Ministry of Employment
DENMARK
Denmark’s 46th Report on the Application of the European Code of Social Security covering the period from 1 July 2018 to 30 June 2019
Annual report
For the period 1 July 2018 – 30 June 2019
Made by the Government of Denmark
In accordance with article 74 of the European Code of Social Security
Denmark has accepted the obligations of the Code under Parts II (Medical care), III (Sickness benefit), IV (Unemployment benefit), V (Old-age benefit), VI (Employment injury benefit), VII (Family benefit), VIII (Maternity benefit) and IX (Invalidity benefit).
Denmark has been bound, since 1955, by the Social Security (Minimum Standards) Convention, 1952 (No. 102), of the International Labour Organization (ILO)of which it has accepted Parts II, IV, V, VI and IX.
With regard to Parts II and III of the Code, Denmark has been bound, since 1978, by higher standards under the Medical Care and Sickness Benefits Convention, 1969 (No. 130) of the ILO.
With respect to the human rights treaties establishing the right to social security, Denmark has accepted the obligations under Article 12 of the European Social Charter, 1961, and Article 9 of the International Covenant of Economic, Social and Cultural Rights.
Reimbursement of medicines for the chronically ill
In Denmark, reimbursement of medicines is divided into two groups - reimbursement provided automatically, which includes the chronically ill, and reimbursement provided after individual application by a doctor. The reimbursement scheme looks as follows:
Reimbursement SCHEME 2019*
|
Annual personal expenditure on reimbursable medicine before deduction of reimbursement |
Reimbursement for persons |
Reimbursement for persons |
|
DKK 0-980 |
0 pct. |
60 pct. |
|
DKK 980-1,625 |
50 pct. |
60 pct. |
|
DKK 1,625-3,520 |
75 pct. |
75 pct. |
|
DKK 3,520 |
85 pct. |
85 pct. |
|
Adults: In excess of DKK 18,688 (patient's co-payment= DKK 4,110) |
100 pct. |
|
|
Persons under the age of 18: In excess of DKK 22,968 (patient's co-payment= DKK 4,110) |
100 pct. |
*The threshold of the reimbursement scheme is adjusted to the rate of inflation every year.
From 2018, the chronically ill will not have a co-payment that exceeds DKK 4,110 though the threshold is adjusted to the rate of inflation.
Reimbursement of cannabis products in the Danish Medicinal Cannabis Pilot Programme 2018-2021
Patients in Denmark who are prescribed medical cannabis as part of the Danish Medicinal Pilot Programme receive reimbursement.
The reimbursement amount is deducted automatically when purchased at the pharmacy. Terminally ill patients are reimbursed at 100 pct. when buying cannabis products under the pilot programme, whereas other patients are reimbursed at 50 pct. up to an annual reimbursement amount of DKK 10,000.
The reimbursement scheme is stated in act. No. 1519 of 18 December 2018.
Act No 272 of 26 March 2019 to amend the Danish Healthcare Act
Certain non-residents in Denmark will be charged payment for emergency hospital treatments that he or she may receive under a temporary stay in Denmark. These persons will also be charged payment for non-emergency hospital treatment in cases, where it is not reasonable to refer the person to treatment in his or her home country. The bill will not change the fact that the treatments can still be provided free of charge, when the region considers it reasonable. However, in case of emergency no acutely ill or injured persons can be denied hospital treatment in the public healthcare system with reference to payment claims.
The bill comes into force by 1 July 2019.
The Committee hopes that, as indicated in the report, the Danish Ministry of Health will provide an answer to the following questions raised in the Committee’s previous conclusions:
· Whether any limits to the duration of different types of medical care are prescribed in the national legislation, particularly as is regards diseases entailing prolonged care.
· In what cases municipalities and private providers may suspend or refuse provision of health services to the persons protected.
· How the Act. No. 113 of 31 January 2017 to amend the Sickness Benefits Act, Authorization Act and Danish Act on the right to complain and receive compensation within the health-care system helps to improve the consideration of complaints as to the quality or quantity of medical care.
Answer:
Reference is made to the appendix to the 45th report on the European Social Code (replies to requests under Part II), sent on 18 December 2018. Again, Denmark regrets any inconvenience the late replies might have caused. Below, you find copy of the Danish replies:
“Article 12 of the Code, Article 16 of Convention No. 130. Minimum duration of care.
Please specify whether any limits to the duration of different types of medical care are prescribed in the national legislation, particularly as is regards diseases entailing prolonged care.
Answer:
All residents in Denmark in need of hospital care may, within certain limits, freely choose any public and some private hospitals. In general, the duration of different types of medical care is based on a medical assessment.
If the region cannot ensure that treatment will be initiated within 30 days, patients have the right to a so-called ‘extended free choice of hospital’. This means that patients may choose to go to a private hospital in Denmark or to a public or private hospital abroad.
The regions are also required to ensure that any patient referred to a hospital is assessed with a view to diagnosis within one month from the date of referral. If, for medical reasons, it is not possible to determine the condition of the patient within one month, the patient must receive a detailed plan to ensure further investigation of his/her health problem, including, for example, further examinations at another hospital. If, for reasons of capacity, the region is not able to provide an assessment with a view to diagnosis within 30 days, the extended free choice of hospital applies, i.e. the patient may go to a private hospital or a hospital abroad to be diagnosed.
The right to treatment, diagnosis and free choice of hospital applies to both mental and physical illness.
Article 68 of the Code, Article 28 of Convention No. 130. Suspension of benefits.
The Committee notes that the Health Act assigns the responsibility for delivering health services to regions and municipalities. Please specify all cases where, in accordance with national laws and regulations, municipalities and private providers may suspend or refuse provision of health services to the persons protected.
Answer:
All residents in Denmark have access to the public healthcare system, and most services are provided free of charge. The municipalities, regions and private providers may only suspend or refuse health services provided under the Health Act in accordance with a medical assessment.
Article 69 of the Code, Article 29 of Convention No. 130. Right to complain and appeal.
The Committee requests the Government to specify how these amendments help to speed up and streamline the consideration of complaints as to the quality or quantity of medical care and how the resulting decision of the administration under the new approach may be appealed in court.
