Regulatory Alerts2023-12-12
Order on Membership, Contribution Liability, Calculation and Reporting of Contributions to the Labour Market Supplementary Pension
The Danish Ministry of Employment issued this Order to regulate membership, contribution liability, calculation, and reporting for the Labour Market Supplementary Pension (ATP) effective January 1, 2024. It mandates that employers report monthly ATP contributions via the income register, specifying CVR/SE numbers and applicable contribution rates based on employee hours and employment type. The Order establishes specific annual contribution rates (A through F sats) and detailed tables for calculating per-period contributions for monthly, bi-weekly, weekly, and casual workers.
Order on Membership, Contribution Liability, Calculation and Reporting of Contributions to the Labour Market Supplementary Pension
Pursuant to Section 2, paragraph 3, Section 3, paragraph 1, Section 15, paragraph 5, Section 30, paragraph 1, and Section 34 of the Act on the Labour Market Supplementary Pension, cf. Act Consolidation No. 1110 of 10 October 2014, as amended by Act No. 1159 of 8 June 2021, and after consultation with the Minister of Finance and upon recommendation, consultation, and negotiation with the Board of the Labour Market Supplementary Pension, the following is established:
Section 1. Employers who employ wage earners under the Act on the Labour Market Supplementary Pension must state their CVR/SE number in the reporting and payment of contributions.
Annual Contribution
Section 2. The standard annual contribution amounts to 3,564 DKK (the A-rate), cf. Section 15, paragraph 1, of the Act on the Labour Market Supplementary Pension.
Paragraph 2. For certain public employees, the annual contribution, cf. Section 15, paragraph 2, of the Act on the Labour Market Supplementary Pension, amounts to:
- 1,166.40 DKK and is the basis for the calculation of the B-rate in Appendix 2.
- 2,397.60 DKK and is the basis for the calculation of the C-rate in Appendix 3.
- 2,052.00 DKK and is the basis for the calculation of the D-rate in Appendix 4.
- 2,786.40 DKK and is the basis for the calculation of the E-rate in Appendix 5.
- 3,175.20 DKK and is the basis for the calculation of the F-rate in Appendix 6.
Calculation of Contributions
Section 3. The employer calculates the ATP contribution based on the wage earner's total number of hours in the individual pay period. Section 4 specifies which hours the employer must include.
Paragraph 2. The employer calculates the ATP contribution using the A-rate. For certain publicly employed persons, the ATP contribution is calculated using the B-, C-, D-, E-, or F-rate, cf. Appendices 2-6. The rates are calculated based on an annual contribution, which is the ATP contribution that must be paid annually for a wage earner who is fully employed by the same employer. Full employment is understood as employment with the same employer for a number of hours that at least corresponds to the hour limits for full contribution, cf. Appendices 1-6.
Paragraph 3. In the individual pay period, no more than one full ATP contribution may be paid for the wage earner's employment with the same employer.
Paragraph 4. Annually, an employer is not obliged to pay more for the individual wage earner than what corresponds to an annual contribution for monthly paid employees calculated with the A-rate.
Paragraph 5. For casual workers, the contribution indicated in Appendices 1-6 is paid for each hour, regardless of the number of working hours. Casual workers are understood as persons with short, completed employment relationships with one or more employers within a single week, and who are typically paid from day to day.
Paragraph 6. For members who are not fully employed, either 2/3, 1/3, or no contribution is paid for employment with the same employer, depending on the extent of the employment, cf. Appendices 1-6.
Paragraph 7. If a wage earner's working hours cannot be determined, the number of hours for which ATP contribution must be paid, cf. paragraph 1, is calculated by dividing the income in the pay period with the same employer by an hourly wage for men and women respectively. The hourly wage amounts to 236.89 DKK for men and 213.93 DKK for women in 2024. The hourly wage is adjusted annually by a percentage corresponding to the increase in the average earnings per hour excluding supplementary allowances, as most recently published in the Danish Employers' Confederation's Wage Statistics, Structure Statistics. The Labour Market Supplementary Pension publishes annually no later than in December on virk.dk the hourly wages to be used in the following year.
Calculation of Hours in the Pay Period
Section 4. The employer must calculate the wage earner's total number of hours in the pay period. The calculation includes both working hours and hours during the employment relationship that are equated with working hours, even if no work output is performed, cf. paragraphs 2, 3, and 4.
