HK STATE SALARY INSURANCE

Salary insurance - offers you financial security in case you lose your job. A solid membership advantage.

If you lose your job and are relegated to survive on benefits alone your monthly income – as full-time insured – will be 18,403 Kroner (2017). For most HK State members this is far less money than they normally earn. Unemployment benefits cover only about 60% of an average HK State member’s salary.
In collaboration with the union owned insurance company Alka, HK State has drawn up a collective, mandatory salary insurance scheme. This insurance costs 50 tax deductible Danish Kroner per month – 36 after tax. The fee will be included in your membership fee.

Question and answers regarding salary insurance

How does the insurance work?: With a combination of unemployment benefits and this insurance you will receive 80% of your former net salary (your salary after tax).

Salary insurance has been improved as of October 1, 2017:
If you had begun receiving unemployment benefits before October 1, 2017, the old rules apply. This means that you will receive 80% of your former salary, after the deduction of an amount that equals the labour market contribution pay plus unemployment benefits.
If your period of receiving unemployment benefits begins as of October 1, 2017 or later, the new rules apply. This means that you will receive 80% of your former salary based on the unemployment fund’s calculations after the deduction of your unemployment benefits.
How much will I receive and for how long?: You can use the salary insurance calculator to figure out how much you will receive.; For every month you receive unemployment benefits you use the same number of hours of salary insurance pay as you use hours of unemployment benefits from HK’s unemployment fund. If you are a full time insured member your salary insurance can be paid out to you for a maximum 962 hours. For the part-time insured the figure is 780 hours.
What does the insurance cost?: It costs 50 Kroner per month. The fee is the same for all members of HK State and of the HK Unemployment Fund – regardless of your salary and the length of your membership. The fee will be regulated in accordance with the price and salary index. The fee is tax deductible; this means that the insurance will cost you about 36 Kroner per month.
Who is included?: All members of HK State and of the HK Unemployment Fund are included. Furthermore, your employment must be an “ordinary non-supported job”. It doesn’t matter if you are permanently employed, temporarily employed for at least 12 months, employed for a specific project or have a fixed-term contract. Part-time insured members with a minimum salary of 15,520 per month are also covered by salary insurance. Part-time insured members with a salary below 15,520 will pay the fee to the insurance scheme, but are not eligible for coverage. You may instead be exempted from payment of your union membership fee for a period of time if you become unemployed. Civil servants and adult trainees, who pay the full fee to HK State and to the HK Unemployment Fund, are included.
Who is not included?: Certain membership groups cannot be covered by salary insurance due to the legislation regarding unemployment benefits. This applies e.g. to persons in flexible employment arrangements and to ordinary trainees. These two membership groups obviously do not pay the monthly fee of DKK 50.
From which day will I be covered?: You must have been employed for 12 months and you must have paid the insurance fee for 12 months before you become eligible for coverage.
Are there any limits to the amount of the coverage?: Some HK members have such a low salary that unemployment benefits in themselves cover 90% of their salary. In such cases the legislation prohibits payment of salary insurance. If you earn too little to get money from the insurance, you can apply for exemption from payment of union membership fee.

Possible exemption from payment of union membership fee if you earn less than 22,918: If you were a member on October 1, 2013 and if your income is insufficient for salary insurance, you may be exempted from payment of your union membership fee for a period of time if you become unemployed. This exemption applies for maximum six months – corresponding to the salary insurance period. If you become unemployed and earn less than DKK 22,918 per month you can contact HK State (telephone 33 30 42 61) and find out about your possibility for exemption of payment of your union membership fee.
Will the insurance cover a qualifying period?: Yes, the insurance will cover the entire amount of money for the qualifying period that applies after 4 months of unemployment.
What if I already have another salary insurance policy?: You are allowed more than one salary insurance. If you have an HK State salary insurance you may choose to postpone the payments from this insurance until the payments from your collective insurance plan have been terminated. This will allow you to extend the period in which you receive a supplement to your unemployment benefits. In order to determine how you may benefit from another insurance plan while also having an HK State salary insurance, you must contact your insurance company.

The background for our advantageous insurance scheme

The HK State salary insurance was introduced after a membership ballot in 2013.

A 2013 analysis by AK-samvirke (The Association of Unemployment Insurance Funds) shows for how long and how much the various existing salary insurance schemes will cover. The HK State salary insurance is extremely advantageous, both in terms of price, waiting period, termination due to age and the age limitations for taking out this insurance.

Go to the analysis

The salary insurance will for instance cover a person until the termination of unemployment benefits eligibility – i.e. retirement age. Many other insurance schemes expire when the person turns 60. The fee – 50 Kroner – is much lower than the fees for individual insurance plans.