Answer:
With the amendment, which has been applied since 1 February 2017, any patient, who accepts an offer to enter into consultative dialogue with the relevant healthcare professionals, has to be offered an independent advisor, which they can bring to the meeting, free of charge. Before the amendment, the right to bring an advisor to the dialogue had its legal basis in the Public Administration Act; however, there was no requirement that the patient was offered an advisor. In 2013 the organization “Danish Patients” offered all patients who entered dialogue an independent advisor as part of a trial program. The trial was a success and the program has carried on since then, to some extent, with no basis in law. The amendment ensures that all patients who agree to consultative dialogue, are offered an independent advisor free of charge, and ensures that the program is permanent. This way all patients are ensured the opportunity to receive the same guidance. The independent advisors are not representatives for the patient, but they support the patient to ensure that the consultative dialogue is comfortable, constructive and equal. The amendment does not change the patient’s ability to appeal decisions to the court.”
· Act No 1522 of 18 December 2018
The act limits an employer’s right to information regarding an employee’s health or medical issues that are part of the municipality’s case concerning the reimbursement of sickness benefits to an employer.
· Act No 1526 of 18 December 2018
The act entails a legal basis for the suspension of the payment of social benefits to organized criminal gangs and in cases where the benefits have already been paid, to demand reimbursement.
· Act No 1710 of 27 December 2018
The act entails a legal basis for the local authorities to request information from the unemployment insurance fund regarding whether a person applying for sickness benefit is eligible for unemployment benefits.
· Act No 495 of 1 May 2019
The act ensures the right to sickness benefits regardless of whether or not the beneficiary participates in certain types of medical treatment.
Benefit rates of sickness cash benefits (sygedagpenge)
Sickness cash benefits are designed to compensate for the loss in earnings resulting from absence due to ill health. Persons receiving income from work, income substitutions such as unemployment benefits, or other earnings mainly derived from work may be entitled to sickness cash benefits.
When a person has received sickness cash benefits for 22 weeks during the last 9 months the health condition will have to be evaluated. If the person is assessed as still incapacitated to work, the payment will be prolonged. However, if the person does not fulfil the criteria for extending the payment of sickness benefit but is still unable to work, a job assessment scheme focusing on resources (ressourceforløb) with benefits payable will be offered (ressourceforløbsydelse).
The amount of sickness cash benefits that a person is entitled to is estimated on the basis of the hours of work that the person has carried out and the payment received. The maximum amount of sickness cash benefits a person can receive is 4,355 DKK per week (in 2019-level).
The benefit will be paid out as a running payment, as long as a person is incapacitated to work, although limited to maximum 22 weeks in the last 9 months.
For more details on the benefit rates, see https://www.retsinformation.dk/Forms/R0710.aspx?id=207562
Nothing to report
Nothing to report
Calculation of the replacement rate of benefit.
The Committee requests the Government to calculate the replacement rate of the sickness benefit for the standard beneficiary on the basis of the weekly or monthly, but not annual, amounts, in accordance with Title II of Article 65 of the report form for the Code.
Answer:
The Committee requests a calculation of the sickness benefit made for the standard beneficiary, who is depicted as a man with a wife and two children. As stated in the 45th report, the right to sickness benefit in Denmark is an individual right, independent of the marital status of the receiver of the benefits. Furthermore, the right is independent from the person’s status as a breadwinner. Most people are self-sufficient in Denmark, and for the most part, both spouses contribute to the economic support of the family. The fact that the benefit is an individual right means that both spouses can receive sickness benefits at the same time if both parties fulfil the legal requirements outlined in the Sickness Benefits Act.
The amount of sickness benefits disbursed to an employee is based on the individual’s previous weekly working hours before the illness, and the hourly earnings that were accumulated on average, in the present employment within the last 3 months. This calculation is made regardless of the employee’s status as a breadwinner.
The maximum amount of sickness benefits has been set, and it amounts to DKK 4,355 per week (in 2019-level).
The calculation for a skilled manual male employee with an annual wage of DKK 472,548 is at maximum DKK 4,335 per week. (DKK 431,024 when deducted by the labour market contribution of 8 pct.)
The Child and Youth allowances in Denmark in 2019 are as follows:
Age 0 – 2 years 4,557 DKK (on a quarterly basis)
Age 3 – 6 years 3,609 DKK
Age 7 – 14 years 2,838 DKK
Age 15 – 17 years 2,838 DKK
The allowance will be reduced if the tax base of the spouses is more than 782,600 DKK (in 2019-level).
Example:
A skilled manual male employee with an annual wage of 472,548 (title I section C - DKK 431,024 – when deducted the labour market contribution of 8 pct.) will be entitled to 4,791 DKK in benefits weekly. This includes 4,355 DKK in sickness benefits (title II section D), and it includes DKK 218 per child weekly (title II section E or F) if he has two children in the age of 7 – 14 years old.
· Act no. 1670 of 26 December 2017
From the 1st of October 2018, Denmark adopted a new unemployment insurance scheme for the self-employed and persons in non-standard jobs. The scheme aims to give better unemployment insurance coverage to self-employed persons; persons in non-standard jobs; persons with multiple jobs; and persons combining employment and self-employment.
In this new scheme, unemployment is defined in relation to activities rather than a categorization as either wage earner or self-employed person. Eligibility rules under this scheme, specifically focusing on self-employed workers and workers in non-standard jobs. The scheme is based on total (work-related) income, which includes: earnings from salaried employment and self-employment, surplus in own companies and secondary activities.
The unemployment benefit for self-employed and persons in non-standard jobs is calculated in the same way as for wage earners. The benefit calculation uses the same income base as for establishing eligibility.
· Act no. 1710 of 27 December 2018
Introduced on the 1st of January 2019, unemployment benefits in Denmark are now dependent on an individual’s period of residence within the country.
The requirement of former residence in Denmark is 5 years out of the latest 12 years, before applying for unemployment benefits, and this will affect new claims for unemployment benefits from the 1st of January 2019. In 2020, the requirement of residence will be 6 years out of the latest 12 years and from the 1st of January 2021 and thereafter, the requirement of residence will be 7 years out of the latest 12 years. Periods of residence in other Member States in the EU will be viewed as though they were periods of residence in Denmark. Furthermore, certain periods of residence abroad are equated to periods of residence in Denmark.
The purpose of the additional requirement of residence is among other things, to ensure that recipients of unemployment benefits have a strong connection to Denmark, to get more foreign nationals and Danish nationals into the labour market instead of receiving public benefits and to integrate foreign nationals into the Danish community to a larger degree. The requirement of residence applies equally to both Danish and foreign nationals.
Persons who are not entitled to unemployment benefits can be entitled to social assistance or integration benefits (kontanthjælp eller integrationsydelse), which is means-tested.
Benefit rates of unemployment benefits (arbejdsløshedsdagpenge)
Unlike most of the other branches of social security in Denmark, the unemployment insurance scheme is voluntary. Therefore, unemployment benefits in case of unemployment are not automatic and must be applied for. In order to be eligible to receive unemployment benefits the person must join an unemployment insurance fund (A-kasse) and pay contributions. The insurance covers benefits that a member can receive if he or she gets unemployed.
