efterlønsløn

Efterlønsløn refers to the payment received by individuals in Denmark who have opted for the efterlønsordning, a voluntary early retirement scheme. This scheme allows eligible individuals to retire from the workforce before reaching the standard retirement age, typically between the ages of 60 and 64. The efterlønsordning is financed through contributions from employees and employers, as well as government subsidies.

The amount of efterlønsløn is calculated based on the individual's previous earnings and their contribution history to the efterlønsordning. It is generally a percentage of their former income, designed to provide a financial safety net during their early retirement years. The specific amount can vary and is subject to rules set by the Danish state, including potential deductions if the recipient engages in certain types of work or earns additional income.

To be eligible for efterløn, individuals must meet specific criteria related to their employment history, contributions to unemployment insurance funds, and residency in Denmark. The efterlønsordning is intended to offer flexibility in retirement planning and to help manage the transition from full-time employment to retirement. It is administered by the state and specific rules and regulations govern its operation and the calculation of efterlønsløn.