Salary in Denmark
If you work in Denmark, your salary depends on factors such as your sector, collective agreement, qualifications and pension. Here's what determines your pay and what to look for when comparing job offers.
How salaries are determined in Denmark
Several factors determine your salary in Denmark. Your pay depends, for example, on whether you work in the public or private sector. Pension contributions, salary supplements and employee benefits also affect the overall value of your employment package.
Salaries in the public sector
If you work in the Danish public sector, your salary is covered by a collective agreement negotiated between public employers and the relevant trade unions. The applicable agreement depends on whether you are employed by the state, a region or a municipality.
Your salary consists of a basic salary, which is determined centrally and is based on your seniority.
You may also receive additional salary supplements. These are negotiated locally and depend on your qualifications, responsibilities and job function.
In addition to your salary, your employer pays pension contributions. The contribution rate is determined by the applicable collective agreement.
Salaries in the private sector
If you work in the private sector, your salary is usually determined either:
- through individual salary negotiations with your employer, or
- by a collective agreement between your trade union and your employer.
Even if your workplace is covered by a collective agreement, you may still be able to negotiate parts of your salary individually.
Pension
The Danish and Swedish pension systems differ significantly.
If your salary is negotiated individually, discussions often focus on your gross salary. However, not all employers offer an occupational pension scheme.
Before accepting a job offer, make sure you understand:
- whether your employer pays pension contributions
- how much is contributed
- whether you need to make additional pension contributions yourself.
This will help you assess the overall value of your salary package.
Consider your total compensation
When comparing job offers, look beyond your monthly salary. Consider the total compensation package, including pension contributions, salary supplements and employee benefits.
Benefits may include:
- extra paid holiday (all employees are entitled to at least 5 weeks of paid holiday, but many employers also offer additional paid leave, known as feriefridage)
- private health insurance
- mobile phone and/or internet
- lunch scheme.
Compare salary levels in Denmark
You can find information about collective agreements on the websites of the relevant trade unions.
To compare salary levels, you can also use Jobindex, Denmark's largest job portal. Their salary statistics allow you to compare salaries based on job title, location, age, education and experience.
Statistics Denmark also publishes official earnings statistics.
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