Guide to supplementary unemployment benefits as a self-employed person
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By 9.1 min readLast Updated: 12. December 2023

Your guide to supplementary unemployment benefit as a self-employed person

The daily allowance rules vary depending on whether you run a business full-time or part-time.

When your self-employed business is registered as a side job, i.e. with only a few hours, you may be entitled to supplementary unemployment benefit.

Here you can get a handle on the rules on supplementary unemployment benefits when your business is either your main or secondary occupation.

What is supplementary daily allowance for the self-employed?

Supplementary unemployment benefits for independents is a financial benefit that is given to self-employed traders who are basically members of a unemployment insurance.

You may be entitled to the benefit when, as a self-employed person, you become partially unemployed or if you have low earnings for a period. The purpose is to supplement your finances and secure income in periods when your company does not generate the expected profit, and therefore has low earnings.

When you are self-employed and a member of a social security fund, you can under certain conditions receive supplementary daily allowance, even if you continue to run your business as a part-time job.

The conditions and rules vary, but typically it implies that the self-employed person must have run a business for a certain period and meet the requirements for

What does self-employment mean?

Independent side job refers to a situation where a person runs a business as their main occupation or has a primary occupation as an employee, but at the same time engages in a smaller, independent business as an additional activity on the side.

The independent secondary employment serves as a supplementary source of income in addition to the primary salaried employment. When a person has an independent side job, it can be in the form of running a business, consultancy work, freelance tasks or other forms of independent activities.

It is a status that arises when you start an independent business while receiving daily allowance or has the company established before you become unemployed. In order for it to be considered part-time employment, you must meet the following criteria:

  1. If you start a self-employed business on unemployment benefits, this is considered to be an independent side job.
  2. If you already have your business established before you become unemployed, it is considered part-time employment. Here, however, it applies that you must have at least 80 reported wage hours per month (53 for part-time insured) and at least one wage hour reported in 5 of the last 6 months before unemployment. 

It is also important to mention that treasure must recognize your company as self-employed. If you are not approved as self-employed by Tax, it will also not be possible to recognize your activity as a side job.

How do you qualify for supplementary daily allowance as a self-employed person?

In order to qualify for supplementary daily allowance as a self-employed person, there are some specific conditions that must be met.

First of all, you must either wholly or partially own a business with the aim of achieving a financial return.

You must also have work associated with running this business. There are some criteria that must also be met in order to be entitled to supplementary daily allowance as a self-employed person.

  1. Registration of the company – Your company must be registered with a CVR number or an SE number.
  2. Taxation – The profit or loss from your business must be taxed as an independent business.
  3. Salary and income - You must either receive salary as A-income from a company where you have decisive influence, or have B-income that is reported as self-employed to the Tax Office.

If you meet these conditions and receive daily allowance at the same time, it is possible to start an independent business and receive supplementary daily allowance instead. However, it is important to be aware that you must be an active job seeker, attend meetings called by the job center and be ready to take over full-time work at a day's notice.

Reporting your time

When you complete your daily allowance card, you must report the number of hours and minutes you have spent on your self-employment, even if there has been no income. Supplementary daily allowance can be paid for up to 30 weeks, and you have the option of extending the payment period by meeting certain requirements, including reporting working hours to the Tax Office and maintaining your business registration for 6 months.

If you do not meet the conditions for extension or wish to regain the right to supplementary unemployment benefits, it is necessary to close, sell, lease out or withdraw from your business, provided you still have hours remaining entitled to unemployment benefits.

It is important to have clear information and advice from your unemployment insurance fund in order to navigate through these rules and be sure that you understand your options as a self-employed person.

The process for supplementary unemployment benefit as a self-employed person

The process of getting supplementary unemployment benefit as a self-employed person involves several steps and considerations.

Below is a general overview of how the process typically goes:

  1. Determine your self-employment status: Identify whether your self-employment is considered a main or secondary occupation. This will affect your qualifications and the specific rules that apply to supplementary unemployment benefits.
  2. Contact your unemployment insurance fund: Contact your unemployment insurance fund and discuss your plans to be self-employed. A-kassen can provide you with information about the specific requirements and documentation required to qualify for supplementary unemployment benefit.
  3. Application for supplementary daily allowance: When you have gained clarity about the requirements, you must complete and submit an application for supplementary daily allowance to your unemployment insurance fund. This can usually be done electronically via the a-kassen's online platform.
  4. Approval of part-time employment: Your social security fund will assess whether your self-employed activity qualifies as a side job and whether it is compatible with being available for the labor market.
  5. Determining the daily allowance amount: If your part-time job is approved, the unemployment insurance fund will determine how many hours you can work in your company, without it affecting your unemployment benefit. The number of hours affects the amount of daily allowance, but income from the company does not normally affect the amount of supplementary daily allowance.
  6. Continued fulfillment of requirements: Even if you are self-employed, you still have to meet the requirements for daily allowance, such as applying for full-time work, filling out job applications and attending meetings that you are called to by the unemployment fund or the job centre.
  7. Ongoing follow-up: Your social security fund will continuously assess your situation to ensure that you continue to meet the conditions for receiving supplementary unemployment benefit.