The benefits will be paid monthly, for a maximum of DKK 3,848 hours (2 years) within 3 years (in 2019-level). If a person has a part-time job, he or she can get supplementary unemployment benefits for maximum 30 weeks.
Benefit rates (in 2019-level):
· A full-time insured person can receive a maximum amount of DKK 18,866 monthly.
· A part-time insured person can receive a maximum amount of DKK 12,577 monthly.
For more details on the benefit rates, see https://star.dk/media/9137/vejledning-om-satser-mv-paa-arbejdsloeshedsomraadet-januar-2019.pdf
Nothing to report
· Act no. 442 of 8 May 2018
The Act stipulates that entitlement to disability pension at the full rate will be subject to a period of residence equivalent to no less than 9/10 of the years between one’s 15th birthday and the date on which the pension is first payable. If the condition for pension at the full rate is not met, the amount of pension payable will be assessed according to the ratio between the period of residence and 9/10 of the years between the 15th birthday to the date on which the pension is first payable. The Act also stipulates that refugees, who have been granted residence permit in Denmark in accordance with sections 7 or 8 of the Aliens Act, shall not be subject to more favourable rules for calculating the pension. The Act also introduced more flexible payments of postponed pension.
The Act was set into force on the 1st of July 2018.
· Act no. 701 of 8 June 2018 – (The Act was set into force 1st July 2018)
The Act ensures that holiday allowance from a special holiday fund created, as a part of the new holiday law, does not affect the old age pension when it is paid out.
· Act no. 1548 of 18 December 2018
The Act introduces a media allowance (“mediecheck”) that will be granted to pensioners. The media allowance was introduced as a part of a media-agreement, where media licences are replaced with a media tax. The media allowance is given to those pensioners who, according to current regulation, are entitled to a reduced media licence.
· Act No. 1526 of 18 December 2018
The Act sets a maximum of the payable amount of pension for a period of three years for people who have been convicted of certain criminal charges.
· Act no. 125 of 6 February 2019
The Act will increase the rates of old age pension by 0.2 pct., and lower the income effect on old age pension by:
1. Raising the deductions in the calculated income for individual work income,
2. Temporarily increasing the deduction in the calculated income by 15,000 DKK for unwed single persons and 30,000 DKK for couples
3. Raising the deduction in the calculated income for a non-pensioner spouse by 40,000 DKK a year.
Rates of old age pension
|
Old Age Pensions per month (DKK) |
||
|
Non-single persons: |
January 2018 |
January 2019 |
|
Basic amount |
6,237 |
6,327 |
|
Pension supplement |
3,333 |
3,453 |
|
Total |
9,570 |
9,780 |
|
Single persons: |
||
|
Basic amount |
6,237 |
6,327 |
|
Pension supplement |
6,728 |
6,923 |
|
Total |
12,965 |
13,250 |
Supplementary pension allowance (“ældrecheck”) was DKK 17,200 in 2018 and is DKK 17,600 in 2019 (per year).
Media allowance (“mediecheck”) is DKK 235 in 2019 (per year).
Article 1 a (3) of Act no. 1208 of the 7th of November 2017 states that the public retirement age will be indexed by law every 5 years. The next indexation by regulation is set to be in 2020, and it is expected to increase the public retirement age to 69 years in 2035.
The former Government has established a think tank for longer and better senior working lives. The Think Tank has published a number of papers and evaluations relating to senior workers and reasons to retire. The Think Tank has its own website, where the papers can be downloaded: https://seniortaenketanken.dk/viden
Most of the Think Tank’s work is in Danish, but it is possible to read certain articles in English – an example is: “Well-being during the transition from work to retirement”: https://seniortaenketanken.dk/viden/well-being-during-the-transition-from-work-to-retirement
The Think Tank has not yet finalized its work.
Article 29 of the Code. Period of residence for calculation of Benefit.
The report refers to Act No. 442 of 8 May 2018 which stipulates that entitlement to pension at the full rate is subject to a period of residence equivalent to no less than nine-tenths of the years between the 15th birthday and the date on which the pension is first payable. If the condition for pension at the full rate is not met, the amount of pension payable will be assessed according to the ratio between the period of residence and nine-tenths of the years between the 15th birthday and the date on which the pension is first payable. The Committee requests the Government to calculate according to the new rules the replacement rate of the old-age pension of the standard beneficiary who has completed 20 years of residence in Denmark.
Answer:
The new legislation regarding a period of residence for old-age pension at the full rate will have no effect for citizens who reach the state pension age before 2025. A standard beneficiary who has resided in Denmark for 20 years will therefore in 2019, have a replacement rate according to the old rules of period of residency which amounts to 50 pct.
However, to illustrate the new rules, an example for a person (single), who will retire in year 2026 with 20 years of residency in Denmark, is illustrated below (in 2019 price and wage levels).
|
(DDK in 2019- level) |
Replacement rate |
Yearly old-age pension (DDK in 2019 levels) |
|||||
|
Years of residency |
Year of retirement |
Public retirement age |
Full rate for singles |
Old rules |
New rules |
Old rules |
New rules |
|
20 |
2026 |
67 |
176,600 |
50% |
43% |
88,296 |
75,936 |
· Act. No. 550 of 7 May 2019 to amend the Danish Workers’ Compensation Act, cf. Consolidation Act No. 216 of 27 February 2017.
The amendment includes, among other things:
· The criteria for recognizing an accident as a work injury has been eased.
· Labour Market Insurance may itself review all parts of a decision when they receive a complaint against the decision.
· The time limits in the Workers' Compensation Act to appeal to the National Board of Appeal have become the same for all, regardless of residence.
· A number of clarifications and adjustments of a technical nature.
Annual revalorization of benefits:
The maximum compensation for permanent injury is DKK 898,500 (in 2019-level)
The maximum compensation for loss of earning capacity, which does not depend on the permanent injury percentage, is an annual amount of DKK 539,000 (in 2019-level) until the retirement age.
Nothing to report
Nothing to report
Employment injury benefit:
The report states that the Government will propose changes and simplification of the Workers’ Compensation Act, which is expected to be negotiated in the Danish Parliament in 2018–19. The Committee takes note of this information and hopes that in submitting its proposals, the Government will take into account the international obligations accepted by Denmark under Part VI of the Code, as detailed below.
