Denmark – Social security and tax changes 2024
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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-rate | Employer Contribution | Employee Contribution | Total Contribution |
|---|---|---|---|
| Min. 117 hours/month | DKK 198.00 | DKK 99.00 | DKK 297.00 |
| 78 - 116 hours/month | DKK 132.00 | DKK 66.00 | DKK 198.00 |
| 39 - 77 hours/month | DKK 66.00 | DKK 33.00 | DKK 99.00 |
| Under 39 hours/month | DKK 0.00 | DKK 0.00 | DKK 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 day | Deduction per km per day |
|---|---|
| 0 to 24 km | DKK 0.00 |
| 25 to 120 km | DKK 2.23 |
| More than 120 km | DKK 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:
| Allowance | Percentage | Maximum allowance | Minimum earnings |
|---|---|---|---|
| Employment Allowance | 10.65% | DKK 45,100.00 | DKK 423,474.00 |
| Job Allowance | 4.50% of income above DKK 216,100.00 | DKK 2,800.00 | DKK 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:
| Duration | Rate | Maximum amount |
|---|---|---|
| 15 years or less until state pension | 32% on contributions up to DKK 80,600.00 | DKK 25,792.00 |
| More than 15 years until state pension | 12% on contributions up to DKK 80,600.00 | DKK 9,672.00 |
Company car rates for 2024 are as follows
| Distance travelled per day | Rate for 2024 |
|---|---|
| Car value under DKK 300,000 | 23.5% |
| Car value above DKK 300,000 | 22% |
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 2024770.34 KB