Newly graduates on unemployment Benefits are exempted from Administrative Fees and CA Legal Aid Membership Fees
As of 1 April 2024, unemployed newly educated individuals receiving reduced unemployment benefits are exempt from paying administrative contribution to CA, amounting to 147 DKK/month.
The administrative contribution constitutes a portion of the membership fee, which the unemployment insurance fund receives for administration and operation purposes. Consequently, the total membership fees are reduced from 528 DKK/month to 381 DKK/month.
Simultaneously, members within this category are also exempted from paying CA Legal Support membership fees, provided they are enrolled in the program.
Who is exempted from paying administrative fees and CA Legal Aid membership fees?
Unemployed members receiving unemployment benefits at the rate for newly graduates are exempt from paying administrative fees and any CA Legal Support membership fees once their rate is reduced after 481 hours of benefit payments.
When does the exemption take effect?
The lower unemployment benefit rate applies from the moment the member receives their 482nd benefit payment hour, which can occur at any time within a month.
The reduction in membership fees takes effect from the 1st of the month following the reduction in the unemployment benefit rate. If, for instance, the 482nd hour falls in the middle of a month, the reduction in membership dues will start from the 1st of the following month.
If a member has already paid the full membership fees for months in which they are entitled to a lower rate, we will refund the excess amount paid within 14 days.
The same applies to the CA Legal Aid membership fees.
When does the exemption cease?
The exemption from paying administrative fees ceases if the member does not receive unemployment benefits, participate in wage subsidies, or receive sickness benefits for two consecutive months. This is because employed members do not require the same financial assistance.
In such cases, we will collect the full amount from the 1st of the subsequent month, always until the end of a quarter. We do not adjust for previously collected amounts.
Why isn't the membership due further reduced?
We can only determine the part of the membership dues covering the administrative fee to CA. The remaining 381 DKK/month of the membership dues are paid directly to the state and ATP.
Why does the reduction only apply from 1 April 2024?
CA's board decided to reduce the membership fee in December 2023. However, according to the rules that apply to the governing unemployment insurance funds, such changes can only take effect with a 3-month notice period, ending at the conclusion of a month.
Consequently, the reduction in membership fee for newly graduates on reduced unemployment benefits can only be implemented from 1 April 2024, at the earliest.