Answer:
Denmark has not implemented the expected reform of the Workers’ Compensation Act in 2018-2019. Instead, in the spring of 2019, the Danish Parliament adopted the above mentioned amendments to the Act. The main change is a restoration of practices for when an accident can be recognized as an industrial injury after the rate of recognitions had fallen as a result of a Supreme Court ruling in 2013 which narrowed the criteria for when an accident could be recognized. The other changes in the bill are mostly simplifications and of a technical nature.
Article 32(b) of the Code. Temporary incapacity for work.
The report states that the workers’ compensation scheme in Denmark does not cover compensation for the loss of earnings in case of temporary incapacity to work due to an employment injury. However, employees and self-employed who suffer a temporary incapacity to work due to sickness are covered by the Danish general sickness benefit scheme. In addition, approximately 70 pct. of the Danish labour force have collective agreements with employers, which ensure them full wages during sickness absence, including absence due to an employment injury. Moreover, in a number of sectors, collective agreements have an increased and better coverage for sickness absence when the leave is due to an employment injury. The Committee takes notes of these explanations, but wishes however to recall that the sickness benefit granted under the general sickness benefit scheme has to be adjusted in such a manner as to ensure additional protection in case of employment injury, as prescribed by Part VI of the Code, particularly with regard to the following requirements:
a) Article 32(b) in conjunction with Article 36 of the Code. Calculation of replacement rate of the benefit. The Committee asks the Government to demonstrate that in case of temporary incapacity to work due to an employment injury, a standard beneficiary who has one day of insurance is guaranteed a benefit at the rate of at least 50 per cent of the standard wage, prescribed by Part VI of the Code.
b) Article 32(b) in conjunction with Article 37 of the Code. No qualifying period. The Committee notes that an employer is obliged to pay sickness benefit during the first 30 days of an employee’s illness. In accordance with section 30 of the Consolidated Act No. 826 of 23 June 2017 on Sickness Benefit (Consolidated Act), in order to meet the conditions in relation to the employer, the employee has to be employed for the last eight weeks prior to the absence and during this period, have at least 74 hours of work. After 30 days of illness, the sickness benefit is provided by the local authorities. In accordance with section 32 of the Consolidated Act, the employee has to be employed for at least 240 hours in the last six months prior to the first day of absence and for at least five of these months be employed for no less than 40 hours each month. The Committee recalls that in accordance with Article 37 of the Code, employment injury benefits may not be subject to contributory or insurance periods. The Committee asks the Government to ensure that the entitlement to the sickness benefit in case of temporary incapacity for work resulting from an employment injury to be granted without any condition as to the completion of a qualifying period.
c) Article 32(b) in conjunction with Article 38 of the Code. Duration of benefit. In accordance with section 24 of the Consolidated Act, a person who becomes incapacitated to work must have their situation re-evaluated, when the payment of sickness benefits has reached 22 weeks, within the last nine months. The report states that the local authorities must decide if the sickness benefits can be extended in accordance with the related legislation. It further notes that if this is not the case, but the person is still incapacitated, the local authorities will offer a job assessment process. On this point, the Committee notes that as prescribed in section 27(6) of the Consolidated Act, the local authorities extend the duration of sickness benefit when, among others, “an action for damages has been brought under the Occupational Injury Act or the Act relating to Protection against Work Injuries”. The Committee asks the Government to confirm that the local authorities are obliged to extend the duration of sickness benefit due to an employment injury without the requirement for a beneficiary to participate in the job assessment process.
Answer:
Denmark is of the opinion that Denmark is compliant with the purpose of the provision in Article 32. It is Denmark’s viewpoint that the sickness benefits granted under the general sickness benefit scheme ensures protection in case of employment injury in regards to the three requirements specified in the Conclusions.
(a) A standard beneficiary who has one day of insurance is in case of temporary incapacity to work due to an employment injury is guaranteed a benefit at the rate of 51 pct. of the standard wage. The annual wage of a skilled manual male employee is estimated at DKK 431,024 (in 2017-level - based on full-time work; the reference wage of DKK 472,548 has been deducted by the labour market contribution of 8 pct.). A skilled manual male employee with an annual wage of DKK 431,024 is entitled to sickness cash benefits of DKK 220,570 per year (in 2017-level).
(b) The entitlement to the sickness benefit in case of temporary incapacity to work resulting from an employment injury is granted without any condition as to the completion of a qualifying period. In accordance with section 34 of the Sickness Benefit Act (Consolidated Act), a person who has a recognized work injury and is not entitled to sickness benefits from the employer, is entitled to sickness benefits from the local authority from the first day of absence regardless of whether the person fulfills the qualifying period conditions for entitlement to sickness benefits.
(c) The local authorities are obliged to extend the duration of sickness benefits to a person who is incapable of work due to sickness, if the person has reported an employment injury. The beneficiary is however, like other beneficiaries, required to cooperate in the follow-up activities of the municipality throughout the sickness benefit period. A withdrawal of sickness benefits is authorized on condition that the beneficiary fails to cooperate without reasonable grounds. The overriding purpose of the sickness benefit scheme is twofold: (i) to provide financial compensation for absence due to illness, and (ii) to help the beneficiary regain the work ability and return to the labour market as soon as possible. The requirement to cooperate in the follow-up activities should be seen in light of the second purpose. Denmark considers the requirement to be reasonable, because the government has a responsibility to help people return to the labour market after sick leave, regardless of the cause of the leave.
It is also Denmark's opinion that Return-To-Work efforts must be considered one of the purposes of the Code, cf. for instance article 34 (3), which states that treatments for persons affected by an occupational injury must be given with the aim of preserving, restoring or improving the health of the person protected and his ability to work and meet his personal needs.
Article 36(3) of the Code. Conversion of the periodical benefit for permanent partial loss of earning capacity into a lump-sum.
The Committee notes from the publication The Danish Social Security System 2016 that the industrial injury scheme grants compensation for permanent injury (non-pecuniary damage), loss of earning capacity and death of breadwinner.
The maximum compensation for permanent injury is DKK 841,500. The compensation does not depend on loss of earning capacity and is always payable as a lump-sum. The maximum compensation for loss of earning capacity, which does not depend on the permanent injury percentage, is an annual amount of DKK 385,618 until the retirement age. Compensation for a loss of earning capacity of less than 50 per cent is paid as a lump-sum. Compensation for a loss of earning capacity of 50 per cent or more is paid as monthly payments.
