Labour Market Pension and Insurance

For years, we have administered schemes for the labour market. These include pension and insurance schemes both targeted at citizens and companies.

Specifically, the task is to collect contributions and pay benefits and subsidies – from holiday pay to reimbursements for employers having trainees.

Read about the background of the pension and insurance schemes

ATP Livslang Pension

ATP was established in 1964 to supplement the Danish state pension, and almost all Danish citizens contribute to ATP during their working lives.

ATP Livslang Pension is a lifelong pension, but amounts below a certain threshold are paid as a lump sum. It is a collective pension insurance scheme under which you and your employer or the Danish state contribute to your ATP pension.

This means that ATP contributions are paid not only from wages, but also from unemployment benefits, sickness benefits and other types of transfer income. Self-employed persons may choose to contribute to ATP to make additional pension provisions for themselves.

Legal framework

ATP is a statutory scheme. Since ATP's establishment in 1964, the ATP Act has been supplemented by Executive Orders.

See the ATP Act (in Danish)

ATP's Supervisory Board

Torben M. Andersen, Professor at the Department of Economics and Business Economics, Aarhus University, is Chairman of ATP's Supervisory Board.

See ATP's Supervisory Board and Board of Representatives

Information and self-service for citizens and businesses

Information on ATP Livslang Pension, contact details and self-service can be found at lifeindenmark.dk and virk.dk.

Lifeindenmark.dk

Virk.dk

SUPP

SUPP is a voluntary scheme giving disability pensioners the opportunity to save for lifelong pension.

More than five in ten disability pensioners contribute to SUPP, the Supplementary Labour Market Pension Scheme for Disability Pensioners.

The advantage of SUPP is that the scheme gives disability pensioners the opportunity to save for lifelong pension.

SUPP's assets are included in ATP's asset management, and SUPP members accrue current guaranteed lifelong pension rights in the same way as ATP members.

Legal framework and administration

SUPP is a statutory scheme, established on 1 January 2003. Disability pensioners register for the scheme with the municipality, and it is administered by ATP.

If you have any questions, please call Udbetaling Danmark on tel. +45 70 12 80 61. They would also be happy to send you a registration form. Udbetaling Danmark can help you complete the form if you are unsure about anything.

Read the Act behind SUPP (in danish)

Information and self-service for citizens and businesses

Information on SUPP, contact details and self-service can be found at borger.dk:

borger.dk (in Danish)

Obligatorisk Pensionsordning (Mandatory Pension Scheme)

Since 1 January 2020, ATP has been administering the Mandatory Pension Scheme which is aimed at recipients of a number of transfer incomes. 

The Mandatory Pension Scheme has been adopted by the Danish Parliament to ensure that Danes are saving up more for their pensions, even if they receive transfer income for a short or long period. 

The municipalities, unemployment insurance funds, Udbetaling Danmark and The Danish Agency for Institutions and Educations Grants are the ones contributing the funds to the Mandatory Pension Scheme. The contributions will be paid into ATP Livslang Pension (ATP Lifelong Pension).

The Mandatory Pension will be paid out as part of ATP Livslang Pension (ATP Lifelong Pension) when you reach the state retirement age.

Legal framework

View the acts and executive orders concerning Mandatory Pension (In danish) 

Information and self-service for citizens and businesses

Information on Mandatory Pension can be found on:

borger.dk (In danish) 
Virk.dk (In danish) 

FerieKonto and FeriepengeInfo

FerieKonto collects payments in lieu of untaken days of holiday from employers and is responsible for making such payments to wage earners. Payments in lieu of untaken days of holiday includes holiday pay for hourly employees and holiday pay for dismissed employees who receive salary during their vacation but who, at the time of dismissal, had accrued some holiday pay that could be used.

It is Feriekonto’s task to administer holiday pay for wage earners in the cases where nothing else has been agreed upon in a collective agreement. Employers report their employees' holiday entitlement via eIndkomst (income register administered by SKAT) and pay the amount to FerieKonto. Wage earners can claim their holiday pay using the self-service option at borger.dk.