Remember that the process can vary, and it is essential to have good communication with your unemployment insurance fund to ensure that you have accurate information and meet the requirements for supplementary unemployment benefit as a self-employed person.



Understand the rules: Supplementary daily allowance for the self-employed

Navigating the rules on supplementary unemployment benefit as a self-employed person can be complex, but it is important to understand the terms and follow the correct procedure to ensure you receive the benefits you are entitled to.

If you are considering starting an independent business or are already self-employed and a member of an unemployment fund, it is a good idea to contact your unemployment fund for guidance on your specific circumstances.

Fill in your daily allowance card when you have self-employment

You must fill in your daily allowance card yourself and report your activity; including stating the number of hours and minutes under the heading "Self-employed business". You must also do this even if you have had no income from the activity.

What should you report?

You must report:

  •       All work tasks
  •       All hours and minutes (even if no income has been generated in the period in question).

The hours you report for your self-employment will be offset against your daily allowance.



What do you need to know about the calculation of supplementary unemployment benefits?

You must be aware of the factors that come into play when calculating supplementary daily allowance.

These are:

  1. 30-week limitation - As a self-employed person with a part-time job, you are entitled to supplementary unemployment benefit for up to 30 weeks within the last 104 weeks. These weeks count regardless of whether you have work in your independent business or not.
  2. Offset of working hours – All the actual hours you spend in your business will be offset against your daily allowance payment. This also applies even if your business does not generate income.
  3. Requirements for secondary employment - In order for your self-employed business to be considered a part-time job, you must meet certain conditions. This includes having at least 80 reported wage hours per month (53 for part-time insured) and at least one wage hour reported in at least five of the last six months before your period of unemployment.
  4. Fulfillment of income requirements - To be entitled to unemployment benefit, you must meet an income requirement of at least DKK 254,328 (2023) within the last three years. The maximum inclusion is DKK 21,194 per month (2023).
  5. Flexibility in self-employment - You have the option of pausing your supplementary unemployment benefits when the company gets busy.
  6. Possibility of extension - You can apply to extend your supplementary unemployment benefit period for up to 12 weeks.
  7. Income requirements and calculation period – You must meet the established income requirements for daily allowance. If you do not meet the requirement within three years, the assessment period can be extended to five years in certain circumstances.

How to secure your right to supplementary unemployment benefit

In order to secure your right to supplementary unemployment benefits while you are self-employed as a side job, there are important steps to follow.

These steps are as follows:

  1. Meet the basic conditions:
  •       Register at your local job centre.
  •       Be an active job seeker.
  •       Participate in the mandatory (called) meetings.
  •       Submit daily allowance card in a timely manner.
  1. Daily allowance card and self-employment:
  •       Enter the number of hours and minutes spent in the company on the daily allowance card.
  •       Regardless of income, the hours are set off against the daily allowance.
  •       Record all work tasks performed, including outreach, administrative work and transportation time.
  1. Termination of supplementary daily allowance:
  •       Your right to supplementary unemployment benefit ends when the allocated weeks are used up, regardless of the workload in the company.
  1. Re-acquisition of the right to supplementary unemployment benefit:
  •       Report more than 118 paid hours for at least 6 months to the Tax Office within 12 consecutive months.
  •       Achieve more than 54 paid hours in at least 13 periods or more than 27 paid hours in at least 26 weeks.
  •       Alternatively, you can earn DKK 169,548 from A and B income as well as profit from self-employment within an income year without unemployment benefits.
  1. Extension of the right to supplementary daily allowance:
  •       Get paid supplementary daily allowance for the entire month in which the right expires.
  •       Extend the right by 4 weeks by meeting the requirements for the number of hours and periods.
  •       The maximum possible extension is 12 weeks.
  1. In case of lack of extension or new right:
  •       If you do not meet the requirements, it is necessary to close, sell or withdraw from the company in order to receive regular unemployment benefits.
  •       Here you must ensure that there are still hours left with the right to unemployment benefit. 
Guide to supplementary unemployment benefits as a self-employed person
By 9.1 min readLast Updated: 12. December 2023

Your guide to supplementary unemployment benefit as a self-employed person

The daily allowance rules vary depending on whether you run a business full-time or part-time.

