What is the Typical Income in Denmark?

Introduction

Denmark has become a popular destination for emigrants seeking work due to the country's high average salary, which is one of the highest in Europe. Although living in Scandinavia can be expensive, the Danish salaries are sufficient to cover all expenses and provide convenience. Those with specific trades or skills are highly sought after in the Danish labor market, and can expect above-average pay, good working conditions, and the same rights and privileges as Danish citizens.

If you're curious about the average salary in Denmark, where Danish salaries rank in comparison to other European countries, the highest-paid professions in Denmark, and how the average salary compares to the cost of living in Denmark, this guide will answer these and other related questions. Enjoy reading!

Average salary in Denmark

Denmark is renowned for its liberal economic policies that have created numerous opportunities for economic migrants from the European Economic Area and the European Union. The average salary in Denmark varies between DKK 20,000 and 40,000 per month, depending on the profession, Danish language proficiency, age, and employee competence. The lowest national salary in Denmark is DKK 11,000 per month.

Furthermore, the cost of living in Denmark is not high compared to the Danish salary, and the state has a well-developed pro-social policy that provides Danish workers with various privileges, such as accommodation, food, and commuting to work. In addition, many services, such as telephone and internet subscriptions, are relatively inexpensive.

In Denmark, there is no fixed minimum wage, except for production workers or drivers engaged in combined transport and cabotage, whose hourly rates are regulated. All working conditions, including wages, vacations, and working hours, are determined through negotiations between the Trade Union Federation and the Danish Employers' Conference.

The average Danish salary vs. salary levels using selected professions as an example

Denmark, as one of the Scandinavian countries, is among the ten wealthiest European nations. Its capital, Copenhagen, was named the most financially comfortable place to live in Europe in 2016. The Kingdom of Denmark is well-known for its excellent social policies, high salaries, and the equal rights it provides to all citizens.

The Danish salary is determined by various factors such as the employee's qualifications, profession, age, and language skills. Denmark does not have a fixed minimum wage per hour, except for a few exceptions, and the weekly working hours are shorter due to family-friendly policies. The average salary in Denmark ranges from DKK 20,000 to 40,000 per month, which is between PLN 12,000 and 25,000. The minimum salary in Denmark is around DKK 13,000 per month and is usually paid to workers who do not have knowledge of Danish, German, or English languages and the required qualifications, which is approximately DKK 110 gross per hour or PLN 10,000 gross per hour. In Copenhagen, the lowest salary is approximately DKK 15,000 per month, and the average salary is approximately DKK 20,000 per month.

How much can you earn on average, working in Denmark?

1. Farm worker: from 75 DKK per hour
2. Greenhouse worker: from 80 DKK per hour
3. Farm worker: approx. 110 DKK per hour
4. Cleaning: 110-130 DKK per hour; in Copenhagen, about 15,000 DKK per month
5. Production worker: from 127 DKK per hour (top-down minimum wage, effective March 1, 2022)
6. Greenhouse worker: DKK 130-140 per hour
7. Glazier: approx. 150 DKK per hour
8. Construction worker: 150-160 DKK per hour
9. Warehouse worker: 150-170 DKK per hour
10. Locksmith: approx. 160 DKK per hour
11. Car mechanic and CNC operator: 160-170 DKK per hour
12. Driver performing combined and cabotage transport: 163 DKK per hour (minimum wage set top-down)
13. Welder: 170-220 DKK per hour
14. Assembler: 170-190 DKK per hour
15. Roofer: 175-180 DKK per hour
16. Electrician and plumber: 180-190 DKK per hour
17. Cashier: approx. DKK 14,000 per month
18. Manager: approx. DKK 14,700 per month
19. Secretary: 26,000-27,500 DKK per month
20. Medical staff: approx. 18,500 DKK per month
21. IT specialist: DKK 25,000-40,000 per month
22. Doctors and lawyers: from 38,000 DKK up to 70,000 DKK per month.

Furthermore, residents of Denmark can enjoy several social benefits, which include:

• Unemployment benefit: Up to DKK 650 per day.
• Family allowance: From 966 to 4,653 DKK per quarter, depending on the age of the child.
• Maternity benefit: Up to DKK 3,113 per week.

In Denmark, state-funded internships are highly popular, and they are available at various institutions, including research centers, museums, farms, energy corporations, art institutes, architecture institutes, science institutes, archaeology institutes, and oil companies. These internships are targeted towards people aged between 18 and 35 years, who have completed their diploma at least a year and a half before starting their internship and possess knowledge of one of the foreign languages, such as Danish, English, German, Swedish, or Norwegian.