According to Article 36 of the Code, compensation for permanent injury or loss of earning capacity, total or partial, shall be a periodical payment. Compensation for partial incapacity shall represent a suitable proportion of that specified for total incapacity. As to the lump-sum compensation, Article 36(3) of the Code authorizes conversion of the periodical benefit into a lump-sum payment only: (a) where the degree of incapacity is slight (less than 25 per cent); or (b) where the competent authority is satisfied that the lump-sum will be properly utilized to the benefit of the claimant. The Committee observes that these requirements of the Code are not met on both points. According to the consolidated report, up to a degree of earning capacity loss of 50 pct., which in terms of the Code is not slight, periodical payments must be converted into a lump-sum. For degrees of 50 pct. and above, a lump-sum payment corresponding to 50 pct. may be granted on the request of the beneficiary. The competent authority does not exercise any supervision as to whether the lump-sum will be properly utilized, unless the beneficiary is declared by the court incapable of managing his or her own affairs. In this respect, the 45th report states that Denmark finds that the possibilities for an injured person to obtain financial support after an employment injury “should be seen in context with the overall social security system”. Compensation for loss of earning capacity is thus not the sole financial support that an injured person in Denmark can obtain if the person is unable to work after an employment injury. The Danish sickness and unemployment benefit schemes, for instance, also cover persons who have suffered an employment injury. People with a permanent loss of working capacity might also qualify for flexi-job or disability pension depending on the severity of their injury or disease. These benefits are paid out periodically (monthly). Therefore, in Denmark it is not considered a risk with regard to the injured person’s future financial situation to pay out the compensation as a lump-sum when the injured person has half or more of his or her earning capacity intact. On this basis, the Government is of the opinion that Denmark does not violate the purpose of the provision in Article 36(3).
Taking into account the explanations of the Government, the Committee wishes to recall that the purpose of Part VI of the Code consists in establishing a legal obligation of compensating a permanent loss of earning capacity by a lifelong, stable, predictable and proportionate periodical payment provided throughout the contingency at the prescribed level without any additional qualifying conditions. Replacing such legal obligation with a lump-sum payment accompanied by the possibility to qualify for several different periodical benefits each subjected to different qualifying conditions (unemployment benefit, flexi-job, disability pension etc.), as mentioned by the Government, cannot be considered as fulfilling this purpose. Nevertheless, the Committee invites the Government to demonstrate with a concrete example that throughout the contingency of the permanent partial loss of earning capacity of 25 per cent and over the beneficiary will be entitled, in addition to the lump-sum-compensation, to certain periodical payments from other social security schemes ensuring his or her continuous financial support. As to the level of this support, the Committee recalls that, according to Article 36(2) of the Code, the benefit for partial loss of earning capacity shall be graduated according to the different levels of incapacity and shall represent a suitable proportion of that specified for total loss of earning capacity. If commuted into a lump-sum, it shall therefore correspond to the actuarial equivalent of the respective proportion of the life annuity for total incapacity. The Committee requests the Government to specify whether the lump-sum compensation for permanent partial incapacity corresponds to an actuarial equivalent of the periodical benefit calculated in proportion to the benefit for total incapacity.
Answer:
Denmark would like to provide two examples of beneficiaries with a permanent partial loss of earning capacity of 25 pct. and over, who is entitled to certain periodical payments from the social security system in addition to a lump-sum compensation.
The first example is a 50-year old, who was injured in an accident and is compensated for a loss of earning capacity of 35 pct. The compensation is paid as a tax free lump-sum of DKK 1,552,947. The injured person has been granted a flexi-job and therefore receives monthly payments alongside the compensation. The salary paid by the employer and the flexible pay subsidy paid by the local authority amounts to DKK 280,219 per year. Since the annual wage of the injured person was DKK 451,000 before the injury, the injured person now earns more than 50 pct. of the original income in addition to the above mentioned lump-sum, which converted to periodical payments amounts to approx. DKK 146,500 per year. Including the lump-sum, the injured person overall receives approx. 80 per cent of the original income. All relevant numbers are adjusted to 2019-level.
The second example is a 49-year old, who was injured in an accident and is compensated for a loss of earning capacity of 50 pct. The compensation is paid as a tax free lump-sum of DKK 1,621,027. The injured person is granted disability pension and therefore receives monthly benefits alongside the compensation. The injured person receives disability pension of DKK 198,948 per year. Since the annual wage of the injured person was DKK 345,000 before the injury, the injured person now earns approx. 55 pct. of the original income in addition to the above mentioned lump-sum, which converted to periodical payments amounts to approx. DKK 145,000 per year. Including the lump-sum, the injured person overall receives approx. 90 pct. of the original income. All relevant numbers are adjusted to 2019-level.
Conversion of a periodical benefit to a lump-sum compensation takes place using a number of capitalization factors. The capitalization factors include the basic interest rate, expected mortality and taxation of current benefits. It is a written condition in the general notes to the Workers’ Compensation Act that the principles behind the capitalization factors are that the injured person after tax in principle gets the same amount, regardless of whether he or she receives the compensation as a lump-sum compensation or as a periodical benefit.
Article 38 in conjunction with Article 68(c) of the Code. Duration of benefit.
(a) Permanent incapacity.
According to the consolidated report, monthly compensation payments cease by the end of the month when the injured person reaches the national pension age. The Committee pointed out in its previous conclusions that this provision is not in with Article 38 of the Code, which requires payment of compensation for permanent incapacity throughout the contingency (until death of the injured person). In reply, the Government states that the right to compensation for loss of earning capacity in Denmark replaces the ordinary wage income and the situation should therefore be compared to a person with a wage income who ceases to receive a wage when retiring. Similarly, a person receiving financial compensation for loss of earning capacity will cease to receive it when reaching the retirement age, after which both groups instead of wages or compensation will receive a publicly funded lifelong old-age pension. For a person with an employment injury, whose active participation in the labour market ends due to old age, the loss of labour income is thus no longer a result of the employment injury, but because of the person’s age.
The Committee recalls that the Code requires a higher level of protection to be guaranteed to protected persons with a disability resulting from an employment accident or occupational disease in comparison with the protection guaranteed in respect of other contingencies covered by the Code, including old age. Employment injury benefits compensate not only for loss of wages but also for the loss in the quality of life due to permanent disability, as well as for the additional costs that may be incurred by the disablement, which continue after reaching pensionable age. Article 68 of the Code therefore does not permit any suspension of the employment injury benefit on the basis of the age of the insured person. It permits, however, avoiding paying two or more social security cash benefits, such as old-age and disability pensions, at the same time. The Committee would like to specify that as prescribed in paragraph (c) of Article 68, when the person concerned is in receipt of two social security cash benefits, the benefit may be suspended only for the part not exceeding the other benefit. Therefore, a beneficiary whose disability benefit is suspended due to the payment of the old-age benefit to which he/she becomes entitled upon reaching pensionable age must be guaranteed a pension in an amount corresponding at least to the level of the disability pension. In light of these explanations, the Committee requests the Government to ensure that the old-age pension of the beneficiary to be granted is at a level at least equivalent to the level of the disability pension or to maintain the payment of the disability pension if higher than the old-age pension to which the person becomes entitled.
