ATP Pension Explained
ATP (Arbejdsmarkedets Tillægspension) is Denmark’s mandatory supplementary pension – 99 DKK/month deducted from your salary, plus 198 DKK from your employer. It’s small, it’s automatic, and it’s yours. Here’s what it actually means for you, including how to get it back if you leave Denmark.
Overview
ATP is a small, mandatory pension that every employee in Denmark pays into. It’s separate from your employer pension (which is typically much larger). ATP is administered by a single national fund – ATP Livslang Pension – and pays out a guaranteed lifelong pension when you reach retirement age.
The amounts are modest – don’t confuse ATP with your main pension. But it’s guaranteed, inflation-linked, and can be claimed as a lump sum if you leave Denmark permanently.
What is ATP?
- Full name: Arbejdsmarkedets Tillægspension (Labour Market Supplementary Pension)
- Mandatory: All employees working 9+ hours/week automatically contribute
- Fixed contribution: Not percentage-based like employer pension – a flat monthly amount
- Managed by: ATP, a non-profit organisation. One of Denmark’s largest investors.
- Payout: Lifelong monthly pension from retirement age (folkepensionsalder)
What you pay
ATP contributions are based on working hours, not salary:
| Monthly Hours | Your Share (⅓) | Employer (⅔) | Total |
|---|---|---|---|
| 117+ hours (full-time) | 99.00 DKK | 198.00 DKK | 297.00 DKK |
| 78-116 hours | 66.00 DKK | 132.00 DKK | 198.00 DKK |
| 39-77 hours | 33.00 DKK | 66.00 DKK | 99.00 DKK |
| <39 hours | No ATP | – | – |
Your 99 DKK/month is deducted from your salary (visible on your lønseddel). The employer pays 198 DKK on top – this is not deducted from your salary.
Employer’s share
Your employer pays ⅔ of the total ATP contribution (198 DKK/month for full-time). This is a legal obligation – it’s not negotiable and doesn’t appear on your payslip as a deduction. It’s an additional cost to your employer beyond your salary.
What you’ll get back
ATP pays a lifelong monthly pension from your retirement age (currently being raised to 68-69 depending on your birth year):
- Amount depends on: How many years you contributed and when you contributed (older contributions are worth more due to higher interest rates at the time)
- Full career in Denmark (40+ years): ~26,500 DKK/year (~2,200 DKK/month)
- 10 years of contributions: ~6,600 DKK/year (~550 DKK/month)
- 5 years of contributions: ~3,300 DKK/year (~275 DKK/month)
- Lifelong: Paid until death. Not a lump sum at retirement (unless you claim refund – see below).
- Guaranteed: ATP’s payout is not dependent on stock market performance. The guaranteed portion is fixed.
Check your projected ATP payout at borger.dk/pension or pensionsinfo.dk.
How to check your ATP balance
- Go to pensionsinfo.dk
- Log in with MitID
- Your ATP balance and projected pension are displayed alongside your employer pension
- Alternatively: borger.dk → Pension → ATP Livslang Pension
Leaving Denmark
If you leave Denmark permanently (deregister your CPR address), you have two options for your ATP:
- Leave it in ATP and collect the pension at retirement age (even from abroad). ATP will pay to a foreign bank account.
- Apply for a refund (udbetaling af ATP) if you meet certain conditions – see below.
ATP refund when leaving
You may be able to get your ATP contributions back as a lump sum if:
- You’ve permanently left Denmark (deregistered from CPR)
- You’re moving to a non-EU/EEA country (EU citizens generally cannot get a refund – the pension follows EU coordination rules)
- Your projected annual ATP pension is below a minimum threshold (~3,300 DKK/year as of 2026)
- You’re at least 5 years from retirement age
Tax on refund: The refund is taxed at ~40% (combined AM-bidrag + income tax). So if your ATP balance is 30,000 DKK, you’ll receive approximately 18,000 DKK after tax.
If you’re an EU citizen moving to another EU country, ATP pension is coordinated under EU social security regulation (EC 883/2004). Your ATP rights are preserved and will be paid at retirement. You cannot get a refund. This is true even if the amount is very small.
If you die before retirement
ATP has a death benefit (ATP’s Dødsfaldsydelse) for surviving spouses/partners and children:
- Spouse/cohabiting partner: One-time payment of ~50,000 DKK (approximate, depends on your contributions)
- Children under 21: One-time payment per child
- If no surviving spouse/children: ATP balance is not paid to estate – it remains in the fund
ATP vs employer pension
| ATP | Employer Pension | |
|---|---|---|
| Mandatory? | Yes (all employees 9+ hrs/wk) | Usually (depends on contract/collective agreement) |
| Your contribution | 99 DKK/month (fixed) | 4-5% of salary |
| Employer contribution | 198 DKK/month (fixed) | 8-15% of salary |
| Monthly total (45K salary) | 297 DKK | 5,400-9,000 DKK |
| Managed by | ATP (single fund) | PFA, Danica, Velliv, etc. |
| Payout type | Guaranteed lifelong pension | Depends on investment returns |
| Refund if leaving DK | Possible (non-EU, conditions apply) | Possible (conditions apply) |
Key takeaway: ATP is the small mandatory one (coffee money in retirement). Employer pension is the significant one (potentially 15-30% of your final salary). Both are separate from folkepension (the state pension, ~7,100 DKK/month base rate).
Common mistakes
Confusing ATP with employer pension
ATP is 99 DKK/month from your salary. Your employer pension is 4-5% of your gross salary (much more). When people say”Danish pension is good,” they usually mean the combination of all three: ATP + employer pension + folkepension.
Forgetting about ATP when leaving Denmark
If you leave without claiming a refund (and you’re eligible), the money sits in ATP until retirement. It’s not lost – but you may prefer the lump sum. Check your eligibility before departing. See the pension refund guide.
Not knowing the 99 DKK is on your payslip
Look for”ATP” on your lønseddel. It’s a small line, easy to miss. It’s after AM-bidrag. See the payslip guide for the full breakdown.
Questions and answers
Can I opt out of ATP?
No. ATP is mandatory for all employees working 9+ hours per week. There’s no opt-out mechanism.
Does ATP count toward the Positive List salary threshold for work permits?
No – the Pay Limit and Positive List thresholds are based on salary only, not total compensation. ATP and employer pension are not included in the calculation.
Can I contribute extra to ATP?
No – ATP contributions are fixed by law. If you want to save more for retirement, increase your employer pension contributions or invest separately.
What happens to ATP if I become self-employed in Denmark?
Self-employed people can voluntarily contribute to ATP, but it’s not mandatory. Most freelancers skip it and invest through their own pension or investment accounts instead.