Paragraph 2. The employer must include hours equated with working hours when the employer pays wages or provides other payment, including:
- Time off in lieu and free time to offset inconvenient working hours,
- Parental leave,
- Absence due to child's illness,
- Absence due to care days, holiday days, child-family days, and senior days,
- Absence due to leave,
- Recall for military service,
- School or course attendance,
- Readiness duty or similar,
- Periods where the wage earner receives readiness pay or waiting benefits according to the Act on Civil Servants or in accordance with the municipal civil service regulations or statutes, cf. Section 2, paragraph 1, letter b, of the Act on the Labour Market Supplementary Pension, notice periods where the wage earner has been dismissed, cf. Section 2, paragraph 1, letter c, of the Act on the Labour Market Supplementary Pension, regardless of whether the person is released from work, and
- Periods where the employer cannot or will not utilize the member's labor but is obliged to pay the wages.
Paragraph 3. The employer must include periods of illness and absence hours due to preventive pregnancy examinations, regardless of whether the employer pays wages or daily allowances.
Paragraph 4. When wages are paid monthly, and ATP contribution is calculated according to the rules for monthly paid employees, cf. Appendices 1-6, hours where the wage earner is on holiday with pay or holiday allowance are included. Hours with holiday allowance from a previous employer are not included.
Paragraph 5. The employer must not include holiday hours and Sundays/holidays when ATP contribution is calculated according to the rules for 14-day paid or weekly paid employees, cf. Appendices 1-6.
Allocation of Hours in Relation to Pay Periods
Section 5. The total number of hours, cf. Section 4, paragraph 1, is included in the pay periods in which they are earned.
Paragraph 2. Overtime hours that are not taken as time off in lieu, or which cannot be taken as time off in lieu, for example due to resignation, are included in the pay periods in which the overtime is worked.
Paragraph 3. In a pre-determined work roster, which includes pay periods with a different number of working hours, the hours are calculated in total for the entire roster period and then distributed equally between the pay periods included.
Paragraph 4. If the wage earner otherwise has a varying number of working hours, the hours in Section 4, paragraphs 2-4, are calculated as an average of the total number of hours in the last 4 weeks. If the total number of working hours has not been usual in these 4 weeks, the total number of hours within the last 13 weeks is used.
Membership of Foreign Wage Earners in the Labour Market Supplementary Pension
Section 6. Unless otherwise provided by the rules in Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems, the Nordic Convention on Social Security of 12 June 2012, or a convention on social security that Denmark has entered into with another country, foreign wage earners employed in this country or on Danish ships in domestic shipping are covered by the Labour Market Supplementary Pension. However, the relevant wage earners are not covered if their employment is short-term. Short-term employment is understood as employment of a maximum duration of 6 months, or if the employment is for educational purposes, a maximum duration of 18 months.
Paragraph 2. The Board of the Labour Market Supplementary Pension may in special cases exempt a wage earner from being covered by the Labour Market Supplementary Pension despite the employment, which is for educational purposes, cf. paragraph 1, exceeding 18 months in duration.
Section 7. Unless otherwise provided by the rules in Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems, the Nordic Convention on Social Security of 12 June 2012, or a convention on social security that Denmark has entered into with another country, foreign wage earners who are posted to another country for the Danish state, Danish companies and institutions, or who are employed on Danish ships in shipping other than domestic shipping, are covered by the Labour Market Supplementary Pension, insofar as they are covered by Danish legislation on social security upon posting or hiring.
Reporting
Section 8. The employer reports once a month to the income register the total ATP contribution that must be paid to the Labour Market Supplementary Pension for each individual wage earner. When reporting to the income register, the employer must state the same CVR/SE number as used for the payment of ATP contribution, cf. Section 1.
Paragraph 2. The obligation to report ATP contribution, cf. paragraph 1, applies to any employer who is obliged to report according to the Act on an Income Register, and who employs wage earners covered by the Act on the Labour Market Supplementary Pension.
Paragraph 3. Public employers who have employed wage earners covered by the B-, C-, D-, E-, or F-rate must inform the income register that the contribution is calculated according to the B-, C-, D-, E-, or F-rate, cf. Section 3, paragraph 1, no. 7, of the Act on an Income Register. If a wage earner has been covered by several different rates (A-, B-, C-, D-, E-, or F-rate, cf. Appendices 1-6), the contributions must be reported separately.
Paragraph 4. In connection with the termination of a business or change of ownership, ATP contribution is reported for the period until the termination or change of ownership according to the rules in paragraphs 1-3.
Section 9. An employer who is not obliged to report to the income register, cf. Section 8, paragraph 2, reports after the end of each quarter, respectively 10 April, 10 July, 10 October, and 17 January, the total ATP contribution that must be paid to the Labour Market Supplementary Pension for each individual wage earner. The reporting is done on virk.dk or to the Labour Market Supplementary Pension. The Labour Market Supplementary Pension may in special cases set a longer deadline for reporting.