Feriepengeinfo

FerieKonto is in charge of Feriepengeinfo, which is a digital solution that provides wage earners with a comprehensive overview of their accrued holiday pay.

It is Feriepengeinfo’s task to display payments in lieu of untaken days of holiday to wage earners where it has been agreed upon in a collective agreement that the company or a holiday fund is to pay them. Employers report payments in lieu of untaken days of holiday via eIndkomst. Wage earners can have such payments paid out via the self-service solution on borger.dk.

New Danish Holiday Act

On 1 September 2020, we will have a new Holiday Act in Denmark. The new rules for holidays mean that wage earners will henceforth be able to take their holidays as they earn them. The purpose is to let those who are new to the labour market take paid holidays from the beginning of their working life. You can read more about what the new Danish Holiday Act means for you as an employer at  www.virk.dk/ny-ferielov

Information and self-service for citizens and businesses

Information on Feriekonto, contact details and self-service can be found at lifeindenmark.dk and virk.dk.

lifeindenmark.dk

Virk.dk FerieKonto

Virk.dk Feriepengeinfo

Lønmodtagernes Feriemidler

Lønmodtagernes Feriemidler is a new fund which manages the holiday allowance earned by employees during the transition year until the new Holiday Act becomes effective.

The transition year is from 1 September 2019 to 31 August 2020.

The fund has been established to ensure that employers do not have to pay double holiday allowance to their employees in one year. Instead the holiday allowance will be turned into savings with Lønmodtagernes Feriemidler.

The employees will receive the savings when they reach state pension age or leave the Danish labour market.

Legal framework

Lønmodtagernes Feriemidler was created in 2019 as part of the new Holiday Act.

Read about the act on Lønmodtagernes Feriemidler (In Danish)

Information and self-service for citizens and businesses

Information, contact details and self-service (website) for Lønmodtagernes Feriemidler can be found at borger.dk and virk.dk:

lifeinddenmark.dk

Contact Lønmodtagernes Feriemidler

virk.dk

Contact Lønmodtagernes Feriemidler (In Danish)

AUB

AUB (Employers’ Reimbursement System) pays e.g. reimbursement to public-sector and private-sector employers paying wages to apprentices and trainees while they are attending college or in training programmes. The AUB scheme includes the Praktikplads-AUB scheme.

The purpose of AUB is to ensure that more internships are created for the vocational training programmes. AUB therefore helps ensure a high specialist level in the labour market.

All employees paying ATP contributions are covered by the AUB scheme.

In addition to employers, apprentices and trainees, colleges and committees may obtain funding from AUB for training programmes and internships both in Denmark and abroad.

For instance, AUB pays wage reimbursement and transport during college stays, reimbursement for board and residence as well as reimbursement for internships abroad.

Praktikplads-AUB

The purpose of Praktikplads-AUB is also to create more internships for the vocational training programmes. Every year, employers receive a target for how many trainees they need to hire before the end of the year. The employers who exceed their trainee goals may be eligible for a bonus, while those who do not meet their targets must pay a contribution to Praktikplads-AUB.

Employees who last year paid ATP contributions for one or more vocationally trained employee are included.

VEU compensation

The VEU compensation is aimed at improving the chances for adult education and continuing education of both skilled and unskilled workers. When an employee decides to take a course or a degree, the employer can apply for compensation for the salary or the employee can apply for compensation if he or she is not paid during the educational activities.

Legal framework

AUB was established in 1977 as an independent institution.

See the Act behind AUB

Management

AUB's Supervisory Board is composed of the social partners and consists of a chairman and eight representatives of the social partners. Niels Fog is Chairman of the Supervisory Board.

See the AUB Supervisory Board (in Danish)

Information and self-service for citizens and businesses

Information on AUB, contact details and self-service can be found at borger.dk and virk.dk:

borger.dk (in Danish)

virk.dk

Labour Market Insurance AES

Labour Market Insurance (Arbejdsmarkedets Erhvervssikring – AES) is an independent institution administrated by the Danish Labour Market Supplementary Pension Scheme (Arbejdsmarkedets Tillægspension – ATP).

