DENMARK - Nearly one million pensioners and unemployed Danes are losing out to working people as their pensions and benefits lag further behind wages, Danish experts claim.
Experts at Copenhagen University said that more than 900,000 people are falling short because of poor governmental regulation that persists in keeping the state pension and benefits behind the development of the country’s wage structure.
Jørgen Birk Mortensen (pictured), lecturer and expert in economics at the University of Copenhagen, said: “The ever increasing difference between wages and state benefits contributes to increase the social differences - between rich and poor - in the society.”
Currently, the maximum unemployment benefit rate is DKR14,000 a month, but if benefits had kept up with wages in the past decade it would have been DKR17,000.
However, in the course of the past ten years, wages have increased 17% more than pensions and benefits have.
Mortensen added that the widening gap between wages on the one hand and benefits and pensions on the other would have to be reversed to prevent an increasing inequality in Danish society.
Presently, according to the Danish Economic Council, when benefits regulation is not aligned with wage structure, it affects approximately 430,000 pensioners without additional pension schemes and 440.000 Danes who are unemployed and receiving benefits.
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