Tax and wages
Denmark has a progressive tax system that helps to ensure that all citizens have equal access to a number of different services. .
When you move to Denmark to work and/or live, you must register with the tax authorities. Find more information about the tax registration here.
The more you earn in Denmark, the higher taxes you pay, and you make certain deductions to your income before your tax is calculated.
Find more information about the progressive tax system in Denmark and different types of taxes.
The labour market contribution is 8 %. However, this contribution is not included when calculating tax. Income in the form of holiday benefits, fees, bonuses, and commission is also considered salary income when calculating taxes, and the same goes for fringe benefits such as the value of a company car and telephone, free internet, employer-funded health care services, housing expenses, relocation costs, school fees, etc.
In Denmark pension savings are usually between 10-18% of your salary. Hereof you yourself pay 1/3 in pension contribution and your employer pays 2/3, but it may vary if you work in a public sector.
Your pension will still be available for you if you live abroad when it is due. For more information, read our page about pension in Denmark.