Answer:
Denmark maintains that the right to compensation for loss of earning capacity has to be seen in close connection to the old-age pension. The right to compensation for loss of earning capacity in Denmark replaces the ordinary wage income, and the situation should therefore be compared to a person with a wage income. Therefore, a person with a loss of earning capacity due to an occupational accident will receive a financial compensation for loss of earning capacity until the retirement age, after which the person's compensation will stop. This corresponds to an employed person with a wage ceasing to receive pay when retiring, after which both groups instead will receive a tax-financed old-age pension, which is life-long. For a person with an occupational injury, whose active participation in the labour market ends due to old age, the loss of labour income is thus no longer a result of the work injury, but because of the person’s age.
Compensation for the loss in the quality of life due to permanent disability covers the injured person throughout the contingency. The compensation is paid as a lump-sum and covers the loss in the quality of life before and after retirement.
Compensation for future costs of treatment, medicine, aids, etc. are paid as a lump-sum and can cover costs for a limited period of time or permanently. The compensation for permanent future expenses is calculated by multiplying the average annual expenses with a capitalization factor. The same capitalization factor is also used when calculating the lump-sum compensation for loss of earning capacity.
Denmark considers on this basis that Denmark is compliant with the purpose of the provision in Article 38.
(b) Survivors’ benefit.
The Committee notes from the publication The Danish Social Security System 2016 that compensation for loss of a breadwinner is granted to the spouse or cohabiting partner as monthly payments for a period of up to ten years. The Committee asks the Government to assess compliance of this provision with Articles 32(d) and 38 of the Code, according to which the survivor’s benefit shall be paid throughout the contingency inasmuch as a person is presumed to be incapable of self-support.
Answer:
Denmark finds that the possibilities for the spouse or cohabiting partner to obtain compensation for loss of the breadwinner should be seen in context with the development and present status of the conditions in the labour market. The Danish labour market is characterized by high participation rates among both men and women and a decreasing wage gap between genders. A spouse or cohabiting partner who is capable of work is therefore likely to be able to provide for one self within ten years.
Denmark does recognize that the contingency can be longer than ten years. The Danish Workers’ Compensation system therefore provides the possibility to extend the duration of compensation for loss of the breadwinner beyond ten years.
On this basis, Denmark is of the opinion that Denmark is in compliance with the purpose of the provision in Article 38.
Changes made during the reference period 1 July 2018 – 30 June 2019
Benefit rates of the Danish child and youth allowance (børne- og ungeydelse)
The Danish child and youth allowance is a tax free cash benefit aimed at improving the living conditions of families with children. The allowance provided depends on the age of the child:
· For children aged 0 to 14, the allowance is granted in accordance with the child allowance scheme, which contains three subgroups (children aged 0-2, 3-6, and 7-14). Children aged 0-2 will receive 4,557 DKK quarterly (in 2019-level). Children aged 3-6 will receive 3,609 DKK quarterly (in 2019-level).
· For children aged 15 to 17, the allowance is granted in accordance with the youth allowance scheme. Children in the age group 7-14 will receive 2,838 DKK quarterly (in 2019-level).
· Children aged 15-17 will receive 2,838 DKK quarterly, although the allowance will be paid in monthly rates of 946 DKK (in 2019-level).
For more details on the benefit rates, e.g. the 2018-levels, see https://www.skm.dk/skattetal/satser/satser-og-beloebsgraenser/boerne-og-ungeydelsesloven
Benefit rates of the ordinary child benefit (børnetilskud)
The ordinary child benefit is a subsidy for children that in general have a higher need for economic support compared to children living with both their parents and thus have two sources of income. The primary group of recipients is children of single parents, children of disability pensioners and children lacking a provider.
· Ordinary child benefit amounts to 5,764 DKK yearly for each child (In 2019-level). Extra child benefit amounts to 5,876 DKK per family per year (In 2019-level).
· Special child benefit amounts to a basic amount of 14,736 DKK per year and special addition to 1,908 DKK per year (In 2019-level). If there are no parents, special child benefit amounts to 29,472 DKK per year and a special addition of 3,816 DKK per year (In 2019-level).
The payments will be paid quarterly, starting from the quarter following the time when the conditions for receiving the benefit are met. The benefits are exempted from tax.
The benefits will be paid as long as the conditions are met, but not any longer than the end of the quarter of the year, when then child turns 18 years.
For more details on the benefit rates, see table 18 in https://www.retsinformation.dk/Forms/R0710.aspx?id=207558
Changes decided, planned or proposed for the following year
There is an ongoing analysis concerning separated families with children. The analysis is expected to be finalized before the end of 2019. In this reporting period, the former Danish Government represented a proposal in regards to dividing the child and youth allowance between the separated parents. However, the proposal lapsed because of the Danish General Election in 2019.
The new Danish social democratic Government has decided to introduce a Temporary Child Benefit for parents on integration benefits and parents affected by the current ceiling over cash benefits. The earmarked Temporary Child Benefit will only be provisional as the Government intends to reform the cash benefit system. In addition, the Government plans to reintroduce a poverty threshold in order to measure and monitor the risk of poverty in society.
Changes made during the reference period 1 July 2018 – 30 June 2019
· Act No. 701 of 8 June 2018 (Consequential changes to the legislation on social benefits because of the adoption of the new holiday law introducing ‘concurrent’ holiday)
· The Act ensures that the Act on Maternity Leave, including the right to take holiday during a period of maternity leave, is consistent with the new regulations regarding the right to take holiday and the right to paid leave.
· Act No 1526 of 18 December 2018
The Act entails a legal basis for the suspension of the payment of social benefits to organized criminal gangs and in cases where the benefits have already been paid, to demand reimbursement.
· Act No 1710 of 27 December 2018
The Act entails a legal basis for Udbetaling Danmark (public authority administered by the ATP Group) to request information from the unemployment insurance funds regarding whether a person applying for maternity benefits is entitled to unemployment benefits.
· Act No 497 of 1 May 2019 (Consequential changes due to changes in adoption legislation)
The Act assimilates a ‘temporary placement’ under the Adoption Act with adoption meaning that there will be a right to take leave and to receive maternity benefits in according with the Maternity Act for parents having a child in ‘temporary placement’ before the adoption.
