Denmark to end general coronavirus compensation for businesses
Compensation packages available to all businesses impacted by coronavirus restrictions are to end on July 1st and be replaced by a model focusing on specified sectors.
A total of 1.65 billion kroner is to be spent on what has been termed a “summer and business package” aimed to help sectors including tourism and culture to get back on their feet following the coronavirus crisis.
A broad parliamentary majority approved the stimulus package following negotiations last night, with the Ministry of Finance subsequently confirming the deal.
General coronavirus compensation for businesses, which has been offered in some form throughout most of the pandemic, expires on July 1st and will be replaced by the new scheme aimed at particularly-affected businesses, the new agreement states.
The government’s expert economic group recommended that the general compensation system be allowed to expire given that many restrictions have now been lifted and much of society reopened, giving a gradual normalisation of economic activity, the ministry said.
READ ALSO: Denmark’s new reopening plan: Here’s what changes on May 21st
“The government and agreement parties have agreed to follow the expert group’s recommendations to replace the general compensation schemes with new customised versions which are specifically focused on at-risk businesses,” the ministry wrote.
The new system, which takes effect on July 1st remains in place for three months, allows businesses which have a turnover 45 percent or more under normal levels to apply for help to cover the cost of overheads.
“This scheme will be based on the existing graduated model beginning with a compensation rate of 55 percent at turnover loss of 45 percent,” the ministry statement reads.
Self-employed people who also lose income due to the coronavirus will also be able to apply for support under the new system.
Losses of 45 percent or more of turnover for self-employed people can be compensated by up to 90 percent until the end of September under the new agreement. Payouts are capped at 33,000 kroner per month for self-employed people who employ others and 30,000 kroner per month in general in July and August, before being reduced to 20,000 kroner in September.
Self-employed people who are still unable to reopen their businesses due to the remaining restrictions may apply for up to 100 percent of their turnover losses. The same maximum payouts apply.
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A total of 1.65 billion kroner is to be spent on what has been termed a “summer and business package” aimed to help sectors including tourism and culture to get back on their feet following the coronavirus crisis.
A broad parliamentary majority approved the stimulus package following negotiations last night, with the Ministry of Finance subsequently confirming the deal.
General coronavirus compensation for businesses, which has been offered in some form throughout most of the pandemic, expires on July 1st and will be replaced by the new scheme aimed at particularly-affected businesses, the new agreement states.
The government’s expert economic group recommended that the general compensation system be allowed to expire given that many restrictions have now been lifted and much of society reopened, giving a gradual normalisation of economic activity, the ministry said.
READ ALSO: Denmark’s new reopening plan: Here’s what changes on May 21st
“The government and agreement parties have agreed to follow the expert group’s recommendations to replace the general compensation schemes with new customised versions which are specifically focused on at-risk businesses,” the ministry wrote.
The new system, which takes effect on July 1st remains in place for three months, allows businesses which have a turnover 45 percent or more under normal levels to apply for help to cover the cost of overheads.
“This scheme will be based on the existing graduated model beginning with a compensation rate of 55 percent at turnover loss of 45 percent,” the ministry statement reads.
Self-employed people who also lose income due to the coronavirus will also be able to apply for support under the new system.
Losses of 45 percent or more of turnover for self-employed people can be compensated by up to 90 percent until the end of September under the new agreement. Payouts are capped at 33,000 kroner per month for self-employed people who employ others and 30,000 kroner per month in general in July and August, before being reduced to 20,000 kroner in September.
Self-employed people who are still unable to reopen their businesses due to the remaining restrictions may apply for up to 100 percent of their turnover losses. The same maximum payouts apply.
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