Paragraph 2. The reporting must contain information about the following:
- The employer's name and address.
- The employer's CVR/SE number.
- Employment quarter and year.
- The wage earner's name and CPR number.
- Wage earners who are not covered by the Act on Labour Market Contribution.
- The total contribution, i.e., the sum of the wage earner's and the employer's shares of the contribution.
Section 10. The Labour Market Supplementary Pension may in control purposes impose on an employer to provide information on contributions using the reports referred to in Section 9 to the Labour Market Supplementary Pension for one or more calendar years or parts of a year. The employers covered by Section 8 are exempted from the obligation to report ATP contribution to SKAT via the income register to the extent that the Labour Market Supplementary Pension must make the report to this according to the rules set by the Minister of Taxation pursuant to the Act on an Income Register.
Collection and Payment
Section 11. The Labour Market Supplementary Pension collects ATP contributions based on the employer's reports, cf. Sections 8 and 9.
Paragraph 2. Contributions are collected according to the rules that apply to Samlet Betaling, which is the technical common collection solution that the Labour Market Supplementary Pension uses to collect a number of contributions administered by the Labour Market Supplementary Pension.
Right of Appeal
Section 12. Decisions may be appealed according to the rules on right of appeal in the Act on the Labour Market Supplementary Pension.
Entry into Force
Section 13. This Order enters into force on 1 January 2024.
Paragraph 2. The contribution rates in Section 2, paragraph 1, and Section 2, paragraph 2, no. 2-5, apply to reported ATP contributions for the first full pay period earned from 1 January 2024. Contributions are paid for the first time on 1 July 2024.
Paragraph 3. Order No. 1385 of 25 November 2015 on the Labour Market Supplementary Pension is repealed.
Paragraph 4. Contributions with due date for payment on 1 February 2024 are collected according to the rules in Order No. 1385 of 25 November 2015 on the Labour Market Supplementary Pension. The collection includes reported ATP contributions for pay periods ending before 1 January 2024, where the reporting is done until and including 14 February 2024.
The Ministry of Employment, 12 December 2023
Ane Halsboe-Jørgensen / Simon Gravers Jacobsen
Appendix 1
Contributions according to Section 2, paragraph 1, cf. Section 15, paragraph 1, of the Act on the Labour Market Supplementary Pension, amount to (rounded amounts):
ATP contribution (A-rate): annual rate 3,564.00 DKK
| Contribution Shares | Wage Earner's Share | Employer's Share | Total Contribution |
|---|---|---|---|
| Pay Period / Time Interval | Share (1/3) | Share (2/3) | |
| Monthly Paid: | |||
| (Hours per month) | |||
| At least 117 (full time) | 99 | 198 | 297 |
| At least 78 – under 117 (2/3 time) | 66 | 132 | 198 |
| At least 39 – under 78 (1/3 time) | 33 | 66 | 99 |
| Under 39 | 0.00 | ||
| 14-Day Paid: | |||
| (Hours in 14-day period) | |||
| At least 54 (full time) | 52.20 | 104.40 | 156.60 |
| At least 36 – under 54 (2/3 time) | 34.80 | 69.60 | 104.40 |
| At least 18 – under 36 (1/3 time) | 17.40 | 34.80 | 52.20 |
| Under 18 | 0.00 | ||
| Weekly Paid: | |||
| (Hours per week) | |||
| At least 27 (full time) | 26.10 | 52.20 | 78.30 |
| At least 18 – under 27 (2/3 time) | 17.40 | 34.80 | 52.20 |
| At least 9 – under 18 (1/3 time) | 8.70 | 17.40 | 26.10 |
| Under 9 | 0.00 | ||
| Casual Workers: | |||
| Per hour | 0.71 | 1.42 | 2.13 |
Note: The table shows the size of the ATP contribution distributed across pay periods for monthly paid, 14-day paid, and weekly paid employees. In addition, the ATP contribution is divided into four different time intervals that determine whether full, 2/3, 1/3, or no contribution must be paid for employment with the same employer.
