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Senior economist at SME Denmark Thomas Gress believes that there is a need for uniform rules for granting disability pensions, which vary significantly between municipalities.
SMVdanmark

SME Denmark intervenes in the debate on early retirement

New analysis reveals large municipal differences in the allocation of disability pension between Danes and non-Western immigrants.
23. JAN 2025 11.41
Arbejdsmarked
Politik

A new analysis from SMVdanmark shows significant differences in the allocation of disability pensions between citizens of Danish origin and people with a non-Western immigrant background. According to the analysis, non-Western immigrants are awarded disability pensions on average 1.5 times as often as Danes in the age group 18-59. In larger urban municipalities such as Copenhagen and Aarhus, the difference is even more pronounced, where non-Western immigrants receive disability pensions up to three times as often. This is what SMVdanmark writes in a press release.

- The large and immediately inexplicable municipal differences in the awards indicate that there is a need for a more uniform approach. It is crucial that all citizens are treated fairly and according to the same criteria, regardless of where in the country they live. It must not be your postal code that determines whether you are awarded disability pension or not, says Thomas Gress, senior economist at SMVdanmark.  

SMVdanmark points out in the analysis that differences in socio-economic factors and demographic conditions can only partially explain the large variations between the municipalities. In larger cities such as Copenhagen, Aarhus and Odense, the access index for non-Western immigrants is between 207 and 290, which means that this group is granted disability pension 2.1-2.9 times as often as people of Danish origin.

In contrast to the large urban municipalities, the analysis shows that the picture is different in several smaller municipalities, especially in North and West Jutland. Here, it is citizens of Danish origin who are granted disability pension to a greater extent. In municipalities such as Ringkøbing-Skjern, Brønderslev and Vesthimmerland, people with a Danish background are awarded disability pension more often than non-Western immigrants.  

In a total of 11 municipalities, including Fanø, Læsø and Samsø, there were no non-Western immigrants receiving disability pension at all in 2024. However, SMVdanmark emphasizes that in several cases this is due to the fact that there are very few or no non-Western immigrants in these areas.  

SMVdanmark proposes a reform that will ensure more uniform rules for the award of disability pension across municipalities. The organization recommends, among other things, that responsibility for the award be moved from the municipalities to a national authority to ensure uniform and professional case processing.  

- We need to look at how we can create incentives for more people to become part of the labor market. This will benefit both the citizens themselves, our companies and society as a whole, says Thomas Gress.  

SME Denmark also recommends a reform of the structure of benefits. The organization suggests that coverage rates do not exceed 90 percent of previous wage income, but at the same time ensure a decent minimum rate.  

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https://www.doi.dk/en/solenergi/artikel/smvdanmark-blander-sig-i-debatten-om-foertidspension

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