Fiscal Analysis

Denmark: What Labour Market Exclusion Costs the State

What it costs the state in disability and sickness benefits when people are kept out of work, compared across European countries.

€13.6bn
Spent on disability and sickness benefits
3.4%
Benefit Expenditure As share of GDP

Country Profile

As share of GDP3.4% of GDP

Direct benefit payments

Statistics Denmark, table ESSPROS1 (2024) — disability cash benefits (excluding private insurance pensions) plus sygedagpenge · 2024

€13.6bn

→ Disability pension

Statistics Denmark, table ESSPROS1 (2024) — førtidspension incl. supplements (DKK 54.4bn) · 2024

€7.3bn

→ Sickness benefit

Statistics Denmark, table ESSPROS1 (2024) — sygedagpenge (DKK 14.6bn) · 2024

€2.0bn

Local currency: DKK 101.8bn

Per working-age adult

€3,598

Context

Covers førtidspension (early disability pension) and other public disability cash benefits, plus sygedagpenge (sickness benefit). Disability pensions paid by private pension funds and insurers (DKK 9.0bn) are excluded.

Methodology

Public cash benefits for disability and sickness, 2024. Lost tax revenue, healthcare, social care and employment-programme costs are not included. Converted at the Eurostat 2024 average rate (DKK 7.4589 per EUR). Share of GDP uses Eurostat GDP for 2024; per working-age adult means per person aged 15–64 (Eurostat, 1 January 2024).

In Practice

A real organisation putting this into practice.

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