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The 2020 Finance Act – why this might be of relevance to you

The 2020 Finance Act – why this might be of relevance to you

In December 2019, the Danish government and four parties set up Denmark’s Finance Act 2020, which announces Denmark’s priorities in welfare, education and the green transition.

Last modified: 13.01.2020


Social welfare

If you have young children attending daycare or kindergarten institutions, it might be of special interest to you that the Danish government has decided that more adults are needed to take proper and professional care of the children in the Danish daycare and kindergarten institutions.

Consequently, from 2020-2025, until the act has been gradually implemented, the government has set aside DKK 500 million in 2020 and by 2025 DKK 1.6 billion to improve the adult to child ratio so that there will be at least one adult per three children in daycare institutions and one adult per six children in kindergartens by 2025.

The aim is to improve the overall level of quality of the daycare and kindergarten institutions by ensuring that each institution has qualified and well educated staff to take care of the children. Looking ahead to 2025, the government will prepare a new “children’s plan” that will focus on improving the overall standards of the daycare and kindergarten institutions.  


No fee on Danish language classes

With the approval of the 2020 Finance Act, from July 1, 2020 international students and employees seeking studies or work in Denmark no longer have to pay the mandatory participation fee to enrol in state subsidised Danish language classes. Keep an eye on the ISU website about these new changes.


Repeal of the residence requirement

The former government introduced a residence requirement for international workers stating that in order to be eligible to receive unemployment benefits (arbejdsløshedsdagpenge) one must have stayed in Denmark or another EU/EEA country for at least six of the past 12 years.

The Finance Act for 2020 repeals the residence requirement with effect from February 1, 2020.

The parties also agreed to introduce a transitional arrangement that accommodates the persons who have canceled their A-kasse membership after the residence requirement was introduced in January 2019.

This arrangement foresees that the affected persons must be able to re-enroll retroactively as A-kasse members from the time of cancellation, if they have been de-enrolled due to not meeting the residence requirement during the period in which the requirement was applicable.


Focus on sustainability and environment friendly solutions

The 2020 Finance Act demonstrates a strong focus on sustainability and environment friendly solutions. Consequently, the tax on plastic bags and disposable cutlery will triple and it will be less expensive to invest in more climate friendly transportation, among other things.

If you are a smoker, be warned that the prices on cigarettes will go up in order to prevent children and young adults from smoking.


Establishment card

International graduates of a Danish Bachelor Degree programme or a Professional Bachelor Degree programme can now apply for an establishment card, when they have finished their study programmes. Graduates who have been awarded a Danish master’s degree or PhD degree by a Danish university can apply for an establishment card up to one year after graduation. Workers employed in certain positions may be able to extend the establishment card period with one extra year.