Benefit rates of maternity and paternity benefits (barseldagpenge)
The maternity benefit is a financial compensation for loss of income due to absence from work as a result of pregnancy, birth or adoption. Persons receiving income from work, income substitutions such as unemployment benefits, or other earnings mainly derived from work may be entitled to maternity benefits.
· A mother has the right to maternity leave from 4 weeks before the expected birth date. After the birth she has the right and is obliged to maternity leave for 2 weeks. Hereafter, she has the right to 12 weeks of maternity leave.
· After the first 14 weeks of maternity leave, each parent is entitled to 32 weeks of parental leave. However, they are only entitled to paid leave for 32 weeks in total. Fathers can start the leave within the first 14 weeks after birth. The parents have the option to divide the leave according to individual wishes.
· The other parent (father or co-mother) is entitled to 2 weeks of paternity leave after the birth.
The parents can receive a maximum amount of DKK 4,355 per week (in 2019-level). The exact amount depends on the income which the person has had before the leave. For more details on the benefit rates, see https://www.retsinformation.dk/Forms/R0710.aspx?id=207562
Changes decided, planned or proposed for the following year
Nothing to report
Research/evaluations, completed or initiated
Nothing to report
Changes made during the reference period 1 July 2018 – 30 June 2019
· Act No. 442 of 8th May 2018
The Act stipulates that entitlement to disability pension at the full rate is subject to a period of residence equivalent to no less than 9/10 of the years between the 15th birthday and the date on which the pension is first payable. If the condition for pension at the full rate is not met, the amount of pension payable will be assessed according to the ratio between the period of residence and 9/10 of the years between the 15th birthday to the date on which the pension is first payable. The Act also stipulates that refugees, who have been granted a residence permit in Denmark in accordance with sections 7 or 8 of the Aliens Act, shall not be subject to more favourable rules for calculating the pension.
The Act was set into force 1st July 2018.
· Act No. 701 of 8th June 2018 – The Act was set into force on the 1st of July, 2018
The Act ensures that holiday allowances from a special holiday fund, which was established as a consequence of the new Holiday Law, does not affect the disability pension when it is paid out.
· Act no. 1548 of 18th December 2018
The Act introduced a media allowance (“mediecheck”) granted to pensioners. The media allowance was introduced as a part of a political agreement, where the media license fee is replaced by a media tax. The media allowance is granted to those pensioners that, according to the current regulation, are entitled to a reduced media licence.
· Act No. 1526 of 18th December 2018
The Act sets a maximum of the payable amount of pension for a period of three years for people who have been convicted of certain criminal charges.
· Act No. 125 of 6th February 2019
The Act lowered the income effect on disability pension by raising the deduction in the calculated income for a non-pensioner spouse to 40.000 DKK a year.
· Act No. 339 of 2nd April 2019
The Act introduced a mandatory pension for people who receive a disability pension. The contributions to the mandatory pension will be paid from 2020 as 0.3 pct. of the calculated disability pension, with a deduction of ATP-contributions and other supplementary second pillar pensions. The contributions will increase by 0.3 percent per year until 2030. In 2030, the contributions will be 3.3 percent. The contributions to the mandatory pension are financed by the state and will not reduce the disability pension.
· Act No. 495 of 1st may 2019
On a trial basis, there has been a temporary right to refuse certain treatments without it affecting the right to disability pension. The Act gives a permanent right to refuse to receive treatment by a physician in form of surgery or prescription medicine or other similar treatments, without it affecting the right to disability pension.
Rates of disability pension
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Disability pension per month (DKK) |
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Non-single persons: |
January 2018 |
January 2019 |
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Disability pension |
15,846 |
16,044 |
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Single persons: |
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Disability pension |
18,642 |
18,875 |
The benefit rates will be adjusted according to personal income of a certain amount. The benefits may also be adjusted according to the income of the spouse or partner if this exceeds a certain ceiling. The disability pension is granted permanently. At the pensionable age, it will be replaced by the old-age pension.
For more details on the benefit rates, see tables 5-11 in https://www.retsinformation.dk/Forms/R0710.aspx?id=207558
Changes decided, planned or proposed for the following year
-
Research/evaluations, completed or initiated
-
Article 56(b) of the Code. Calculation of replacement rate of the benefit.
The Committee notes that, according to Act No. 442 of 8 May 2018, entitlement to a disability pension at the full rate is subject to a period of residence equivalent to no less than nine-tenths of the years between the 15th birthday and the date on which the pension becomes payable. If the condition for pension at the full rate is not met, the amount of pension payable will be assessed according to the ratio between the period of residence and nine-tenths of the years between the 15th birthday and the date on which the pension is first payable. A person who became fully disabled at the age of 45 years and who has resided in Denmark for ten years after his or her 15th birthday (the qualifying period of residence allowed by Article 57(1)(a) of the Code), will be entitled to DKK 82,776 (yearly amount) in disability pension, if the disability pension is awarded after the 1 July 2018. The Committee observes that this amount will correspond to a replacement rate of approximately 23 per cent of an unskilled worker’s wage (DKK 358,006 in 2014) instead of 40 per cent guaranteed by the Code. It notes, however, from the report that to supplement the disability pension, it is possible to apply for social assistance. In view of the insufficiency of the amount of the disability pension paid under the conditions prescribed by the Code, the Committee invites the Government to demonstrate that Part IX of the Code may be applied on the basis of social assistance which supplements the disability pension or provides an alternative to it.
Answer:
Denmark notes that Danish disability pension is tax funded, and that the entitlement is based on a residence period and not on contributions.
The ‘Pro rata temporis’ principle gives the eligible right to a proportional benefit if the person concerned has not earned sufficient rights to a full benefit. The principle is mainly limited to pensions. A person who works successively in several countries until the retirement age or granting of disability pension can earn partial pensions in the individual EU/EEA countries or Switzerland. This principle, in conjunction with the principle of exportability, ensures that a pensioner may be entitled to pensions from all the Member States in which he or she has acquired rights. By subsidy, the pensioners are entitled to what corresponds to a full pension and therefore get the pensions from the different countries anywhere in the EU/EEA area or in Switzerland.
Pensioners who receive a partial disability pension can apply for social assistance to supplement the income from the pension. Social assistance can be provided if the person does not have another income, or personal savings that can cover his or her financial needs. The total amount of social assistance and partial disability pension cannot exceed the amount that would have been paid, if the person had been entitled to a full pension.
Denmark has not ratified Part X of the European Code of Social Security.
See submitted art. 76 report.
Articles 65–67 of the Code. Determination of the reference wage.
