Order on Payment of ATP Contributions When Paying Sickness and Parental Benefit

Order on Payment of ATP Contributions When Paying Sickness and Parental Benefit

Pursuant to Section 2c and Section 17, subsection 8, of the Act on the Labour Market Supplementary Pension, cf. Consolidation Act No. 1110 of 10 October 2014, as amended by Act No. 1538 of 12 December 2023, Section 66, subsection 14, of the Act on Sickness Benefit, cf. Consolidation Act No. 1179 of 21 September 2023, as amended by Act No. 1538 of 12 December 2023, and Section 45, subsection 14, of the Act on the Right to Parental Leave and Parental Benefit, cf. Consolidation Act No. 1180 of 21 September 2023, as amended by Act No. 1538 of 12 December 2023, and upon the recommendation of the Board of the Labour Market Supplementary Pension, it is hereby ordered under authorization:

The Total ATP Contribution

Section 1. Contributions shall be paid to the Labour Market Supplementary Pension (Arbejdsmarkedets Tillægspension) for wage earners who receive benefit payments from an employer, the municipality, or Udbetaling Danmark under the Act on Sickness Benefit or under the Parental Leave Act.

Subsection 2. When sickness or parental benefit is paid by the employer, the contribution shall be the contribution fixed in Section 15, subsections 1 and 2, of the Act on the Labour Market Supplementary Pension, depending on the contribution applicable in the current employment relationship. For the purpose of calculating the number of hours in the pay period, the employer shall equate the number of hours for which sickness or parental benefit is paid with periods of employment.

Subsection 3. When sickness benefit is paid by the municipality or parental benefit is paid by Udbetaling Danmark, the contribution shall be double the contribution fixed in Section 15, subsection 1, of the Act on the Labour Market Supplementary Pension. Contributions shall be paid for each hour for which sickness or parental benefit is paid. The basic contribution per hour is fixed by the Board of the Labour Market Supplementary Pension and amounts to DKK 2.13. The double hourly contribution amounts to DKK 4.26.

Subsection 4. When sickness benefit is paid by the municipality or parental benefit is paid by Udbetaling Danmark as a supplement to wages, the number of hours for which ATP contribution is to be paid is calculated by dividing the paid amount by the hourly rate according to Section 50, subsection 1, of the Act on Sickness Benefit or Section 35, subsection 1, of the Parental Leave Act, respectively.

Subsection 5. When calculating ATP contribution on sickness benefit from the municipality or parental benefit from Udbetaling Danmark, cf. subsections 1, 3, and 4, with the exception of benefits for shift work, cf. Section 47, subsection 2, of the Act on Sickness Benefit or Section 33, subsection 2, of the Parental Leave Act, the ATP contribution may, however, be calculated on the basis of a total of 37 hours per week.

Financing of the ATP Contribution

Section 2. The benefit recipient shall bear one-third of the ATP contribution according to Section 1.

Subsection 2. The employer, the municipality, or Udbetaling Danmark shall withhold the contribution when paying sickness or parental benefit.

Subsection 3. The contribution calculated by the municipality or Udbetaling Danmark for the benefit recipient, cf. subsection 1, shall be rounded to the nearest whole krone amount. The municipality's or Udbetaling Danmark's share of the total ATP contribution shall be double the rounded amount.

Section 3. When sickness or parental benefit is paid by the employer, the employer shall bear two-thirds of the contribution according to Section 1, subsection 2.

Section 4. When sickness benefit is paid by the municipality or parental benefit is paid by Udbetaling Danmark, the municipality or Udbetaling Danmark shall bear two-thirds of the contribution according to Section 1, subsection 3. The municipality's or Udbetaling Danmark's expenses shall be covered by a financing contribution paid by employers and calculated according to the rules in the Order on the Calculation of Financing Contributions.

Subsection 2. The Labour Market Supplementary Pension shall handle the collection and recovery of financing contributions from employers according to the rules in the Order on Joint Collection of Certain Employer Contributions.

Employer's Payment and Reporting to ATP

Section 5. The employer shall pay the ATP contribution according to Section 1, subsection 2, for the period during which the employer pays sickness or parental benefit, together with its other ATP contributions to the Labour Market Supplementary Pension after the end of each quarter in accordance with the rules in the Order on the Labour Market Supplementary Pension.

Section 6. The employer shall report once a month the total ATP contribution to be paid to the Labour Market Supplementary Pension for each individual wage earner, cf. Section 5, in accordance with the rules in the Order on the Labour Market Supplementary Pension.

Official Gazette A
2023 Published on 19 December 2023
12 December 2023. No. 1664.
Ministry of Employment,
Agency of Labour Market and Recruitment, ref. no. 23/08378 BE009706

Municipality's or Udbetaling Danmark's Payment and Reporting to ATP

Section 7. The total ATP contribution according to Section 1, subsection 3, shall become due for payment on 1 July (for the first quarter), 1 October (for the second quarter), 1 January (for the third quarter), and 1 April (for the fourth quarter).

Subsection 2. The ATP contribution is collected quarterly by the Labour Market Supplementary Pension. The collection is sent by the Labour Market Supplementary Pension to the municipality or Udbetaling Danmark 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 payment must be made to the special SE-numbers, which are respectively used for the payment of sickness benefit or parental benefit.

Subsection 3. If the contributions become due for payment on a bank holiday, the due date is deemed 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 shall pay interest from the due date at the interest rate fixed at any time pursuant to Section 5 of the Interest Act.

Section 8. The municipality or Udbetaling Danmark shall report once a month the total ATP contribution to be paid to the Labour Market Supplementary Pension for each individual benefit recipient, cf. Section 7, subsection 1. The report is made to the Income Register pursuant to Section 3, subsection 1, no. 7, of the Act on an Income Register and under the SE-numbers mentioned in Section 7, subsection 2.

Repayment of ATP Contribution

Section 9. If a wage earner is required to repay sickness or parental benefit received erroneously, the ATP contributions paid on these benefits shall be repaid by the Labour Market Supplementary Pension to the employer, the municipality, or Udbetaling Danmark.

Entry into Force etc.

Section 10. This Order enters into force on 1 January 2024.

Subsection 2. Order No. 1348 of 30 November 2015 on the payment of ATP contributions when paying benefit under the Act on Sickness Benefit and under the Parental Leave Act is repealed.

The Agency of Labour Market and Recruitment, 12 December 2023 Jens Erik Zebis / Kirsten Brix Pedersen 12 December 2023. 2 No. 1664.