Understand your payslip
Payslips can look very different, depending on where you are employed. Here, you can find explanations of the most common information shown on payslips.
The terms of your pay and employment are largely determined by labour agreements between your union and your employer. If there is no labour agreement in place at a workplace, the legal minimum requirements and your negotiations with your employer determine the terms of your pay and pension scheme in particular.
Here is an example of what a payslip looks like.
1. CVR no.
A CVR number is like a personal ID number, but for your employer. You can look up any CVR number at cvr.dk to find information about the business.
2. Employee number
Many employers use employee numbers to anonymise sensitive information from their payroll systems.
3. Pay period
The period for which this payslip shows your pay.
4. Position type / pay grade
Position types, pay grades, and similar concepts are used to create logical groups in the payroll system based on labour agreements and professions.
There may be a fixed base pay rate, or a graded scheme with raises. The time at which these raises take effect is tied to your seniority date.
5. Position name
This may be a standard position name, and it may be different from the title you use in (e.g.) Outlook.
6. Hire date
This may be the date you were hired for your current position, or the date you were first hired by your company. In some payroll systems, dates of raises are also shown.
This date may be relevant for determining the length of your termination warning period and your anniversary date.
7. Group life insurance plan
A group life insurance plan gives your family financial security in the event that you develop a serious illness, become disabled, or pass away. Many employers pay for such a plan, either through a pension scheme or directly.
You and your employer will split the expense: your employer pays for the insurance itself, and you pay the tax on the insurance.
ATP stands for arbejdsmarkedets tillægspension, a supplementary pension scheme.
ATP is a mandatory pension scheme under the supervision of the Danish Financial Supervisory Authority. It was established by the Folketing (the Danish parliament) in 1964.
The ATP rate for 1 to 38 hours of work per month is 0 DKK. If you work between 39 and 77 hours, your ATP contribution is 31.55 DKK. If you work between 78 and 116 hours, your ATP contribution is 63.10 DKK. If you work 117 or more hours per month, your ATP contribution is 94.65 DKK.
Your employer's contribution is double the amount of yours, so the total amount paid in to ATP on your behalf is up to 3 x 94.65 DKK per month.
9. AM contribution
The AM contribution (arbejdsmarkedsbidrag, "labour market contribution") is a gross tax of 8% of your income. Anyone who earns an income must pay it, regardless of their tax situation.
10. Tax deductions
If you use your primary tax card with your employer (this is your own choice), you get a tax deduction.
11. Deduction percentage
The deduction percentage is a tax deduction based on your preliminary registration. You can check it and make corrections by logging in to skat.dk with your NemID.
In 2019, a new holiday act came into effect, changing the rules for how you accrue holiday time.
13. Holiday bonus
The holiday bonus (ferietillæg) is also referred to as special holiday compensation (særlig feriegodtgørelse). The law says that you get holiday compensation of at least 1% in any position where you have paid holiday time. However, many receive more than this. Those who are paid hourly receive holiday compensation (feriegodtgørelse) instead of a holiday bonus.
As a rule, your holiday bonus is paid out with your regular pay in April or May.
If you are paid hourly, you receive 12.5% in holiday compensation, which will be paid into your holiday account. You can find it at borger.dk.
14. Pension contribution
The pension contribution is your pension percentage for the conditions of your employment. The size of the pension contribution can vary greatly depending on your labour agreement or your agreement with your employer, if you aren't employed under a labour agreement.
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