Order on Payment of ATP Contributions for Recipients of Cash Benefits and Other Benefits

Order on Payment of ATP Contributions for Recipients of Cash Benefits and Other Benefits

Pursuant to Section 2c of the Act on the Labour Market Supplementary Pension (ATP), cf. Consolidation Act No. 1142 of 1 November 2024, Section 80, subsection 2, of the Act on Active Social Policy, cf. Consolidation Act No. 808 of 25 June 2024, as amended by Act No. 1655 of 30 December 2024, and Section 16a, subsection 7, of the Act on Partial Pension, cf. Consolidation Act No. 1120 of 17 September 2015, and upon the recommendation of the Board of the Labour Market Supplementary Pension, the following is prescribed:

Chapter 1
Mandatory Payment of ATP Contributions for Recipients of Cash Benefits, Resource Programme Benefits, Revalidation Benefits, and Unemployment Benefits

The Total ATP Contribution
Section 1. Contributions shall be paid to the Labour Market Supplementary Pension for persons who have reached the age of 16 and who receive benefits in accordance with Section 16, subsection 1, no. 2, Section 68, Section 69j, Section 71, subsection 1, and Section 74a, subsections 2 and 3, of the Act on Active Social Policy, subject to Section 2.

Subsection 2. The contribution prescribed in Section 15, subsection 1, of the Act on the Labour Market Supplementary Pension shall be paid for each month in which one of the benefits mentioned in subsection 1 is paid out. If the benefit is paid out for less than a month, the ATP contribution shall be calculated proportionally.

Conditions for Payment of ATP Contributions
Section 2. In the case of payment of cash benefits under Section 16, subsection 1, no. 2, of the Act on Active Social Policy, a condition for the payment of ATP contributions is that the person concerned has received cash benefits for a continuous period of 12 months. No contributions shall be paid for this 12-month period.

Subsection 2. If the payment of cash benefits ceases, the accumulation of the 12-month period is interrupted. If payment is resumed later without a new social event occurring, the accumulation of the 12-month period continues.

Subsection 3. For persons receiving assistance under Section 16, subsection 1, no. 2, a condition for the payment of ATP contributions is that the assistance has not been reduced in accordance with Sections 10f, 10h, and 10j and Section 26, subsection 2, and that no deductions have been made from the assistance in accordance with the rules in Sections 30-33, 36-40a, 42, and 43.

Subsection 4. For persons receiving benefits under Sections 68, 69j, 71, subsection 1, and 74a, subsections 2 and 3, of the Act on Active Social Policy, ATP contributions shall only be paid when the monthly benefit forming the basis for the calculation of the ATP contribution amounts to at least 16,972 DKK (January 2025) for a person with a duty to support children. For others, the amount must be at least 12,770 DKK (January 2025). The amount limits are reduced proportionally when benefits are paid out for less than a month. The amounts are adjusted once a year on 1 January, cf. Section 109, subsections 2 and 4, of the Act on Active Social Policy.

Subsection 5. The benefit forming the basis for the calculation of the ATP contribution under subsection 4 is the benefit calculated after deductions have been made in accordance with the rules in Sections 73f, 73g, and 68a, Section 69j, subsections 5 and 9, and Section 74d, subsections 2 and 3.

Subsection 6. No ATP contribution shall be paid if the benefit is given with a requirement for repayment under Section 93 of the Act on Active Social Policy.

The ATP Member's Share of the ATP Contribution
Section 3. The recipient of the benefits covered by this chapter pays 1/3 of the ATP contribution under Section 1. The contribution is rounded to the nearest whole krone amount.

Subsection 2. The municipality withholds the contribution share in subsection 1 when paying out the benefit that forms the basis for the calculation of the ATP contribution.

The Municipality's Share of the ATP Contribution
Section 4. The municipality pays 2/3 of the ATP contribution under Section 1. The contribution is rounded to the nearest whole krone amount. The State refunds 100 percent of the municipality's expenses for ATP contributions.

Chapter 2
Voluntary Payment of ATP Contributions for Recipients of Partial Pension

The Total ATP Contribution
Section 5. For persons receiving partial pension under the Act on Partial Pension, contributions may be paid to the Labour Market Supplementary Pension upon the recipient's request, subject to subsection 2.

Subsection 2. No contributions may be paid to the Labour Market Supplementary Pension if the partial pension amounts to less than 1,000 DKK per month.

