Jan 15, 2024 2 min read

Denmark – Social security and tax changes 2024

Changes in social security contribution

Effective from 1 January 2024, the Arbejdsmarkedets Tillægspension (ATP) contribution rates are revised for employees who are paid monthly.

A-rateEmployer ContributionEmployee ContributionTotal Contribution
Min. 117 hours/monthDKK 198.00DKK 99.00DKK 297.00
78 - 116 hours/monthDKK 132.00DKK 66.00DKK 198.00
39 - 77 hours/monthDKK 66.00DKK 33.00DKK 99.00
Under 39 hours/monthDKK 0.00DKK 0.00DKK 0.00

Changes in taxes

Effective from 1 January 2024, the following changes have been noted for tax.

The allowable deduction for transportation to and from work has been amended as follows:

Distance travelled per dayDeduction per km per day
0 to 24 kmDKK 0.00
25 to 120 kmDKK 2.23
More than 120 kmDKK 1.12
(DKK 2.23 in peripheral municipalities)

If an employee earns less than DKK 363,700 in 2024, they will be entitled to an additional deduction for transport between home and work up to DKK 15,400. It is reduced gradually for income between DKK 313,700 and DKK 363,700 in 2024.

Employment and Job Allowance deductions have been amended for 2024 as follows:

AllowancePercentageMaximum allowanceMinimum earnings
Employment Allowance10.65%DKK 45,100.00DKK 423,474.00
Job Allowance4.50% of income above DKK 216,100.00DKK 2,800.00DKK 278,322.00

Employment allowances for single parents have been amended to DKK 25,300 in 2024.

Additional pension contribution deductions are amended as follows:

DurationRateMaximum amount
15 years or less until state pension32% on contributions up to DKK 80,600.00DKK 25,792.00
More than 15 years until state pension12% on contributions up to DKK 80,600.00DKK 9,672.00

Company car rates for 2024 are as follows

Distance travelled per dayRate for 2024
Car value under DKK 300,00023.5%
Car value above DKK 300,00022%

Deduction for employment related expenses

The initial lower threshold for other deductions regarding employment related expenses has been amended to DKK 7,000.00 for 2024. This applies to but is not limited to home, telephone, health expenses and entertainment.

For benefits-in-kind, the threshold for internet, computer, or phones etc., paid or provided by employer, has been increased to DKK 3,200.00 for 2024.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

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Denmark – Social security and tax changes 2024

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