image missing
Date: 2025-06-18 Page is: DBtxt003.php txt00018484

Coronavirus Crisis
Balancing Health -v- Economy

Danish corona-hit firms get state aid to pay 75% of salaries

Burgess COMMENTARY

Peter Burgess
Danish corona-hit firms get state aid to pay 75% of salaries


Danish Prime Minister Mette Frederiksen (R) and Minister of Health Magnus Heunicke (L) hold a press briefing on the novel coronavirus Covid-19 situation, in Copenhagen, Denmark, 10 March 2020. [Liselotte Sabroe/EPA/EFE]

Denmark’s government told private companies struggling with drastic measures to curb the spread of coronavirus that it would cover 75% of employees’ salaries, if they promised not to cut staff.

Under the three-month aid period that will last until June 9, the state offers to pay 75% of employees’ salaries at a maximum of 23,000 Danish crowns ($3,418) per month, while the companies pay the remaining 25%.

“If there’s a big drop in activity, and production is halted, we understand the need to send home employees. But we ask you: Don’t fire them,” Prime Minister Mette Frederiksen said told a news conference on Sunday (15 March).

Employees will be obliged to take five days of mandatory vacation or time off from work, she added.

The offer is one of several economic aid packages by the government to help companies and employees cushion the effect of tough measures to curb the spread of coronavirus.

The measures include shutting borders, closing schools and universities, and sending home all public sector workers with non-critical jobs.

One of the wealthiest countries in the world, Denmark has sound public finances with low government debt partly as a result of a slew of economic reforms over the last two decades.
-------------------------------------------------------
EURACTIV's editorial content is independent from the views of our sponsors.

Topics coronavirus Coronavirus Denmark Economy & Jobs Health Mette Frederiksen State aid
SITE COUNT Amazing and shiny stats
Copyright © 2005-2021 Peter Burgess. All rights reserved. This material may only be used for limited low profit purposes: e.g. socio-enviro-economic performance analysis, education and training.