a question
if reimbursement of sickness benefits can be paid
about calculation of sickness benefits or the amount
about the payment of sickness benefits.
If you are not satisfied with how Udbetaling Danmark has dealt with your case, you are welcome to contact Udbetaling Danmark, Sygedagpengeforsikring. Sometimes misunderstandings can occur and can easily be resolved with a verbal explanation.
If you disagree with a decision
You may file a complaint to Udbetaling Danmark if you disagree with af decision about
whether you have income from self-employment or
whether you are considered a private employer
There is no deadline for filing af complaint, but Udbetaling Danmark must receive your complaint within a reasonable time after you have received the decision. If Udbetaling Danmark does not agree with your complaint, they will forward it to the National Board of Appeal's Employment Committee, which will then make the final decision.
You cannot appeal the decision
cancellation date
the price of the insurance
refusal of wage cost deduction.
You can read more in
Lov nr. 212 af 17.03.2020 om ændring af lov om sygedagpenge (in Danish)
When you contact Udbetaling Danmark, the administration is obliged as a public authority to register and save your personal data.
This Policy for protection of personal data provides information on how Udbetaling Danmark handles your personal data and your rights in relation to the same.
