Labour market pension in Denmark
Not all employees in Denmark are covered by a labour market pension. Find out what to check in your employment contract, how contributions work and what happens to your pension if you stop working in Denmark or retire in Sweden.
Check your employment contract
Not all employees in Denmark are covered by a labour market pension, arbejdsmarkedspension. It is common for the employment contract to state that the employer pays a fixed contribution into a pension scheme. Check your contract to find out which pension agreement applies to you. If pension contributions are not included in your agreement, you cannot require your employer to contribute to your pension savings.
Both you and your employer will often contribute to the arbejdsmarkedspension through a fixed percentage of your salary. Your employment agreement determines which pension provider receives the contributions.
There may also be conditions for joining the pension scheme, such as your age, health or how long you have been employed. These conditions should be stated in your agreement.
You and your employer both contribute
An arbejdsmarkedspension may include pension savings, insurance and group life insurance. The share paid by your employer varies. It is common for the employer to pay 2/3 of the total pension contribution and for you to pay 1/3. You can also choose to contribute more yourself.
Receiving your arbejdsmarkedspension when you live in Sweden
When you reach retirement age, you need to contact your Danish pension fund yourself, as Danish pension funds are not automatically notified when you reach retirement age.
It is a good idea to keep records of your previous employers and employment periods in case there are any questions about your pension entitlement later on.
If you stop working in Denmark
If you stop working in Denmark and no longer receive pension contributions from a Danish employer, it is useful to know that:
- you cannot transfer savings from a Danish arbejdsmarkedspension to an occupational pension scheme in Sweden
- some arbejdsmarkedspension schemes can be paid out early for a fee
- if you change jobs in Denmark, your new employer may use a different Danish pension provider
If you have pension savings with several providers, check whether it makes sense to consolidate them to avoid paying administration fees to several providers.
Check your Danish pension schemes at pensionsinfo.dk
More information
For more information about your arbejdsmarkedspension, contact your trade union, pension provider or pension fund.
You can also contact the pension specialists at Øresunddirekt for guidance on Danish pensions if you live in Sweden and work or have worked in Denmark.
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