Compared to other countries the direct salary in Denmark is high. After the subtraction of social contribution, labour marked contribution, the Danish salary level equals the salary level in other European countries like Belgium, Sweden and the Netherlands.
Collective salary in the public sector:
The salary varies, depending on whether the employee is employed in the private or in the public sector. The majority of the solutions in the public sector are covered by collective agreements, but with a growing opportunity for negotiating personal bonuses.
Individual pay in the private sector:
In the private sector an individual salary policy is common. The salary is negotiated with each employee and that’s why the role of the labor unions has decreased.
The local authorities, the employers’ associations and the labor units’ frequently public detailed salary statistics that can indicate the development in general pay level.
Denmark wants to be among the leading:
It is the plan of the Danish government to place Denmark among the leading countries what concerns knowledge and science. That’s why Denmark desires to attract highly qualified international scientists and researchers to both private industry and public research centers.
The government has taken a numerous amounts of initiative to improve the science level. There will be established a high technology fund that will contribute to developing the best work environment, so the researchers can achieve international recognition for their results.
Beneficial researcher scheme:
To attract more researchers, key employees’ and other highly qualified specialist to Denmark there was introduced a so called researcher scheme. Today researchers and other highly educated foreigners and Danes who have been working abroad for many years can be subject to 25 % gross taxation during 3 years. Today there are about 3000 persons who fulfill the conditions.
From 3 to 5 years for the researcher scheme:
Extension of the scheme from 3 to 5 years is now being negotiated. The gross taxation will though be increased to 33%, but still it will give an average tax relief for DKK 317.000 to those who will stay in Denmark for 5 years.
The most important preconditions:
The employee has not been subject to tax in Denmark during a period of 3 years prior to the employment in Denmark.
The monthly salary for key employees must be at least DKK 61,700 a month (2008), DKK 721.200 a year, after deduction of ATP payments, labour market contributions, special pension savings and any obligatory foreign social contributions. The salary level should ensure that only highly qualified employees who are difficult to recruit are taken in.
The candidate must become a subject for full tax liability in Denmark; it means that the person must move to Denmark.
The employee doesn’t participate, and has not participated, directly or indirectly, in the management, control or capital of the employer during the employment or during a period of 5 years prior to the employment.
What do you earn in Denmark?
The monthly pay is very different and depends on the qualifications of the employee and whether the employee is working in the private or public industry. In the private sector 40 % of all the top managers besides the basic salary are benefited with bonuses.
An IT project manager with about 7 years of experience earns DKK 40-45.000 a month + pension
A newly educated bank assistant earns about DKK 25-28.000 a month + pension.
The average salary for a sales manager depends on the size of the firm and varies between DKK 50-55.000 a month + pension.
Open end for the specialists:
For the key workers, researchers and professional sportsmen there is no monthly pay limit. The salary is based on the qualifications, responsibility and experience. Minimum pay is usually DKK 61.700, equals to the minimum pay to fulfill the conditions for the researcher scheme.
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