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Everyone who earns a salary subject to labour market contributions or who earns a business profit automatically receives an employment allowance.

  • The maximum employment allowance is 10.65% or a maximum of DKK 45,600 in 2023 (10.65% or DKK 43,500 in 2022).

Everyone who earns a salary subject to labour market contributions or who earns a business profit automatically receives a job allowance also.

  • The job allowance is 4.50% of income over DKK 208,700 or a maximum of DKK 2,700 in 2023 (4.5%, DKK 202,700 and DKK 2,700 in 2022).

The employment and job allowances are calculated as a percentage of your income. However, there is an upper limit to the allowance you can claim.

Employment allowance
Year              %                       Maximum allowance, DKK Minimum amount of salary you need to earn to be entitled to the full allowance
2023 10.65 45,600 DKK 428,169
2022 10.65 43,500 DKK 408,451

 

Job allowance rate
Year  %  Maximum allowance, DKK Minimum amount of salary you need to earn to be entitled to the full allowance
2023 4.50% of income above DKK 208,700 2,700 DKK 268,700
2022 4.50%  of income above DKK 202,700 2,700 DKK 262,700

The allowances are calculated automatically on your salary (including labour market contributions (AM-bidrag)) or on your business profit, for example.

If you are a single parent and are entitled to and receive additional child allowance according to the Child Allowance Act, you will receive an additional employment allowance of maximum DKK 24,400 in 2023 (6.25%) (DKK 23,700 and 6.25% in 2022).

If you become a single parent

Udbetaling Danmark will inform the Dansih Tax Agency (Skattestyrelsen) if you become a single parent. This means that you will receive the additional allowance automatically. Udbetaling Danmark informs us on a quarterly basis, and once we have been informed, you will receive a new preliminary income assessment.

Please see our legal guide (in Danish) for further legal information.