Appendix 2
Contributions according to Section 2, paragraph 2, no. 1, cf. Section 15, paragraph 2, of the Act on the Labour Market Supplementary Pension, amount to (rounded amounts):
ATP contribution (B-rate) – annual rate 1,166.40 DKK
| Contribution Shares | Wage Earner's Share | Employer's Share | Total Contribution |
|---|---|---|---|
| Pay Period / Time Interval | Share (1/3) | Share (2/3) | |
| Monthly Paid: | |||
| (Hours per month) | |||
| At least 117 (full time) | 32.40 | 64.80 | 97.20 |
| At least 78 – under 117 (2/3 time) | 21.60 | 43.20 | 64.80 |
| At least 39 – under 78 (1/3 time) | 10.80 | 21.60 | 32.40 |
| Under 39 | 0.00 | ||
| 14-Day Paid: | |||
| (Hours in 14-day period) | |||
| At least 54 (full time) | 17.10 | 34.20 | 51.30 |
| At least 36 – under 54 (2/3 time) | 11.40 | 22.80 | 34.20 |
| At least 18 – under 36 (1/3 time) | 5.70 | 11.40 | 17.10 |
| Under 18 | 0.00 | ||
| Weekly Paid: | |||
| (Hours per week) | |||
| At least 27 (full time) | 8.55 | 17.10 | 25.65 |
| At least 18 – under 27 (2/3 time) | 5.70 | 11.40 | 17.10 |
| At least 9 – under 18 (1/3 time) | 2.85 | 5.70 | 8.55 |
| Under 9 | 0.00 | ||
| Casual Workers: | |||
| Per hour | 0.25 | 0.50 | 0.75 |
Note: The table shows the size of the ATP contribution distributed across pay periods for monthly paid, 14-day paid, and weekly paid employees. In addition, the ATP contribution is divided into four different time intervals that determine whether full, 2/3, 1/3, or no contribution must be paid for employment with the same employer.
Appendix 3
Contributions according to Section 2, paragraph 2, no. 2, cf. Section 15, paragraph 2, of the Act on the Labour Market Supplementary Pension, amount to (rounded amounts):
ATP contribution (C-rate) – annual rate 2,397.60 DKK
| Contribution Shares | Wage Earner's Share | Employer's Share | Total Contribution |
|---|---|---|---|
| Pay Period / Time Interval | Share (1/3) | Share (2/3) | |
| Monthly Paid: | |||
| (Hours per month) | |||
| At least 117 (full time) | 66.60 | 133.20 | 199.80 |
| At least 78 – under 117 (2/3 time) | 44.40 | 88.80 | 133.20 |
| At least 39 – under 78 (1/3 time) | 22.20 | 44.40 | 66.60 |
| Under 39 | 0.00 | ||
| 14-Day Paid: | |||
| (Hours in 14-day period) | |||
| At least 54 (full time) | 35.10 | 70.20 | 105.30 |
| At least 36 – under 54 (2/3 time) | 23.40 | 46.80 | 70.20 |
| At least 18 – under 36 (1/3 time) | 11.70 | 23.40 | 35.10 |
| Under 18 | 0.00 | ||
| Weekly Paid: | |||
| (Hours per week) | |||
| At least 27 (full time) | 17.55 | 35.10 | 52.65 |
| At least 18 – under 27 (2/3 time) | 11.70 | 23.40 | 35.10 |
| At least 9 – under 18 (1/3 time) | 5.85 | 11.70 | 17.55 |
| Under 9 | 0.00 | ||
| Casual Workers: | |||
| Per hour | 0.47 | 0.94 | 1.41 |
Note: The table shows the size of the ATP contribution distributed across pay periods for monthly paid, 14-day paid, and weekly paid employees. In addition, the ATP contribution is divided into four different time intervals that determine whether full, 2/3, 1/3, or no contribution must be paid for employment with the same employer.
Appendix 4
Contributions according to Section 2, paragraph 2, no. 3, cf. Section 15, paragraph 2, of the Act on the Labour Market Supplementary Pension, amount to (rounded amounts):
ATP contribution (D-rate) – annual rate 2,052.00 DKK
| Contribution Shares | Wage Earner's Share | Employer's Share | Total Contribution |
|---|---|---|---|
| Pay Period / Time Interval | Share (1/3) | Share (2/3) | |
| Monthly Paid: | |||
| (Hours per month) | |||
| At least 117 (full time) | 57.00 | 114.00 | 171.00 |
| At least 78 – under 117 (2/3 time) | 38.00 | 76.00 | 114.00 |
| At least 39 – under 78 (1/3 time) | 19.00 | 38.00 | 57.00 |
| Under 39 | 0.00 | ||
| 14-Day Paid: | |||
| (Hours in 14-day period) | |||
| At least 54 (full time) | 30.00 | 60.00 | 90.00 |
| At least 36 – under 54 (2/3 time) | 20.00 | 40.00 | 60.00 |
| At least 18 – under 36 (1/3 time) | 10.00 | 20.00 | 30.00 |
| Under 18 | 0.00 | ||
| Weekly Paid: | |||
| (Hours per week) | |||
| At least 27 (full time) | 15.00 | 30.00 | 45.00 |
| At least 18 – under 27 (2/3 time) | 10.00 | 20.00 | 30.00 |
| At least 9 – under 18 (1/3 time) | 5.00 | 10.00 | 15.00 |
| Under 9 | 0.00 | ||
| Casual Workers: | |||
| Per hour | 0.41 | 0.82 | 1.23 |
Note: The table shows the size of the ATP contribution distributed across pay periods for monthly paid, 14-day paid, and weekly paid employees. In addition, the ATP contribution is divided into four different time intervals that determine whether full, 2/3, 1/3, or no contribution must be paid for employment with the same employer.