AES follows the applicable regulations in determining whether an injury or illness can be classified as an industrial injury. When an injury or illness can be recognised as an industrial injury, AES then decides the amount of compensation payable.

AES funds and pays compensation for recognised occupational diseases. It is mandatory for all private and public sector employers in Denmark to contribute to AES. In addition, AES charges an industrial injury tax on behalf of SKAT (the Danish Customs and Tax Administration).

AES may also be called upon to provide an advisory opinion in private compensation proceedings, where citizens have been injured during their leisure time, for example. AES also deals with a variety of other minor issues, such as cases involving compensation for victims of the German occupation.

A brief introduction to the establishment of Labour Market Insurance

AES was established on 1 July 2016 through a merger between what was previously the Danish National Board of Industrial Injuries and parts of the former AES – The Labour Market Occupational Diseases Fund.

AES has offices in Copenhagen and Hillerød and additional facilities are scheduled to open in Haderslev and Vordingborg over the course of 2016 and 2017 under the scheme to move public sector administrative bodies to the provinces.

The project to establish AES also involved setting up a new, independent control unit in ATP under the name of the Labour Market Insurance Claims Review (Arbejdsmarkedets Erhvervssygdomskontrol – AESK). AESK checks the rulings handed down by AES and can appeal decisions about occupational diseases to the National Social Appeals Board.

Legal framework

Labour Market Insurance (AES) was established as an independent institution in 2016.

See the Act behind AES (in Danish)

Management

AES is managed by a Supervisory Board and a CEO. The Supervisory Board of AES is composed of the two sides of industry and consists of a chairman and eight representatives of the social partners. Bente Overgaard chairs the Supervisory Board.

See the AES’ Supervisory board

Information and self-service for citizens and businesses

Information on AES, contact details and self-service can be found at lifeindenmark.dk, virk.dk and aes.dk:

lifeindenmark.dk

virk.dk

AES.dk

The Labour Market Insurance Claims Review (AESK)

The Labour Market Insurance Claims Review (AESK) is a unit under the Supervisory Board of ATP. The unit is tasked with checking that AES makes correct decisions in cases to do with occupational diseases.

AESK has up to four weeks to evaluate the information on which a decision was made. 

If AESK disagrees with a decision, AESK appeals the decision to the National Social Appeals Board, which then makes the final decision in the case.

Legal framework

The Danish Consolidated Workers’ Compensation Act, as amended by Act no. 395 of 02/05/2016 (in Danish)

LG

LG ensures that employees receive wages and pension benefits if a company goes into bankruptcy.

The objective of LG (the Employees' Guarantee Fund) is to ensure that employees receive wages, holiday allowance, accrued pension benefits etc. if their employer is declared bankrupt, dies or otherwise goes out of business.

LG also helps to ensure that the employer pays wages to employees when a company is subject to financial reconstruction. This not only benefits the employees; it also increases the chances of preserving the workplace.

Legal framework

LG was established in 1972 and is part of the Danish social safety net. LG is an independent institution, managed by the social partners and governed by a special legal statute.

See ACTs and Executive Orders on LG (in danish)

Management and Supervisory Board

The ATP Group is responsible for the administration of LG, and LG and ATP Livslang Pension (Lifelong Pension) ​share the same Supervisory Board and Board of Representatives.

See Supervisory Board and Board of Representatives

Statistics about LG

How many bankruptcies are filed, and how much money is disbursed?

Se LG’s figures on bankruptcy fillings, amount disbursed and discontinued companies (in Danish)

Information and self-service for citizens and businesses

Information on LG, contact details and self-service can be found at lifeindenmark.dk and virk.dk:

lifeindenmark.dk

virk.dk

Tax Reductions for Senior Citizens

Tax Reductions for Senior Citizens provides tax reductions for senior citizens who choose to remain in the labour market rather than taking early retirement.

