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Generic Tax Name Social security contribution - Early retirement contributions
Tax name in the national language Efterlønsbidrag
Tax name in English Early retirement contributions
Member State DK-Denmark
Tax in force since 1998/12/23
If abolished, date on which the tax ceases to apply
Business version date 2011/01/01
Version date 2011/08/19
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

Statutory Notice No 574 of 27th May 2010.

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



Geographical Scope
The base or rate of social security contributions paid by Employees on the income of employees and of blue collar workers Rates are identical
Bases are identical


Domestic-source income of non-residents is Subject to SSCer
Not Subject to SSCer



Members of unemployment funds with early retirement schemes pay the contribution. An unemployment fund is a private association and one of their tasks is to manage their members early retirement schemes.

Tax object and basis of assessment
Employees pay social security contributions for


Early retirement scheme

Base for all contributions listed here above is the same Yes No

As general rule, the income subject to Social Security Contributions of Employees includes


Income considered Domestic income
Worldwide income

Benefits in kind

The following benefits in kind are usually (partially or fully) subject to social security contributions paid by Employees



Members of unemployment funds can voluntarily pay early retirement contributions along with their subscription. The contribution is a fixed amount for all unemployment funds.

If a member of an unemployment fund pay early retirement contributions for a certain period of time and meet certain other specifications then the member is entitled to early retirement payments. Which specifications one has to fulfil depends on when the individual is born.

Deductions, Allowances, Credits, Exemptions
Capped contributions No cap
Cap in monetary units:
Cap in % of the tax base:


The reduction is
No reduction
A lump-sum amount
In percentage of base:
Based on salary

The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents

The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents

Social Security Contributions paid by Employees are tax deductible Yes No


Deductable in taxable income.

Rate(s) Structure
The following rates apply to Social Security Contributions paid by Employees

Health care


Child care

Work-related illnesses and/or accidents

Education leave

Maternity leave



Special surcharges

There are special surcharges in the form of:


In 2011 the early retirement contribution for a full-time insured is set to DKK 5,364, and for a part-time insured the contribution is DKK 3,576.

Tax due date

The different unemployment funds decide when the early retirement contribution is due.

Tax collector

The contribution is collected by the unemployment fund.

Special features

The early retirement contribution is voluntary, but will start automatically when the member turns 30, unless the member has informed the fund otherwise in writing.

Economic function


Environmental taxes

Tax revenue
ESA95 code d61121c

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2009 5,690.80 DKK 0.33
2008 6,163.99 DKK 0.34
2007 5,973.76 DKK 0.34
2006 5,949.74 DKK 0.35
2005 6,034.42 DKK 0.38
2004 6,097.41 DKK 0.41
2003 6,098.67 DKK 0.42
2002 6,081.48 DKK 0.43
2001 6,063.10 DKK 0.44
2000 5,138.98 DKK 0.39