The Difference between Unemployment Insurance Funds and Trade Unions
Got your finances sorted after graduation? Learn the difference between trade unions (fagforening), unemployment insurance funds (a-kasse), unemployment benefits (dagpenge) and social assistance (kontanthjælp).
What’s the difference between an unemployment insurance fund and a trade union? Not all students can answer this question. But it can significantly impact your finances when you graduate.
”An a-kasse is an unemployment insurance. By becoming a member of an unemployment insurance fund, you make sure you will be able to get unemployment benefits if you end up without a job,” says Jannik Talleruphuus, career adviser at Akademikernes A-kasse.
A trade union can help you with the legal aspects of working conditions and employment contracts, but it’s the unemployment insurance fund that ensures your eligibility for unemployment benefits after you finish your studies.
But what’s the difference between unemployment benefits and social assistance? Can’t you skip the unemployment insurance fund membership and just apply for social assistance instead?
“You can apply for social assistance through your local municipality, but the amount you receive will usually be significantly lower,” Jannik Talleruphuus explains.
In short, social assistance is an emergency solution for people who are unable to support themselves. It’s designed to help you survive – nothing more – and it requires you to first use up any funds you might have. This means you use up your savings first and sell your house, car and anything else of value.
| Akademikernes A-kasse (unemployment insurance fund) |
Fagforening (union) |
| Helps you when you are unemployed | Helps you while employed |
| Offers you advice about the rules and regulations of receiving benefits | Advices you with regards to terms of employment |
| Pays your benefits | Helps you negotiate wages |
| Offers courses for students | Offers networks within your profession |
| Helps you start or change your career | Offers legal help |
| Offers guidance with regards to your job search situation | Offers guidance with regards to your job situation |
The unemployment insurance fund is important to students and recent graduates for three key reasons:
- In most cases, you will recieve more money as an unemployment benefit recipient than as a recipient of social assistance.
- You get highly qualified career advice from consultants who know you, your profession and your situation.
- You’ll get advice, participate in workshops and receive other offers to help you get a job faster.
Financial safety net and job creator
We are both a financial safety net and a job creator for academics. We work to highlight your value as an academic in the job market and bring members and companies together with a focus on matching the right skills with the right jobs.
The benefits of being a newly graduated member of an unemployment insurance fund
At Akademikernes A-kasse, we will do everything we can to help you secure your first job after graduation so you can start using your talents.
You will receive advice and support from our career consultants, and we offer a wide range of courses, workshops, and other services for you, all available digitally.
We also know that money doesn’t grow on trees for a recent graduate, so it might be nice to know that Akademikernes A-kasse is one of Denmark’s most affordable unemployment insurance funds. The price for a full-time membership is DKK 499 per month as of 2025. This gives you the best service at the best price.
We hope you find a job quickly, but you should know that we are here for you if your employment situation changes.