Order on Payment and Reporting of ATP Contributions for Recipients of Flex Income

Order on Payment and Reporting of ATP Contributions for Recipients of Flex Income

Pursuant to Section 2c of the Act on Labour Market Supplementary Pension, cf. Consolidation Act No. 1110 of 10 October 2014, and Section 14, paragraph 1, of the Act on Flex Income, cf. Consolidation Act No. 222 of 12 February 2021, and following a proposal from the Board of the Labour Market Supplementary Pension, it is hereby ordered under authorization:

The ATP Contribution

Section 1. For recipients of flex income under the Act on Flex Income, contributions to the Labour Market Supplementary Pension may be paid upon the recipient's request.

Paragraph 2. Contributions are paid for each hour for which flex income is disbursed. Based on the annual contribution set according to Section 15, paragraph 1, of the Act on Labour Market Supplementary Pension, the Board of the Labour Market Supplementary Pension sets an hourly contribution. The contribution amounts to 1.86 DKK per hour.

Conditions for Payment of ATP Contributions, etc.

Section 2. In connection with an application for flex income, the applicant provides notice of whether they wish to pay contributions to the Labour Market Supplementary Pension. Payment of contributions to the Labour Market Supplementary Pension takes effect from the first month for which flex income is disbursed.

Paragraph 2. Recipients of flex income who wish to pay contributions to the Labour Market Supplementary Pension must provide written notice to Udbetaling Danmark. Payment of contributions to the Labour Market Supplementary Pension takes effect from the 1st of the month following Udbetaling Danmark's receipt of the notice.

Paragraph 3. Recipients of flex income who wish to cease paying contributions to the Labour Market Supplementary Pension must provide written notice to Udbetaling Danmark. Cessation of payment takes effect from the 1st of the month following the expiration of 6 months from Udbetaling Danmark's receipt of the notice.

Paragraph 4. Contributions to the Labour Market Supplementary Pension may be paid for the last time in the month in which the recipient of flex income reaches the retirement age, cf. the Act on Social Pension.

Paragraph 5. Upon the death of the flex income recipient, payment of contributions to the Labour Market Supplementary Pension ceases from the 1st of the following month.

Section 3. The contribution under Section 1, paragraph 2, is paid by the person for whom the contribution is paid. The contribution for a month is rounded down to the nearest whole DKK amount.

Paragraph 2. Udbetaling Danmark withholds the contribution when disbursing the flex income.

Udbetaling Danmark's Payment to the Labour Market Supplementary Pension

Section 4. The ATP contribution is collected quarterly by the Labour Market Supplementary Pension. The collection is sent by the Labour Market Supplementary Pension to Udbetaling Danmark via digital mail. When paying the contribution to the Labour Market Supplementary Pension, the payment channel designated by the Labour Market Supplementary Pension must be used. This may be the payment channel indicated in the collection, Informationservice, Betalingsservice, or a corresponding payment solution. When paying via Betalingsservice, the amount is transferred automatically to the Labour Market Supplementary Pension. The payment must be made to the special SE-number used for the disbursement of flex income.

Paragraph 2. The contribution falls due for payment on 1 July (for the 1st quarter), 1 October (for the 2nd quarter), 1 January (for the 3rd quarter), and 1 April (for the 4th quarter). Udbetaling Danmark pays the contribution to the Labour Market Supplementary Pension.

Paragraph 3. If the contributions fall due for payment on a bank holiday, the due date is considered to be the next banking day.

Paragraph 4. If Udbetaling Danmark does not pay the contribution in time, Udbetaling Danmark must pay interest at the interest rate currently set in accordance with Section 5 of the Interest Act. The interest is collected by the Labour Market Supplementary Pension.

Udbetaling Danmark's Reporting to the Labour Market Supplementary Pension

Section 5. Udbetaling Danmark reports once a month the ATP contribution that must be paid to the Labour Market Supplementary Pension for each individual flex income recipient. The reporting is made to the income register according to Section 3, paragraph 4, number 7, of the Act on an Income Register and under the separate SE-number mentioned in Section 4, paragraph 1.

Repayment of ATP Contributions

Section 6. If a benefit recipient must repay flex income received incorrectly, the ATP contributions paid from this benefit must be transferred from the Labour Market Supplementary Pension to Udbetaling Danmark.

Entry into Force, etc.

Section 7. This Order enters into force on 1 January 2024.

Paragraph 2. Order No. 1345 of 30 November 2015 on payment and reporting of ATP contributions for recipients of flex income is repealed.

The Board of the Labour Market and Recruitment, 4 December 2023 Jens Erik Zebis / Kirsten Brix Pedersen

4 December 2023. No. 1453.
Ministry of Employment,
Board of the Labour Market and Recruitment, file no. 23/08378 BE009707

Lovtidende A
2023 Published on 6 December 2023