Skattenedslag for seniorer is open to people born between 1946 and 1952. If they choose to continue working, they are eligible for tax reductions.

The political objective of the scheme is to encourage employees and self-employed persons to remain in the labour market after age 60.

As of 31 December 2017 the scheme Skattenedslag for seniorer has been shut down. However, in 2018, the Danish Parliament agreed to open up the possibility for senior citizens to have their employment rate recalculated up until 31 March 2019. Other than that, the rules for qualifying for tax reductions are unchanged. Consequently, the SFS scheme will reopen to process these cases in 2019.

Administration shared between ATP and SKAT

Skattenedslag for seniorer is administered by SKAT (the Danish Customs and Tax Administration) and ATP. While ATP calculates and provides information on the employment rate, SKAT calculates the size of the tax reduction, if any.

Data from the ATP collection forms are used to calculate the employment rate. In order to be eligible for a tax reduction of up to DKK 100,000, the employment rate of senior citizens for the five years in question must be at least 90 per cent.

Legal framework and management

The scheme is a temporary measure, which will subsequently be assessed against the current employment situation in the labour market.

Read the Act behind Skattenedslag for seniorer (in Danish)

Information and self-service for citizens

Information on Skattenedslag for seniorer, contact details and self-service can be found at borger.dk:

borger.dk (in Danish)

Barsel.dk

Barsel.dk is a statutory scheme covering the part of the private sector labour market that is not covered by other approved maternity/paternity compensation schemes.

Barsel.dk collects contributions from companies and reimburses companies that pay wages to employees on maternity or paternity leave.

Barsel.dk is a mandatory scheme based on self-service and automatic disbursement.

The objective is to compensate companies for expenses incurred when employees are on maternity or paternity leave. That way, the payroll cost is reduced for companies when employees are on maternity or paternity leave. Ultimately, Barsel.dk helps to promote gender equality in the private sector labour market.

Legal framework and administration

On 1 October 2006, the Danish Act on Maternity Equalisation in the Private Labour Market (Lov om barselsudligning på det private arbejdsmarked) took effect. Barsel.dk covers the part of the private sector labour market that is not covered by other approved maternity/paternity compensation schemes.

The relevant legislation is administered by the Danish Ministry of Employment, while ATP is responsible for the administration of Barsel.dk.

Information and self-service for businesses

Information on Barsel.dk, contact details and self-service can be found at virk.dk:

virk.dk

The Danish Labour Market Fund for Posted Workers (AFU)

AFU – Arbejdsmarkedets Fond for Udstationerede was established on 18 June. The fund is a new labour market fund responsible for paying out wages/salaries owing to wage earners posted to Denmark by foreign enterprises.

The establishment of AFU by law on 18 June implements an EU Directive from 2014 concerning the posting of workers as part of the exchange of services.

AFU can pay out wages/salaries, pensions, holiday pay, allowances etc. if the work performed is covered by a collective agreement, and the case has been heard by a labour court. The foreign enterprise must also be domiciled in the EU/EEA, and an attempt must have been made to recover the outstanding account from the foreign enterprise subsequent to the hearing of the case by the labour court.

All Danish employers who pay ATP contributions for their employees to the Labour Market Supplementary Pension Fund, and foreign employers who temporarily supply a service in Denmark and who do not pay ATP contributions for their employees, must pay contributions to the AFU scheme.

Read about contributions to the Danish Labour Market Fund on virk.dk

Legal framework and management

AFU is an independent, self-governing institution, managed by the social partners and governed by a special legal statute.

See the Act behind AFU

Administration and Supervisory Board

The ATP Group is responsible for the administration of AFU, and the AFU Supervisory Board is the same as the Supervisory Board of ATP Lifelong Pension.

See ATP’s Supervisory Board and Board of Representatives

Information and self-service for businesses

Information on AFU, contact details and self-service can be found at virk.dk:

virk.dk