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Early retirement and work

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Can you work when you're on early retirement?

You can work when you're on early retirement, but you need to be aware of a number of conditions.

Read about the conditions you need to be aware of if you want to receive early retirement and work at the same time.

Can I have paid work? 

The rules for early retirement and work are relatively simple. You can work as much as you want while on early retirement. Your working hours will be deducted from your early retirement hours, so for every hour you work, one hour of early retirement is deducted. The work can be performed in the Kingdom of Denmark (Denmark, Greenland and the Faroe Islands) or in another EEA country.

If you have voluntary unpaid work

In some cases, you may be able to participate in voluntary unpaid activities without limitations or deductions. Contact Min A-kasse to learn more about the rules.

How and when do I get my early retirement pension?

Early retirement pay is paid monthly. We can only pay out a minimum of 14.8 hours per month. This means that if you work 145.53 hours or more (full-time insured) in a month, you cannot receive early retirement benefits. In this way, early retirement and work affect each other.

Easy deduction

What is a soft deduction?

If you as an early retirement recipient have an hourly wage corresponding to the unemployment insurance fund's conversion rate (DKK 277.76 in 2024) or less, you have the opportunity for greater financial benefit by working. The deduction for the first DKK 43,628 in earned income per year will be relaxed.

This means that if you have verifiable work, your income will be converted at the unemployment insurance fund's conversion rate for the first DKK 43,628. After that, your hours will be offset 1:1.
(Controllable work means that your employer can keep track of your working hours or pays you for a number of hours).

If your hourly wage is less than the applicable low hourly conversion rate (136.81 DKK in 2024), your hourly wage will be set at the higher rate and then converted using the box conversion rate.

Pay attention to your working hours

If you make use of the flexible deduction, you cannot receive early retirement benefits if you work more than 128 hours per month.

Here you can see examples of how the soft deduction is calculated:

Example of an example

If you work 80 hours per month and receive an hourly wage of DKK 150, your income = DKK 12,000.

The income of DKK 12,000 must be divided by the conversion rate of 277.76 = 43.20 hours deduction in early retirement pay for this month, instead of 80 hours.

You will then receive early retirement pay for 160.33-43.20 = 117.13 hours.

If you work 128 hours or more in a month, you cannot receive early retirement pay for that month.

Example of an example 

If you work 135 hours per month and receive an hourly wage of DKK 150, your income = DKK 20,250.

In this case, the unemployment insurance fund cannot pay out early retirement pay up to the 160.33 hours, as the actual hours before conversion were 135 hours - more than 128 hours.

When you no longer qualify for reduced deductions because you have reached the income limit, you can receive early retirement if you have worked up to 145.53 hours per month.

Self-employment and early retirement

If you have or want to be self-employed

You may be allowed to continue or start a self-employed business as a second job, but the hours will be deducted from your early retirement pension.

Income deducted in early retirement

What is deducted from early retirement?

Holiday allowance and paid vacation will result in deductions for the days you take vacation. If you move abroad or for some other reason receive a lump sum holiday allowance without taking your vacation, it will be deducted from your early retirement pension at the time of payment.

If your holiday allowance or salary during the holiday period is less than the deduction in early retirement, you can get the difference paid out as early retirement.

If you take vacation in an employment relationship, you can have your vacation allowance converted from days to hours and receive early retirement with deductions for the calculated hours.

There are also a number of other rules for early retirement and work where income is deducted from the early retirement pension.

It applies:

  • Salary, availability pay, etc. for a period during which no work is performed and benefits in lieu of work.
  • Severance pay paid in lieu of the correct notice period by the employer.
  • Waiting money and deferred pensions.
  • Income from civil representation and public and private duties that Min A-kasse does not consider to be work.
  • Revenue from the reissue, restoration and other forms of reuse of books, photographs, plays and films etc.
  • Scholarships.
Income that does not affect early retirement

Income that does not affect early retirement

  • License fees, library fees, Koda/Gramex fees and similar
  • Survivor assistance according to chapter 10a of the Active Social Policy Act
  • Compensation, including compensation under the Act on Insurance against Consequences of Industrial Injuries
  • War damage compensation, interest payments to victims of the occupation, honorary gifts and lifelong benefits on the Finance Act for artists and their survivors
  • Early retirement according to the Danish Salaried Employees Act, severance pay according to chapter 6 of the Danish Civil Servants' Pension Act, compensation for unfair dismissal according to section 4(3) of the main agreement and section 2b etc. of the Danish Salaried Employees Act, severance pay according to section 2a of the Danish Salaried Employees Act or compensation according to the Equal Treatment Act
  • Income from the sale of a business or real estate
  • Leasehold tax
  • Income from rentals that cannot be considered commercial and profits from your own home.
  • Interest, dividends and similar, inheritance, gifts, gains and alimony
  • Disability benefit
  • Disability pensions
  • Frailty pension.
Healthcare professionals on early retirement

Are you a healthcare professional?

On June 1, 2023, the Danish Parliament adopted a legislative amendment which means that if you are an early retirement pensioner and employed in the healthcare sector, your early retirement pension will not be offset (however, there are differences in the offsetting rules depending on whether you were employed before or after January 1, 2023).

The law came into force on July 1, 2023, but it has effect back from January 1, 2023. This means that as an early retirement pensioner, you will exceptionally and temporarily be exempt from offsetting your early retirement pension for your work in the public and private healthcare system in the period January 1, 2023 to December 31, 2024.

If you were employed in the healthcare sector before January 1, 2023, you will not be deducted from your early retirement pension for additional work (overtime). This means that you will be deducted from your early retirement pension for the hours you are normally employed for, but not for any overtime you may have worked.

If you are employed in the healthcare sector after January 1, 2023, you will not be compensated for any of your working hours - whether it's your regular hours or overtime.

How you are specifically exempted from the set-off

You must get your employer to fill out an employer declaration. You can find the declaration in two places: at star.dk and at Borger.dk. Once your employer has filled out the form, send it to us in Self Service.

Consequences for your tax-free premium

What you are paid in early retirement has an impact on your accrual of tax-free premiums. When you are not deducted from your early retirement pension for all your work and instead receive more in early retirement, the number of tax-free premium portions may be smaller.

Read more about tax-free premiums.

Changes in the employment relationship

If there are any changes in your employment - for example, if you get a new or different job function - we need a new declaration from your employer. The same applies if you get a completely new job.

Do you need advice on the early retirement scheme?
We are ready to help you

Call us on +45 70 12 37 82 or write to us via Self Service