Average salary in Denmark vs. cost of living

Denmark does not have a centralized regulation that governs labor laws, which means that factors such as salary, retirement age, vacation, termination conditions, length of the working day, overtime, or working hours are not predetermined. Instead, these factors are decided through negotiations between the employer and the Trade Union Federation and are set out in the employment contract.

Consequently, the average Danish salary is the outcome of the individual agreement between the employer and the Trade Union Federation. In comparison to the cost of living, the average Danish salary is sufficient to maintain a high standard of living.

Listed below are some examples of prices for various products and services in Denmark:

• Renting a one-bedroom apartment outside Copenhagen costs around 5,000 DKK per month. Prices are generally higher in the capital city.
• Renting a two-room apartment outside the capital costs between 7,000 and 11,000 DKK per month. A deposit of at least three months' rent is typically required.
• Rent for a three-room apartment ranges from 12,000 to 16,000 DKK per month.
• Rent for student apartments is around 4,000 to 5,000 DKK per month.
• Telephone subscription costs about 43 DKK per month.
• Internet subscription costs around 200 DKK per month.
• Taxi fare starts at around 50 DKK, with an additional 15 DKK per km at the regular fare.
• Bicycle rental costs between 300 and 600 DKK per day.
• A monthly public transportation ticket costs around 1,300 DKK.
• A ticket for all metro routes in Copenhagen costs around 36 DKK.
• The cost of a liter of gasoline is about 12-14 DKK.
• Tomatoes cost about 10 DKK per kilo, while one banana costs around 3 DKK.
• A carton of milk costs around 8-12 DKK, and a half-liter bottle of water costs between 3-10 DKK.
• Potatoes cost around 10-20 DKK per kilogram, a loaf of bread costs between 16-18 DKK, 12 eggs cost around 20-30 DKK, and a couple of slices of ham cost around 10-12 DKK.
• A slice of pizza in a restaurant costs about 50 DKK, while a fast food burger costs around 15 DKK. A cup of drink from a vending machine costs around 7 DKK.
• A dish at an inexpensive restaurant costs around 125 DKK, and a whole dinner at a more expensive restaurant can cost around 300 DKK.
• A monthly pass to the gym costs between 150-350 DKK, while a ticket to the cinema costs about 90-140 DKK. The rental of a tennis court costs around 100-250 DKK.

A number of grocery and non-grocery stores such as Aldi, Rema 1000, Lidl, and Fakta are present in Denmark. It is evident from the previous information that the average salary in Denmark allows for a good standard of living, even without knowledge of a foreign language. This is why more and more foreigners are choosing to emigrate to Denmark for work purposes.

Summary

Denmark is a country that values free market and free competition, treating both domestic and foreign citizens equally. Those who choose to work in Denmark, particularly those with the right qualifications and language skills, can usually expect to earn significantly higher wages compared to their earnings in their country of origin. Even those with the lowest national salary can enjoy a comfortable life and build up their savings. Furthermore, all Danish workers are eligible for benefits and advantages extended by the Danish government to members of the EU and EEA.

FAQ

1. The average salary in Denmark is between 20 and 40 thousand DKK gross per month.
2. There is no top-down minimum wage per hour in Denmark, but the lowest national wage is usually DKK 110 gross per hour.
3. Salary in Denmark is determined by a number of factors such as foreign language skills, age, and incompetence.
4. Without knowledge of Danish, it is possible to get a well-paid job, especially if one speaks German or English.
5. The working day in Denmark is usually between 6 and 6.5 hours, up to 37 hours per week, with overtime pay required for any extra work.
6. When working in Denmark, one must settle with the tax office in their country of origin once a year.
7. Up to 2.5% of the pension is due for each year worked in Denmark.
8. To find a job in Denmark, one can call a hotline, use job databases, or search the Public Employment Service job offers.
9. Non-Danish citizens must obtain a residence registration certificate if they plan to stay in Denmark for more than 3 months.
10. Citizens of Switzerland, EU or EEA countries are entitled to apply for a residence registration certificate as soon as they start working.
11. Accommodation for rent can be found from private landlords or Danish housing cooperatives.
12. When living and working in Denmark, one has unlimited tax liability and must file a tax return with the Danish tax authorities every year by May 1.

In Denmark, both employers and employees are required to pay income tax to SKAT, the Danish tax authority. The income tax is composed of a flat municipal tax and a progressive tax to the state. The amount of income tax payable depends on the annual income earned by the employee.

Each year, a tax-free rate is set at 10.10% on gross wages in Denmark. However, income tax percentage rates vary and are not fixed.

• 8% – income below DKK 50,217.
• 2% – income between DKK 50,217 and DKK 558,043.
• 5% – income above DKK 558,043.

Voluntary church tax averages 0.92 percent.