Appendix 5
Contributions according to Section 2, paragraph 2, no. 4, cf. Section 15, paragraph 2, of the Act on the Labour Market Supplementary Pension, amount to (rounded amounts):
ATP contribution (E-rate) – annual rate 2,786.40 DKK
| Contribution Shares | Wage Earner's Share | Employer's Share | Total Contribution |
|---|---|---|---|
| Pay Period / Time Interval | Share (1/3) | Share (2/3) | |
| Monthly Paid: | |||
| (Hours per month) | |||
| At least 117 (full time) | 77.40 | 154.80 | 232.20 |
| At least 78 – under 117 (2/3 time) | 51.60 | 103.20 | 154.80 |
| At least 39 – under 78 (1/3 time) | 25.80 | 51.60 | 77.40 |
| Under 39 | 0.00 | ||
| 14-Day Paid: | |||
| (Hours in 14-day period) | |||
| At least 54 (full time) | 40.80 | 81.60 | 122.40 |
| At least 36 – under 54 (2/3 time) | 27.20 | 54.40 | 81.60 |
| At least 18 – under 36 (1/3 time) | 13.60 | 27.20 | 40.80 |
| Under 18 | 0.00 | ||
| Weekly Paid: | |||
| (Hours per week) | |||
| At least 27 (full time) | 20.40 | 40.80 | 61.20 |
| At least 18 – under 27 (2/3 time) | 13.60 | 27.20 | 40.80 |
| At least 9 – under 18 (1/3 time) | 6.80 | 13.60 | 20.40 |
| Under 9 | 0.00 | ||
| Casual Workers: | |||
| Per hour | 0.55 | 1.10 | 1.65 |
Note: The table shows the size of the ATP contribution distributed across pay periods for monthly paid, 14-day paid, and weekly paid employees. In addition, the ATP contribution is divided into four different time intervals that determine whether full, 2/3, 1/3, or no contribution must be paid for employment with the same employer.
Appendix 6
Contributions according to Section 2, paragraph 2, no. 5, cf. Section 15, paragraph 2, of the Act on the Labour Market Supplementary Pension, amount to (rounded amounts):
ATP contribution (F-rate) – annual rate 3,175.20 DKK
| Contribution Shares | Wage Earner's Share | Employer's Share | Total Contribution |
|---|---|---|---|
| Pay Period / Time Interval | Share (1/3) | Share (2/3) | |
| Monthly Paid: | |||
| (Hours per month) | |||
| At least 117 (full time) | 88.20 | 176.40 | 264.60 |
| At least 78 – under 117 (2/3 time) | 58.80 | 117.60 | 176.40 |
| At least 39 – under 78 (1/3 time) | 29.40 | 58.80 | 88.20 |
| Under 39 | 0.00 | ||
| 14-Day Paid: | |||
| (Hours in 14-day period) | |||
| At least 54 (full time) | 46.50 | 93.00 | 139.50 |
| At least 36 – under 54 (2/3 time) | 31.00 | 62.00 | 93.00 |
| At least 18 – under 36 (1/3 time) | 15.50 | 31.00 | 46.50 |
| Under 18 | 0.00 | ||
| Weekly Paid: | |||
| (Hours per week) | |||
| At least 27 (full time) | 23.25 | 46.50 | 69.75 |
| At least 18 – under 27 (2/3 time) | 15.50 | 31.00 | 46.50 |
| At least 9 – under 18 (1/3 time) | 7.75 | 15.50 | 23.25 |
| Under 9 | 0.00 | ||
| Casual Workers: | |||
| Per hour |
Note: The table shows the size of the ATP contribution distributed across pay periods for monthly paid, 14-day paid, and weekly paid employees. In addition, the ATP contribution is divided into four different time intervals that determine whether full, 2/3, 1/3, or no contribution must be paid for employment with the same employer.