Understanding your paycheck from DataLøn
We’ve given the paycheck from DataLøn a makeover. For now, a paycheck from DataLøn is only available in Danish, so let’s guide you through the different entries and what they mean using the example of a bi-weekly paycheck below.
If in doubt about any of the terms related to Danish taxes, please visit the Danish Tax Agency’s website.
1. Pay period and payout
This shows the pay period and the date on which your salary will be available at your account. “Til udbetaling” refers to the DKK amount you will receive after taxes and other deductions.
2. Work hours
The total amount of work hours in the specified pay period.
3. Holiday-eligible salary
Your gross salary – meaning your total salary before taxes and other deductions. The salary has been calculated based on work hours and the wage rate.
4. Pension contributions
Your own contribution to your pension, which is typically calculated from your gross salary. Your employer’s pension contributions are shown in entry 11.
5. ATP contributions
“Arbejdsmarkedets Tillægspension” (ATP) is a legally required pension scheme in Denmark for all employees over the age of 16.
6. Employee benefit taxes
The total amount of your employee benefits will be taxed depending on the types of benefits you receive.
7. Labour market contributions (AM-bidrag)
Labour market contributions is an 8% tax paid by every wage-earner in Denmark.
8. A-tax
This is the tax you pay based on your primary income (after your tax deduction).
9. Tax deduction
Your personal tax deduction that is deducted from your income before your A-tax is calculated. Your tax deduction is calculated by SKAT and is based upon your preliminary income assessment.
10. Adjustment of benefits
Here, we compensate for the employee benefits that have been taxed, but that should not be included in your payment (see entry 6).
11. Pension
Your own as well as your employer’s pension contributions for the pay period in question. The total amount will be transferred to your pension account.
12. Holiday allowance
Your net holiday allowance for this wage period after A-tax and labour market contributions have been deducted.
13. Savings
If you have registered any savings (such as a voluntary savings account, SH payment or salary supplement for the abolition of Great Prayer Day), that part of your salary will be calculated here.
14. Holiday allowance
Here, you can see how many days of holiday you have earned and spent including any days of holiday transferred from previous holiday years.
15. Total savings
Here, you can see all of your savings for the current year. Your savings for this pay period is shown in entry 13.
16. Total balance
The total balance for the current year, accumulated for each pay period.