Factsheet for case DK-2020-10/1795 – measures in Denmark
|Country||Denmark , applies nationwide|
|Time period||Temporary, 01 March 2020 – 31 December 2021|
|Type||Legislations or other statutory regulations|
Ensuring business continuity and support for essential services
– Remuneration and rewards for workers in essential services
|Author||Maria Hansen (FAOS, University of Copenhagen)|
|Case created||23 March 2021 (updated 25 March 2021)|
On 24 February 2021 the Danish Government concluded an agreement, which ensures that additional corona-related work taken on by retirees and/or their spouse/live-in partner is not set off against their current pension. Usually the pension is reduced if any additional income from the pensioner or their spouse/live-in partner surpasses a certain thresholds.
The agreement covers all types of additional time and overtime attributable to COVID-19. The scheme is not limited to industries, occupations or functions, and includes both public and private employees. In the case of additional and overtime work, it covers all work that goes beyond what is agreed under the employment contract and also applies to bonuses and special allowances that can be directly linked to the additional effort. Similarly, part-time workers who have additional work under COVID-19 will be covered.
In order to avoid the set-off, retirees have to report the additional work to the Danish Public Benefit Administration (Udbetaling Denmark) with the following documentation:
It is expected, with considerable uncertainty, that the agreement will cost the State around DKK 60 million (€8 million) annually in the next two years, including implementation and operating costs. The agreement is financed by the funds allocated to the management of COVID-19.
The agreement is in effect from March 2020 to the end of 2021.
The measure is not implemented yet, and retirees will first be able to report their additional corona-related work from 1 March 2021.
Other groups of workers
||Does not apply to businesses||
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
The Confederation of Danish Employers (Dansk Arbejdsgiverforening) has previously argued for an off set of all income in the state pension, as it will attract more seniors to the labour market, which will be helpful after the pandemic. The said measure is only a fraction of the demand, as it applies only to additional work that is directly linked to corona. However, the measure is a step in the discussed direction.
Eurofound (2021), Offset of additional corona-related income against pension removed , case DK-2020-10/1795 (measures in Denmark), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.