When your self-employed business is registered as a side job, i.e. with only a few hours, you may be entitled to supplementary unemployment benefit.

Here you can get a handle on the rules on supplementary unemployment benefits when your business is either your main or secondary occupation.

What is supplementary daily allowance for the self-employed?

Supplementary unemployment benefits for independents is a financial benefit that is given to self-employed traders who are basically members of a unemployment insurance.

You may be entitled to the benefit when, as a self-employed person, you become partially unemployed or if you have low earnings for a period. The purpose is to supplement your finances and secure income in periods when your company does not generate the expected profit, and therefore has low earnings.

When you are self-employed and a member of a social security fund, you can under certain conditions receive supplementary daily allowance, even if you continue to run your business as a part-time job.

The conditions and rules vary, but typically it implies that the self-employed person must have run a business for a certain period and meet the requirements for

What does self-employment mean?

Independent side job refers to a situation where a person runs a business as their main occupation or has a primary occupation as an employee, but at the same time engages in a smaller, independent business as an additional activity on the side.

The independent secondary employment serves as a supplementary source of income in addition to the primary salaried employment. When a person has an independent side job, it can be in the form of running a business, consultancy work, freelance tasks or other forms of independent activities.

It is a status that arises when you start an independent business while receiving daily allowance or has the company established before you become unemployed. In order for it to be considered part-time employment, you must meet the following criteria:

  1. If you start a self-employed business on unemployment benefits, this is considered to be an independent side job.
  2. If you already have your business established before you become unemployed, it is considered part-time employment. Here, however, it applies that you must have at least 80 reported wage hours per month (53 for part-time insured) and at least one wage hour reported in 5 of the last 6 months before unemployment. 

It is also important to mention that treasure must recognize your company as self-employed. If you are not approved as self-employed by Tax, it will also not be possible to recognize your activity as a side job.

How do you qualify for supplementary daily allowance as a self-employed person?

In order to qualify for supplementary daily allowance as a self-employed person, there are some specific conditions that must be met.

First of all, you must either wholly or partially own a business with the aim of achieving a financial return.

You must also have work associated with running this business. There are some criteria that must also be met in order to be entitled to supplementary daily allowance as a self-employed person.

  1. Registration of the company – Your company must be registered with a CVR number or an SE number.
  2. Taxation – The profit or loss from your business must be taxed as an independent business.
  3. Salary and income - You must either receive salary as A-income from a company where you have decisive influence, or have B-income that is reported as self-employed to the Tax Office.

If you meet these conditions and receive daily allowance at the same time, it is possible to start an independent business and receive supplementary daily allowance instead. However, it is important to be aware that you must be an active job seeker, attend meetings called by the job center and be ready to take over full-time work at a day's notice.

Reporting your time

When you complete your daily allowance card, you must report the number of hours and minutes you have spent on your self-employment, even if there has been no income. Supplementary daily allowance can be paid for up to 30 weeks, and you have the option of extending the payment period by meeting certain requirements, including reporting working hours to the Tax Office and maintaining your business registration for 6 months.

If you do not meet the conditions for extension or wish to regain the right to supplementary unemployment benefits, it is necessary to close, sell, lease out or withdraw from your business, provided you still have hours remaining entitled to unemployment benefits.

It is important to have clear information and advice from your unemployment insurance fund in order to navigate through these rules and be sure that you understand your options as a self-employed person.

The process for supplementary unemployment benefit as a self-employed person

The process of getting supplementary unemployment benefit as a self-employed person involves several steps and considerations.

Below is a general overview of how the process typically goes:

  1. Determine your self-employment status: Identify whether your self-employment is considered a main or secondary occupation. This will affect your qualifications and the specific rules that apply to supplementary unemployment benefits.
  2. Contact your unemployment insurance fund: Contact your unemployment insurance fund and discuss your plans to be self-employed. A-kassen can provide you with information about the specific requirements and documentation required to qualify for supplementary unemployment benefit.
  3. Application for supplementary daily allowance: When you have gained clarity about the requirements, you must complete and submit an application for supplementary daily allowance to your unemployment insurance fund. This can usually be done electronically via the a-kassen's online platform.
  4. Approval of part-time employment: Your social security fund will assess whether your self-employed activity qualifies as a side job and whether it is compatible with being available for the labor market.
  5. Determining the daily allowance amount: If your part-time job is approved, the unemployment insurance fund will determine how many hours you can work in your company, without it affecting your unemployment benefit. The number of hours affects the amount of daily allowance, but income from the company does not normally affect the amount of supplementary daily allowance.
  6. Continued fulfillment of requirements: Even if you are self-employed, you still have to meet the requirements for daily allowance, such as applying for full-time work, filling out job applications and attending meetings that you are called to by the unemployment fund or the job centre.
  7. Ongoing follow-up: Your social security fund will continuously assess your situation to ensure that you continue to meet the conditions for receiving supplementary unemployment benefit.

