Denmark to offer further compensation for corona-hit businesses

Ritzau/The Local
Ritzau/The Local - [email protected]
Denmark to offer further compensation for corona-hit businesses

A new agreement in the Danish parliament will re-introduce a compensation scheme for businesses with significant losses caused by coronavirus restrictions.


Business will be able to apply for the cost of their overheads to be paid if turnover falls by 30 percent.

The agreement follows provisions announced earlier this week to partially cover the wages of staff at business with reduced operations due to Covid-19 restrictions. In a statement on Thursday, the Ministry of Employment has confirmed that the wage compensation package will be extended to the entire country, and not just the 69 municipalities under lockdown.

Industry interest organisations had called for overheads to also be covered at struggling businesses hit particularly hard by the current partial lockdown, including restaurants.

The government, all of its allies on the left wing, and the opposition Liberal and Conservative parties all voted the deal through parliament, giving it a broad majority.

Companies, cultural institutions and sports clubs will all be able to apply for the overheads relief.

“There’s no doubt that there’s a need for help out there,” business minister Simon Kollerup said in a statement.

Businesses throughout Denmark can apply for the relief, meaning it is not limited to municipalities under partial lockdown. 69 of Denmark’s 98 municipalities are in lockdown from Friday.


The deal also includes a provision for compensation for self-employed people if their turnover has been reduced by 30 percent.

The scheme is initially effective until January 3rd 2021 – the same date the lockdown is scheduled to expire.

The Danish Chamber of Commerce (Dansk Erhverv) voiced its backing for the deal.

“A sigh of relief is coming from a lot of businesses which have been worried over whether they will be included in the help packages, so they can survive and protect jobs. So this is a good start,” the organisation’s CEO Brian Mikkelsen said.

Mikkelsen noted that the success of the measures hinged on EU approval of the state relief package.

READ ALSO: Denmark announces support package for lockdown-hit restaurants




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