sickness benefit for the self-employed
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By 8.5 min readLast Updated: 12. December 2023

Can you get sickness allowance as a self-employed person?

Did you know that one who self employed business owner may be entitled to sick pay under certain conditions?

We delve into the terms and conditions to ensure you are up to date and informed.

Read more about how your sickness benefit is calculated while you run your own business, and get a comprehensive understanding of the process below.

What is sick pay?

Sickness allowance is a benefit that you can receive if you have an accident or become ill (fully or partially) and are therefore unable to work.

It is a temporary financial support that is given to replace the salary you lose during the period you are on sick leave.

Sickness allowance for the self-employed: Requirements and conditions

A prerequisite for receiving sickness benefits as a self-employed person or working spouse is, among other things, that you must have permanent residence in Denmark and pay tax on your income at home.

In addition, it is a requirement that you are unable to work due to illness or injury.

Who administers sick pay?

Sickness benefits are administered by your municipality and are paid when you meet certain conditions. The conditions for the payment are assessed based on the illness and how much influence it has on your ability to work.

It is important to note that sickness benefit is usually only paid for a limited period.

After a certain period, the doctor makes a new assessment to determine whether you are still entitled to the benefit.

If it is assessed that you are well enough to work again, the payment of sickness benefit will stop.

The self-employed can also voluntarily take out insurance against accidents or occupational diseases through AES (Arbejdsmarkedets Erhvervssikring).

For further information and the application procedure, you can visit the website aes.dk.

This is how you get sickness benefit as a self-employed person

It is the municipality that assesses whether you are entitled to sickness allowance.

To be entitled to sickness allowance from the municipality, you must be able to document that you have worked to the necessary extent. In addition, you must meet the employment requirement.

What is the employment requirement?

The employment requirement refers to the requirements and conditions that self-employed persons must meet in order to be entitled to sickness benefit.

To fulfill the employment requirement as a self-employed person, you must:

  • Be the owner of a business
  • Have conducted business on a significant scale for a period within the past 12 months
  • Have run your business no later than one month before the sick leave
  • Have exercised business activity for at least half of an average weekly working time

Carrying out business to a significant extent is defined as a weekly work effort of at least 18.5 hours.

If you have had your business for less than six months, any previous employment as an employee will be included in the assessment of whether you meet the employment requirement.

If you have had your business for less than six months, you can possibly include previous employment as an employee.

In other words, they will assess whether you meet the employment requirement during periods of previous employment as an employee.

Example of non-fulfillment of the employment requirement:

Imagine that you have a registered CVR number, but do not actively participate in its operation.

In this case, you will not be entitled to sickness allowance, since you do not work for the company.

Example of fulfillment of the employment requirement:

You have left your salaried position and have now had your own business for 2 months.

You are injured in an accident and are assessed as unfit for work. Since you have not worked to a significant extent within the past 12 months, you can also include your work activity as wage earner.

Calculation of sickness benefit for the self-employed: How it works

The calculation of sickness benefit for the self-employed varies depending on the individual situation. When you have to calculate sickness benefit for the self-employed, it really depends on your individual situation.

Firstly, the calculation depends on whether you are fully or partially incapacitated.

In the event of partial incapacity for work, you can receive reduced sickness allowance. This requires a medical assessment, where the doctor assesses that you are either only able to work partially or need outpatient treatment.

Sickness allowance is calculated on the basis of your income base as a self-employed person.

This can be your most recent annual income as a trader or an average over a certain period.

In addition, it is also important to be aware that there is a ceiling on how much you can receive in sickness benefit.

This ceiling is based on a maximum unemployment benefit rate.

You have the right to choose to go on sick leave at any time during a period of sickness benefit and start working on reduced hours.

Reduced sickness allowance can be paid if the municipality assesses that you are able to carry out no more than a quarter or half of your normal workload.

Rates for sickness benefit for the self-employed

Sickness benefits rates vary depending on your company's profits. The main rule, however, is that you can receive a maximum of DKK 4,550 per week (2023 rate). The sickness benefit amount is paid in arrears each month.

If you have taken out voluntary insurance, however, the amount will be at least 2/3 of the maximum rate.

