Audit Office reveals financial impact of shortened workweek in Denmark

The National Audit Office has conducted an overarching assessment of the financial implications of shortening the workweek for the government and municipalities concerning wages and associated costs.

The result of their analysis indicates a potential expense of 280 million DKK.

Additionally, the government and municipalities could benefit from an extra 100 million DKK in taxes.

However, this projection is contingent upon no efficiencies being achieved in the health, social care, and education sectors.

It is also expected that employees working reduced hours will retain their existing hourly rates.

The Audit Office further estimated that if the workweek for employees in the private sector is shortened by three hours, it could lead to an increased financial burden on businesses amounting to 500 million DKK in higher wage, pension, and labor market expenses.

In response to questions from MP Beini Johannesen regarding the financial consequences of a shortened workweek, Minister Ingilín D. Strøm provided insights.

Tripartite Negotiations

When discussions began on reducing the workweek, a tripartite negotiation framework was established, including all parties involved in the labor market.

Different estimates have been made regarding the costs associated with a shorter workweek.

However, there is significant uncertainty surrounding all the assessments.

Furthermore, the parties within the tripartite negotiation framework are not in agreement on the methods of calculation.

According to the coalition agreement, the workweek is intended to gradually reduce to 37 hours.