The Committee recalls that the 42nd report on the Code confirmed, in accordance with the ILO technical note, that male employees in “manufacturing” and in “manufacturing machinery and equipment n.e.c.” are the relevant reference group in relation to Articles 65–67 of the Code and the 2014 data on employment and wages of these employees will be obtained from the new Eurostat Structure of Earnings Survey (SES), Statistics on Income and Living Conditions (SILC) and Labour Force Survey (LFS) to be published in 2016. The 43rd detailed report, however, determined the reference wage of a skilled (DKK 393,555 based on full-time working week – 37 hours) and unskilled manual male employee (DKK 358,006) in the iron and metal industry on the basis of the data provided by the Confederation of Danish Employers for 2014, which is substantially higher than the Eurostat data and therefore affects the calculation of the replacement rate of benefits under the Code. The 45th report states that, since wages and working conditions in the Danish labour market are generally determined by the social partners in collective agreements, the Government requested the Confederation of Danish Employers to update information on a skilled manual male employee in the iron and metal industry in order to meet the requirements of the Code. However, the Confederation of Danish Employers has replied that it is not possible to produce statistical figures that meet the requirements of the Code. Their figures show that the average wage in the metal industry (male or female) was DKK 375,356 for a skilled worker and DKK 302,928 for an unskilled worker (in 2017). The Committee observes that the average wage for male and female workers taken together is substantially lower than the wage of skilled or unskilled manual male employees in the iron and metal industry in 2014. In this regard, the Committee asks the Government to clarify the available statistical options for determining the reference wage of the skilled and unskilled worker in accordance with Articles 65–67 of the Code, if necessary with the ILO’s technical support.
Answer:
The Ministry of Employment has looked at statistical options for determining the reference wage of a Danish skilled and unskilled worker in accordance with the Articles in the Code on the basis of available figures and statistics from Statistics Denmark.
In Denmark, a skilled and unskilled male employee in the iron and metal industry are today to a minor extent representative as standard beneficiaries for many social benefits. For example, when it comes to old age pension, the figures for these two groups were, respectively, only 41,000 and 22,000 people (in 2017).
Having that in mind and the options under article 66.7 where the reference sectorial group can be expanded, the Ministry suggests to use the average wage based on all employees in the sectorial group ‘Manufacturing Industrial Activities’, cf. the second row highlighted in the table below. Respectively, 52,000 and 87,000 employees are included in the calculation, far more than only looking at employees in iron and metal manufacturing industrial activities.
In 2017 (latest data available now), the reference wage of a skilled and unskilled (male) employee would be respectively DKK 39,379 and DKK 32,991.
The Ministry is still considering how to determine the reference wage for future reporting, since it seems outdated from a Danish view only to look at wage statistics for male employees.
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Reference wage of skilled and unskilled workers (2017) |
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Remarks: · For both rows, a standard monthly wage has been used. Statistics Denmark’s calculation is based on a standard wage week of 37 hours. · First and second row show the average monthly wage for men who work in the major group of economic activities (ISOC Division 24-29), respectively, and in private manufacturing industrial activities in total. The distinction between skilled and unskilled is based on the employees’ highest documented education. Unskilled employees also include persons with an unknown education or unfinished primary school education. · Third and fourth row show the average monthly income for all employees with the exception of persons in a managerial position or persons who are in positions that entail knowledge on the highest level of the area in question (ISCO major group 1, 2 and 3). The distinction between skilled and unskilled employees is solely based on the job tasks and duties. Skilled employees are defined by ISCO major groups 4-7, and unskilled employees are defined by ISCO major groups 8 and 9. Source: Calculation made by the Ministry of Employment based on wages statistics registered in the Ministry of Finance (lovmodellen) and in the Statistikbanken.dk (Statistics Denmark). |
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Adjustment of benefits to the cost of living
In reply to the Committee’s previous request for statistical data on the cost of living and the corresponding adjustment of the long-term benefits which has not been supplied in the reports since 2011, the Government indicates that benefits are adjusted yearly by a rate that is based on the wage development on the Danish labour market. The Committee requests the Government to demonstrate that the benefit adjustment rate based on the wage development has permitted the purchasing power of the long-term benefits to be maintained in payment vis-à-vis the rate of inflation in Denmark since 2011, as requested in Title VI of Article 65 of the report form for the Code.
Answer:
Unemployment benefits, cash benefits, public pensions etc. are regulated annually. In general, the annual adjustment rate depends on the previous wage development in the private sector, e.g. the regulation of benefits in 2018 is a result of the wage increase in 2016 (The so-called “sats-regulering” in Danish terminology).
If wages increase by less than 2.0 pct., the benefit adjustment rate corresponds to the wage increase. If the wage increases by 2.0-2.3 pct., the benefit adjustment rate is 2.0 pct., and if wages grow by more than 2.3 pct., the adjustment rate equals the wage increase minus 0.3 percentage points.
The Tax Reform 2012 included co-financing from annual reductions in the regulation of social transfer incomes of up to 0.75 percentage points from 2016-2023.
Over the period 2011-2018 social benefits have on average increased by 1.7 pct. annually, even when the subdued regulation is taken into account. In comparison, consumer prices have on average grown by 1.2 pct. a year, cf. table 1.
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Table 1 Regulation of benefits
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Source: Danish Employers’ Confederation, Statistics Denmark and own calculations. |
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Up until 2019, up to 0.3 percentage points of the annual regulation (before subdued regulation) was placed in the Rate Adjustment Pool (‘satspulje’) if wage increases exceeded 2.0 percent. The funds were earmarked the most vulnerable groups in society as the homeless, people suffering from mental disorders as well as vulnerable children and young adults etc.
As a result of the 2018 agreement on new regulation of public pensions and mandatory pension savings scheme for social transfer recipients, the Rate Adjustment Pool is abolished, and instead most benefit recipients will get a mandatory pension saving to ensure a sufficient income in later life. Pensioners will no longer contribute to the Rate Adjustment Pool, but will instead gain the full wage increase rate when pensions are regulated.
Consolidated reporting on the Code.
With reference to its previous conclusions, the Committee notes that the Government supports the work done by the ILO to simplify the reporting and to reduce the workload and is doing its best to provide required data and calculations, to check data and to specify sources of statistics. The Committee reminds the Government that it can fulfil its future reporting obligations under Article 74 of the Code and related ILO Conventions by reviewing and updating the consolidated report on these instruments prepared by the ILO.
Answer:
The Ministry of Employment hopes at a later stage to take advantage of the consolidated reporting between the Code and ILO-C102 and thanks for being reminded of this opportunity.