Two of Denmark’s largest trade unions, the Danish Trade Union Confederation (FH) and the Confederation of Danish Employers (DA), have concluded collective agreement negotiations that will see private sector employers of its members paying a larger part of pension contributions.

Following FH/DA members’ approval of the changes, the salary and employment frameworks for the next two years have been determined for almost 600,000 full-time employees.

Employers for these members will pay a larger part of contributions and affected employees will also receive higher contributions to the discretionary account and ATP.

The collective agreement means that employers will pay 10 per cent of pension contributions and employees will pay 2 per cent, compared to the previous ratio of employers paying 8 per cent and workers paying 4 per cent.

These changes will take effect from 1 June 2023.

“It is of great importance both for the pension savers and for the Danish economy that the social partners have also this time focused on the importance of a stable pension system,” commented Forsikring & Pension deputy director, Karina Ransby.

“And a great many wage earners will in future notice in the household budget that the employers pay a larger part of the pension contribution, so they themselves have to pay less.

“The larger the pension the individual Dane has, the better the possibilities for an active senior life.

“But it also benefits the public finances that we save more ourselves and become less dependent on public services, so that everyone benefits from strengthened pension savings.”

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