Pension
In Denmark, people are entitled to retirement income through 3 different pension schemes: a public/state pension (statutory pension), a pension created through employment (labor market pensions), and an individual pension.
To receive the full pension amount, a person must have lived in Denmark for at least 40 years. A person who has lived in Denmark for fewer than 40 years between the ages of 15 and retirement age can receive a partial pension.
The state pension consists of a basic pension and a supplemental pension. If a person earns more than a certain income, they can become ineligible to receive part or all of their basic pension and pension supplement.
Dependents/Survivors Benefits
An employer is required to pay benefits to a surviving spouse and children in case of an employee's death:
- 1 month's salary if the employee has worked for 1 year
- 2 months' salary if the employee has worked for 2 years
- 3 months' salary if the employee has worked for more than 3 years
The Labor Market Business Insurance handles workers' compensation claims. There are 3 possible benefits for survivors who lost someone to a workplace accident or occupational disease: a transitional allowance, compensation for surviving spouse, partner, or children, and special compensation for surviving dependents.
In 2024, the compensation rates are:
- Maximum compensation for surviving dependent, spouse: DKK 191,628
- Compensation for surviving dependent, child, 10% maximum: DKK 38,328
- Compensation for surviving dependent, child, 15% maximum: DKK 57,492
- Compensation for surviving dependent, child, 20% maximum: DKK 76,656
Invalidity Benefits
Denmark's Act on Social Services provides disability assistance for people with permanent physical and mental impairments. The Government of Denmark pays entirely for disability pensions without any contributions from the employees or the employers. Municipalities are responsible for supporting individuals, and district councils decide on the type and amount of assistance.
The application for a pension is to be submitted to the municipal council. To be approved for disability, individuals have to show that their ability to work is substantially and permanently reduced to such a degree that work of any kind is impossible. Applicants must go through a rehabilitation program first to see if their ability to work can improve. A disability application will be denied if the ability to work improves with treatment and activity unless the applicant is within 5 years of retirement age. Disability payments are subject to income tests.
Permanent disability pension payments for work-related injuries are up to DKK 306,600 annually as of 2024. Eligible individuals may be subject to different requirements and amounts. Rates are adjusted annually on January 1 to add 2% to the adjustment percentage for the financial year in consideration of taxing, salary adjustments, interest rates, and mortality.
Persons with permanent disabilities also can apply for other assistance, including supplemental income for additional expenses.