Definition

Wage subsidy

What does it mean?

Wage subsidy (løntilskud) is a public employment subsidy paid to employers who hire unemployed people facing labour market barriers — long-term unemployment, disability, age or lack of recent experience.

Subsidy covers part of wages for a defined period while employee is upskilled and integrated. Arranged via job centre; employee is ordinary employee with full rights except subsidy is invisible on payslip.

Can be stepping stone to permanent employment — perform well and negotiate retention before subsidy ends. On dagpenge, report subsidised employment hours and income to a-kasse.

Differs from company internship (no wage) and ordinary employment (no subsidy). Clarify contract type and duration with job centre and employer.

Magnus Villumsen, Content Creator at Arbejd.com
Defined by Arbejd.com

Magnus Villumsen

Content Creator
Last updated
March 7, 2026