Example:

Morten is a business owner and falls ill for a period of 4 weeks.

Morten meets the conditions and requirements for the payment of sickness allowance, and based on his income he can receive the maximum rate for sickness allowance of DKK 4,550 per day. week.

During the period of illness, Morten will receive: DKK 4,550 x 4 weeks = DKK 18,200.

Understand your right to sickness allowance as a self-employed person

As a self-employed person, it is crucial to know your rights in the event of illness and the financial support measures available.

Here is a checklist for the most important points to ensure that you are informed about your options and rights in case of illness:

  • Fulfillment of the employment requirement
  • Documentation and application procedure
  • Sickness allowance calculation
  • Duration of sick pay
  • Voluntary insurance

You can review these points carefully to be prepared to handle your situation with knowledge of your rights and options.

How do I apply for sickness benefit?

You can apply for sickness allowance yourself by reporting sickness absence via EasyRefund on Virk.dk.

It is worth noting that the deadline for applying for sickness allowance from the municipality is no later than three weeks after the first day of absence.

If you have taken out insurance, however, the absence must be reported no later than one week after the entitlement to sickness allowance begins.

This takes place no later than one week after the first or third day of absence, depending on the insurance.

You must remember the following when applying:

  • Documentation: When reporting sick, you must be able to document that you meet the employment requirement. This usually means that you have run a self-employed business for at least six months within the last 12 months. Of this, the last month before the absence, and that you have worked in the company for at least half of the normal weekly working hours.
  • Insurance information: If you have taken out sickness benefit insurance, you must provide information such as sums insured, type of insurance and possibly which cover you have chosen. Eg. whether you want sickness benefit from the 1st or 3rd day of absence.
  • Documentation for income: You may also be asked to provide documentation for your income in the company.

How long can I receive sick pay?

You can receive sickness benefit for a maximum of 22 weeks within a period of nine months. Your case will then be reassessed, and a decision will be made as to whether there is a basis for extending your period of sickness benefit.

Of course, you can also choose to report sick in whole or in part, so that you resume your work activity full or reduced time.

FAQ – Most frequently asked questions about sickness allowance as a self-employed person

If you have not taken out voluntary insurance, as a self-employed person you can receive a maximum of DKK 4,550 per week in sick pay.

A company is entitled to sick pay when you, as a self-employed person or an employee's spouse, are unable to work due to illness or injury. The earliest you can apply for sickness allowance from the municipality is when you have been ill for two weeks. It requires permanent residence in Denmark, tax payment in the country and that you meet the employment requirement.

If you have taken out voluntary insurance, however, you may be entitled to sickness allowance as early as the 1st or 3rd day of absence.

In 2023, the maximum amount of sickness allowance for self-employed persons in Denmark is DKK 4,550 per week. It is important to note that this amount is the upper limit and the actual payout depends on your financial situation and other relevant factors.

Sickness allowance for the self-employed is normally calculated on the basis of the company's profit. If you have taken out voluntary insurance, the daily allowance will amount to at least 2/3 of the maximum rate. It is worth mentioning that it is the municipality that assesses whether you meet the employment requirement and thus have the right to sickness allowance as a self-employed person.

The price of sickness benefit insurance for the self-employed varies depending on several factors, including insurance coverage, the selected rate (minimum or maximum), business type and the insurance company's premium rates. It is important to mention that premium rates can change, so it is a good idea to contact the insurance company directly for the most accurate and up-to-date information.

When you consider taking out sickness benefit insurance as a self-employed person, you can usually choose between the minimum and maximum rate. The minimum rate pays out 2/3 of the highest sickness benefit rate, regardless of the amount of your income. The maximum rate is calculated based on the profit in your company, and if the profit was at least a certain amount the previous year, you could get more than the minimum rate. However, it is always guaranteed that you will get at least the minimum rate.

To get precise information about premium rates and costs, it would be best to contact the insurance company you are considering taking out the policy with. Insurance companies can provide customized quotes based on the specifics of your business and the choices you make regarding insurance coverage and rate.

