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
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