Fewer bankruptcies have resulted in a 26 per cent decrease in payments from the employees' guarantee fund (LG), reflecting the Danish economy's "good period," according to ATP.

In 2024, LG paid out wage claims in connection with 1,294 bankruptcies, a 19 per cent decrease from 1,598 in 2023.

While DKK 812m was paid out in 2023, that figure fell to DKK 602m in 2024.

In 2024, 10,462 employees received payments from LG, 1,351 fewer than in 2023, a 10 per cent decrease.

ATP group director of pension and labour market Anne Kristine Axelsson, who administers the LG scheme, said the Danish labour market is in "very good shape."

"This is also reflected in fewer bankruptcies, where fewer employees are in a pinch. We are experiencing the lowest level in the number of payments we have seen in 15 years if we disregard 2021, where COVID played such a significant role," she added.

However, ATP noted that the breakdown of the number of approved employer cases at the industry level did not show major changes in the distribution.

Indeed, the trade and transport industry had the highest share, with 39 per cent of the total cases in LG.

The construction industry had the second most cases, with a 24 per cent share.

The average payout per employee increased to DKK 43,390 in 2024 from DKK 39,000 in
2023, corresponding to an 11 per cent increase.

"Regardless of the industry, it is important that Danish employees can feel secure in getting what they are legally entitled to for their work," Axelsson continued.

"This is also reflected in the payments from the Employees' Guarantee Fund, which is ready to provide wages and holiday pay to employees in companies in the event that bankruptcy strikes," she concluded.

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