Remember that the process can vary, and it is essential to have good communication with your unemployment insurance fund to ensure that you have accurate information and meet the requirements for supplementary unemployment benefit as a self-employed person.



Understand the rules: Supplementary daily allowance for the self-employed

Navigating the rules on supplementary unemployment benefit as a self-employed person can be complex, but it is important to understand the terms and follow the correct procedure to ensure you receive the benefits you are entitled to.

If you are considering starting an independent business or are already self-employed and a member of an unemployment fund, it is a good idea to contact your unemployment fund for guidance on your specific circumstances.

Fill in your daily allowance card when you have self-employment

You must fill in your daily allowance card yourself and report your activity; including stating the number of hours and minutes under the heading "Self-employed business". You must also do this even if you have had no income from the activity.

What should you report?

You must report:

  •       All work tasks
  •       All hours and minutes (even if no income has been generated in the period in question).

The hours you report for your self-employment will be offset against your daily allowance.



What do you need to know about the calculation of supplementary unemployment benefits?

You must be aware of the factors that come into play when calculating supplementary daily allowance.

These are:

  1. 30-week limitation - As a self-employed person with a part-time job, you are entitled to supplementary unemployment benefit for up to 30 weeks within the last 104 weeks. These weeks count regardless of whether you have work in your independent business or not.
  2. Offset of working hours – All the actual hours you spend in your business will be offset against your daily allowance payment. This also applies even if your business does not generate income.
  3. Requirements for secondary employment - In order for your self-employed business to be considered a part-time job, you must meet certain conditions. This includes having at least 80 reported wage hours per month (53 for part-time insured) and at least one wage hour reported in at least five of the last six months before your period of unemployment.
  4. Fulfillment of income requirements - To be entitled to unemployment benefit, you must meet an income requirement of at least DKK 254,328 (2023) within the last three years. The maximum inclusion is DKK 21,194 per month (2023).
  5. Flexibility in self-employment - You have the option of pausing your supplementary unemployment benefits when the company gets busy.
  6. Possibility of extension - You can apply to extend your supplementary unemployment benefit period for up to 12 weeks.
  7. Income requirements and calculation period – You must meet the established income requirements for daily allowance. If you do not meet the requirement within three years, the assessment period can be extended to five years in certain circumstances.

How to secure your right to supplementary unemployment benefit

In order to secure your right to supplementary unemployment benefits while you are self-employed as a side job, there are important steps to follow.

These steps are as follows:

  1. Meet the basic conditions:
  •       Register at your local job centre.
  •       Be an active job seeker.
  •       Participate in the mandatory (called) meetings.
  •       Submit daily allowance card in a timely manner.
  1. Daily allowance card and self-employment:
  •       Enter the number of hours and minutes spent in the company on the daily allowance card.
  •       Regardless of income, the hours are set off against the daily allowance.
  •       Record all work tasks performed, including outreach, administrative work and transportation time.
  1. Termination of supplementary daily allowance:
  •       Your right to supplementary unemployment benefit ends when the allocated weeks are used up, regardless of the workload in the company.
  1. Re-acquisition of the right to supplementary unemployment benefit:
  •       Report more than 118 paid hours for at least 6 months to the Tax Office within 12 consecutive months.
  •       Achieve more than 54 paid hours in at least 13 periods or more than 27 paid hours in at least 26 weeks.
  •       Alternatively, you can earn DKK 169,548 from A and B income as well as profit from self-employment within an income year without unemployment benefits.
  1. Extension of the right to supplementary daily allowance:
  •       Get paid supplementary daily allowance for the entire month in which the right expires.
  •       Extend the right by 4 weeks by meeting the requirements for the number of hours and periods.
  •       The maximum possible extension is 12 weeks.
  1. In case of lack of extension or new right:
  •       If you do not meet the requirements, it is necessary to close, sell or withdraw from the company in order to receive regular unemployment benefits.
  •       Here you must ensure that there are still hours left with the right to unemployment benefit.