Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

Denmark

Social Security (Minimum Standards) Convention, 1952 (No. 102) (Ratification: 1955)
Medical Care and Sickness Benefits Convention, 1969 (No. 130) (Ratification: 1978)

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In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on social security, the Committee considers it appropriate to examine Conventions Nos 102 (social security, minimum standards) and 130 (medical care and sickness benefits) together.

Articles 12, 29, 32(b), 56(b), 65, 66, 67, 69, 70 of Convention No. 102 and Articles 16, 28, 29 of Convention No. 130. The Committee takes note of the information provided by the Government in its report concerning: (i) minimum duration of medical care; (ii) suspension of medical care; (iii) right to complain and appeal; (iv) period of residence for calculation of old-age benefits; (v) benefits due to temporary incapacity for work; (vi) replacement rate of invalidity benefits; (vii) determination of the reference wage; and (viii) adjustment of benefits to the cost of living.

Part III (Sickness benefit), Article 22 of Convention No. 130. Calculation of the replacement rate of benefit. The Committee notes from the Government’s report that the replacement rate of the sickness benefit is 58.4 per cent which is lower than the replacement rate of 60 per cent required by Article 22 of the Convention. In this respect, the Government indicates that the reference wage applied by the Government for the purpose of the calculation of the replacement rate is higher than the reference wage which should be determined according to Article 22(6) of the Convention. The Government points out that the replacement rate of 58.4 per cent would be higher if the reference wage was determined according to Article 22(6) of the Convention. The Government also indicates that most employees in Denmark continue to receive their salary during the period of sickness according to the collective agreements.

The Committee observes that the reference wage determined by the Government refers to all unskilled male and female employees, except for managers, regardless of the type of economic activity. The Committee recalls that Article 22 of the Convention sets out the replacement rate of sickness benefits based on the reference wage of a skilled employee. The Committee further recalls that option d) of Article 22(6) of the Convention determines the reference wage as 125 per cent of the average earnings of all the persons protected. The Committee observes that this option refers to similar parameters than those used by the Government to determine the reference wage, particularly coverage of all male and female employees regardless of the type of economic activity.

The Committee requests the Government to calculate the replacement rate of the sickness benefit based on the reference wage of a skilled employee, as provided by Article 22 of the Convention. The Committee further invites the Government to assess the possibility to apply option d) of Article 22(6) of the Convention for the determination of the reference wage. Lastly, the Committee requests the Government to provide information on the provisions of the collective agreements on the payment of wages by employers during the period of an employee’s absence due to sickness, particularly on the average duration of the payment as well as the share of employees covered by such collective agreements.

Article 26 of Convention No. 130. Minimum duration of sickness benefits. The Committee notes the Government’s indication that sickness benefits are provided for 26 weeks in total, including 4 weeks of sick pay provided by employers and 22 weeks of sickness benefits provided by the local authorities. The Government further indicates that by the end of the 26th week, the local authorities shall undertake an assessment of the beneficiary’s health condition to decide on the extension of the payment of sickness benefits. In particular, the Committee observes that the payment of sickness benefits will be extended if it is assessed that a beneficiary is able to return to work. If, as a result of that assessment, it is concluded that a beneficiary is unable to return to work due to incapacity for work, such a person will undergo a job assessment process and receive a resource allowance instead of sickness benefit.

The Committee recalls that according to Article 26 of the Convention, the payment of sickness benefits may be limited to not less than 52 weeks in each case of incapacity. The Committee therefore requests the Government to provide information on the resource allowance and other benefits which may be provided to persons who have exhausted the maximum period of the payment of the sickness benefit and are still unable to work, for a period of up to 52 weeks. In this respect, the Committee requests the Government to provide information on how the benefits provided instead of sickness benefits meet the requirements of Part III of the Convention, including the level of such benefits and qualifying conditions.