Subsection 3. For recipients of partial pension, contributions are paid for each hour for which partial pension is received. Based on the annual contribution prescribed in Section 15, subsection 1, of the Act on the 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 Voluntary Payment of ATP Contributions
Section 6. In connection with an application for partial pension, the applicant notifies whether they wish to pay contributions to the Labour Market Supplementary Pension, cf. Section 5, subsection 1. Payment of contributions to the Labour Market Supplementary Pension takes effect from the 1st of the month following the decision to grant the pension.

Subsection 2. Recipients of partial pension who wish to pay contributions to the Labour Market Supplementary Pension, cf. Section 5, subsection 1, notify Udbetaling Danmark of this. Payment of contributions to the Labour Market Supplementary Pension takes effect from the 1st of the month following the expiration of one month from the date of notification.

Subsection 3. Recipients of partial pension may cease paying contributions to the Labour Market Supplementary Pension by notifying Udbetaling Danmark of this. Cessation of payments to the Labour Market Supplementary Pension takes effect from the 1st of the month following the expiration of 6 months from the date of notification.

Subsection 4. Payment of contributions to the Labour Market Supplementary Pension ceases upon the death of the pensioner from the 1st of the following month.

The ATP Member's Share of the ATP Contribution
Section 7. The recipient of partial pension pays 1/2 of the ATP contribution under Section 5. The contribution for a month is rounded down to the nearest whole krone amount.

Subsection 2. Udbetaling Danmark withholds the contribution share in subsection 1 when paying out the benefit that forms the basis for the calculation of the ATP contribution.

Udbetaling Danmark's Share of the ATP Contribution
Section 8. Udbetaling Danmark pays 1/2 of the ATP contribution under Section 5. The contribution for a month is rounded down to the nearest whole krone amount. The State refunds 100 percent of Udbetaling Danmark's expenses for ATP contributions.

Chapter 3
General Provisions

Payment of Contributions to ATP by the Municipality and Udbetaling Danmark
Section 9. The total ATP contribution for the individual benefits, cf. Section 1, is collected quarterly by the Labour Market Supplementary Pension. The collection is sent by the Labour Market Supplementary Pension to the municipality via digital mail. The ATP contribution for partial pension, cf. Section 5, is collected quarterly by the Labour Market Supplementary Pension via digital mail. When paying the contribution to the Labour Market Supplementary Pension, the municipality or Udbetaling Danmark must use the payment channel indicated by the Labour Market Supplementary Pension. This may be the payment channel specified in the collection notice, Information Service, Betalingsservice, or a corresponding payment solution. When paying via Betalingsservice, the amount is transferred automatically to the Labour Market Supplementary Pension. The collection notice is sent by the Labour Market Supplementary Pension to Udbetaling Danmark. The payment must be made under the special SE-numbers used for the payment of the benefits. Payments for benefits under Section 16, subsection 1, no. 2, Section 68, Section 69j, Section 71, subsection 1, and Section 74a, subsections 2 and 3, of the Act on Active Social Policy must be made to at least one SE-number. Payments of contributions for partial pension must be made to a separate SE-number.

Subsection 2. The contributions under Sections 1 and 5 fall 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). The municipality pays the total ATP contribution for the benefits mentioned in Section 1 to the Labour Market Supplementary Pension. Udbetaling Danmark pays the ATP contribution for partial pension, cf. Section 5, to the Labour Market Supplementary Pension.

Subsection 3. If the contributions fall due for payment on a bank-closed day, the due date is considered to be the next following banking day.

Subsection 4. If the municipality or Udbetaling Danmark does not pay the contribution on time, the paying authority must pay interest from the due date at the interest rate set from time to time in accordance with Section 5 of the Interest Act. The interest is collected by the Labour Market Supplementary Pension.

Reporting to ATP by the Municipality and Udbetaling Danmark
Section 10. The municipality and Udbetaling Danmark report once a month the total ATP contribution that must be paid to the Labour Market Supplementary Pension for each individual benefit recipient. The report is made to the income register under Section 3, subsection 1, no. 7, of the Act on an Income Register and under the special SE-numbers mentioned in Section 9, subsection 1.

Repayment of ATP Contributions
Section 11. If a person must repay a benefit mentioned in this order, the ATP contributions paid for this benefit shall be transferred from the Labour Market Supplementary Pension to the municipality or Udbetaling Danmark.

Chapter 4
Entry into Force etc.
Section 12. This order enters into force on 1 July 2025.

Subsection 2. Order No. 1438 of 4 December 2023 on the payment of ATP contributions for recipients of cash benefits and other benefits is repealed.

The Agency of Labour Market and Recruitment, 18 June 2025 Jens Erik Zebis / Tina Holgaard Madsen