In addition, it may be a good idea to compare offers from several insurance companies to find the most cost-effective solution that suits your needs as a self-employed person.

sickness benefit for the self-employed
By 8.5 min readLast Updated: 12. December 2023

Can you get sickness allowance as a self-employed person?

Did you know that one who self employed business owner may be entitled to sick pay under certain conditions?

We delve into the terms and conditions to ensure you are up to date and informed.

Read more about how your sickness benefit is calculated while you run your own business, and get a comprehensive understanding of the process below.

What is sick pay?

Sickness allowance is a benefit that you can receive if you have an accident or become ill (fully or partially) and are therefore unable to work.

It is a temporary financial support that is given to replace the salary you lose during the period you are on sick leave.

Sickness allowance for the self-employed: Requirements and conditions

A prerequisite for receiving sickness benefits as a self-employed person or working spouse is, among other things, that you must have permanent residence in Denmark and pay tax on your income at home.

In addition, it is a requirement that you are unable to work due to illness or injury.

Who administers sick pay?

Sickness benefits are administered by your municipality and are paid when you meet certain conditions. The conditions for the payment are assessed based on the illness and how much influence it has on your ability to work.

It is important to note that sickness benefit is usually only paid for a limited period.

After a certain period, the doctor makes a new assessment to determine whether you are still entitled to the benefit.

If it is assessed that you are well enough to work again, the payment of sickness benefit will stop.

The self-employed can also voluntarily take out insurance against accidents or occupational diseases through AES (Arbejdsmarkedets Erhvervssikring).

For further information and the application procedure, you can visit the website aes.dk.

This is how you get sickness benefit as a self-employed person

It is the municipality that assesses whether you are entitled to sickness allowance.

To be entitled to sickness allowance from the municipality, you must be able to document that you have worked to the necessary extent. In addition, you must meet the employment requirement.

What is the employment requirement?

The employment requirement refers to the requirements and conditions that self-employed persons must meet in order to be entitled to sickness benefit.

To fulfill the employment requirement as a self-employed person, you must:

  • Be the owner of a business
  • Have conducted business on a significant scale for a period within the past 12 months
  • Have run your business no later than one month before the sick leave
  • Have exercised business activity for at least half of an average weekly working time

Carrying out business to a significant extent is defined as a weekly work effort of at least 18.5 hours.

If you have had your business for less than six months, any previous employment as an employee will be included in the assessment of whether you meet the employment requirement.

If you have had your business for less than six months, you can possibly include previous employment as an employee.

In other words, they will assess whether you meet the employment requirement during periods of previous employment as an employee.

Example of non-fulfillment of the employment requirement:

Imagine that you have a registered CVR number, but do not actively participate in its operation.

In this case, you will not be entitled to sickness allowance, since you do not work for the company.

Example of fulfillment of the employment requirement:

You have left your salaried position and have now had your own business for 2 months.

You are injured in an accident and are assessed as unfit for work. Since you have not worked to a significant extent within the past 12 months, you can also include your work activity as wage earner.

Calculation of sickness benefit for the self-employed: How it works

The calculation of sickness benefit for the self-employed varies depending on the individual situation. When you have to calculate sickness benefit for the self-employed, it really depends on your individual situation.

Firstly, the calculation depends on whether you are fully or partially incapacitated.

In the event of partial incapacity for work, you can receive reduced sickness allowance. This requires a medical assessment, where the doctor assesses that you are either only able to work partially or need outpatient treatment.

Sickness allowance is calculated on the basis of your income base as a self-employed person.

This can be your most recent annual income as a trader or an average over a certain period.

In addition, it is also important to be aware that there is a ceiling on how much you can receive in sickness benefit.

This ceiling is based on a maximum unemployment benefit rate.

You have the right to choose to go on sick leave at any time during a period of sickness benefit and start working on reduced hours.

Reduced sickness allowance can be paid if the municipality assesses that you are able to carry out no more than a quarter or half of your normal workload.

Rates for sickness benefit for the self-employed

Sickness benefits rates vary depending on your company's profits. The main rule, however, is that you can receive a maximum of DKK 4,550 per week (2023 rate). The sickness benefit amount is paid in arrears each month.

If you have taken out voluntary insurance, however, the amount will be at least 2/3 of the maximum rate.

