New year – new employment related rates

As we start the new year employers should be aware of new rates that apply both in connection with taxable rates, other employee benefits and work and residence benefits. This article sets out a summary of the main provisions.

Mileage deduction

In 2025, the mileage deduction for an employee’s travel to and from work will remain unchanged at DKK 2.23 per km and still applies to kilometers driven by the employee between 25 and 120 km.

The rate for driving more than 120 kilometers remains unchanged at DKK 1.12.

Tax-free mileage allowance

Employees are entitled to mileage allowance if they make their own car available for work purposes.

The rate per kilometer is increased to DKK 3.81 (from DKK 3.79 in 2024) for employees driving less than 20,000 km per annum.

The rate for employees who drive more than 20,000 km remains unchanged from the 2024 rate at DKK 2.23

An employee can also receive mileage allowance if the employee rides his or her own bicycle, moped, 45-moped, scooter or electric scooter at the rate of DKK 0.63 per km, which is an increase of 1 øre per km. (0.62 in 2024).

It should be noted that an employee cannot claim both mileage allowance and mileage deduction.

ATP-contribution

The contribution remains unchanged at DKK 297 for full-time employees.

For employees covered by ‘Unknown working hours’ ATP scheme the contribution is adjusted to DKK 246.84 for men (DKK 236.89 in 2024) and DKK 222.92 for women (DKK 213.93 in 2024).

Free car (company car)

Employees who have a company car are taxed in connection with the personal use of the company car.

From 1 January 2025, there is only one rate for personal use of the car which applies regardless of whether the car’s value is above or below DKK 300,000. The rate is 22.5% of the car’s value.

G-days (days of unemployment)

Half unemployment benefit allowance increases to DKK 487 (DKK 470 in 2024), and full unemployment benefit allowance amounts to DKK 973 (DKK 940 in 2024).

Sickness benefits

The rate increases to DKK 4,865 per week (DKK 4,695 in 2024) , which corresponds to an hourly rate of DKK 131.49 (DKK 126.89 in 2024).

The de minimis limit for employee benefits

From 1 January 2025, the amount is increased to DKK 7,300 (DKK 7,000 in 2024). Thus, an employee is only taxed if the total value of the employee benefits from one or more employers exceeds this amount.

It should be noted that to be covered by the de minimis limit, employee benefits must have a direct connection with the work.

Free phone and internet

Employees will be taxed for the personal use of a company telephone. The tax value of personal use will be increased with effect from 1 January 2025 to DKK 3,300 per year, corresponding to DKK 275 per month (DKK 3,200 in 2024).

The same applies if the company pays for the employee’s internet connection.

However, if the employee receives both a company paid telephone and internet, the employee still only has to pay tax on a total of DKK 3,300.

Tax free private use of company computer

Employees do not have to pay tax on an employer-paid computer used for work purposes. This applies even if the employee takes the computer home.

Tablets (e.g. iPads) are considered computers for tax purposes and are therefore not taxable if they are for work purposes.

There is also no tax liability on usual computer accessories. Usual accessories include, for example, a computer monitor, software programs and a printer of regular size and standard.

Rates stipulated in collective agreements

In connection with the new year, employers should be aware of whether rates in the relevant collective bargaining agreements need to be adjusted. This could, for example, apply to SH savings, savings for the free choice scheme and payments to health insurance.

Generally, the above must not be updated until a new collective agreement enters into force. However, it depends entirely on the collective agreement in question, which is why it is a good idea for employers to keep up to date with the provisions of the CBA and the relevant dates for adjustments.

Work and residence permits – changes to pay limit and fees

Foreign nationals who have been offered work in Denmark can, depending on the circumstances, apply for a residence and work permit under the Pay Limit Schemes or the Fast Track Scheme. In this connection, it is a condition that the salary offered at least corresponds to the threshold amount for the scheme in question.

The limits for the above-mentioned schemes have been adjusted with effect from 1 January 2025.

The Pay Limit Scheme and the Fast Track Scheme’s Pay Limit Scheme salary level is increased to DKK 514,000. The  amount limit on the Supplementary Pay Limit Scheme and the Fast Track Scheme’s Supplementary Pay Limit Scheme will be increased to DKK 415,000.

You can read more about the Pay Limit Scheme and the Fast Track Scheme here.

From 1 January 2025, the fees for SIRI’s processing of applications for residence permits will decrease to DKK 6,055 for applications for residence permits based on work, and DKK 2,380 per family member for applications for residence permits for accompanying family.

Positive lists

The positive lists for people with a higher education and skilled workers list contains a list of the different  occupations where there is a shortage of qualified labour in Denmark. If a foreign national has been offered a position that appears on the relevant positive list, the foreign national can apply for a residence and work permit in Denmark pursuant to this scheme.

The positive lists have been updated as of 1 January 2025. This means that the positive list for people with a higher education now contains 162 positions, while the positive list for skilled workers now contains 48 positions.

This means that more positions have been added to the positive list for higher education, while the positive list for skilled workers contains fewer positions.

The lists are revised every six months and are thus republished with effect from 1 July 2025.

You can see the positive lists here.