Example:

Morten is a business owner and falls ill for a period of 4 weeks.

Morten meets the conditions and requirements for the payment of sickness allowance, and based on his income he can receive the maximum rate for sickness allowance of DKK 4,550 per day. week.

During the period of illness, Morten will receive: DKK 4,550 x 4 weeks = DKK 18,200.

Understand your right to sickness allowance as a self-employed person

As a self-employed person, it is crucial to know your rights in the event of illness and the financial support measures available.

Here is a checklist for the most important points to ensure that you are informed about your options and rights in case of illness:

  • Fulfillment of the employment requirement
  • Documentation and application procedure
  • Sickness allowance calculation
  • Duration of sick pay
  • Voluntary insurance

You can review these points carefully to be prepared to handle your situation with knowledge of your rights and options.

How do I apply for sickness benefit?

You can apply for sickness allowance yourself by reporting sickness absence via EasyRefund on Virk.dk.

It is worth noting that the deadline for applying for sickness allowance from the municipality is no later than three weeks after the first day of absence.

If you have taken out insurance, however, the absence must be reported no later than one week after the entitlement to sickness allowance begins.

This takes place no later than one week after the first or third day of absence, depending on the insurance.

You must remember the following when applying:

  • Documentation: When reporting sick, you must be able to document that you meet the employment requirement. This usually means that you have run a self-employed business for at least six months within the last 12 months. Of this, the last month before the absence, and that you have worked in the company for at least half of the normal weekly working hours.
  • Insurance information: If you have taken out sickness benefit insurance, you must provide information such as sums insured, type of insurance and possibly which cover you have chosen. Eg. whether you want sickness benefit from the 1st or 3rd day of absence.
  • Documentation for income: You may also be asked to provide documentation for your income in the company.

How long can I receive sick pay?

You can receive sickness benefit for a maximum of 22 weeks within a period of nine months. Your case will then be reassessed, and a decision will be made as to whether there is a basis for extending your period of sickness benefit.

Of course, you can also choose to report sick in whole or in part, so that you resume your work activity full or reduced time.

FAQ – Most frequently asked questions about sickness allowance as a self-employed person

If you have not taken out voluntary insurance, as a self-employed person you can receive a maximum of DKK 4,550 per week in sick pay.

A company is entitled to sick pay when you, as a self-employed person or an employee's spouse, are unable to work due to illness or injury. The earliest you can apply for sickness allowance from the municipality is when you have been ill for two weeks. It requires permanent residence in Denmark, tax payment in the country and that you meet the employment requirement.

If you have taken out voluntary insurance, however, you may be entitled to sickness allowance as early as the 1st or 3rd day of absence.

In 2023, the maximum amount of sickness allowance for self-employed persons in Denmark is DKK 4,550 per week. It is important to note that this amount is the upper limit and the actual payout depends on your financial situation and other relevant factors.

Sickness allowance for the self-employed is normally calculated on the basis of the company's profit. If you have taken out voluntary insurance, the daily allowance will amount to at least 2/3 of the maximum rate. It is worth mentioning that it is the municipality that assesses whether you meet the employment requirement and thus have the right to sickness allowance as a self-employed person.

The price of sickness benefit insurance for the self-employed varies depending on several factors, including insurance coverage, the selected rate (minimum or maximum), business type and the insurance company's premium rates. It is important to mention that premium rates can change, so it is a good idea to contact the insurance company directly for the most accurate and up-to-date information.

When you consider taking out sickness benefit insurance as a self-employed person, you can usually choose between the minimum and maximum rate. The minimum rate pays out 2/3 of the highest sickness benefit rate, regardless of the amount of your income. The maximum rate is calculated based on the profit in your company, and if the profit was at least a certain amount the previous year, you could get more than the minimum rate. However, it is always guaranteed that you will get at least the minimum rate.

To get precise information about premium rates and costs, it would be best to contact the insurance company you are considering taking out the policy with. Insurance companies can provide customized quotes based on the specifics of your business and the choices you make regarding insurance coverage and rate.

In addition, it may be a good idea to compare offers from several insurance companies to find the most cost-effective solution that suits your needs as a self-employed person.