Employment at CBS
Get an overview of salary, tax and pension at CBS. Read about allowances, researcher taxation and pension schemes so you know your options.
Salary and collective agreement
Collective agreement
As an academic and/or researcher employed at CBS, you automatically fall under the Collective Agreement for Academics in the (Danish) State. Your basic salary, number of holidays, pension and much more is determined by this agreement. The Danish labour market is characterised by strong trade unions and collective agreements, termed the Danish Model. It means that the general terms of employment are not regulated by the Government but by collective agreements made by the trade unions and employer associations.
Read more about the Danish Model and work culture on International Employees
Salary
Your salary consists of a base salary determined by your seniority. In addition, you receive a centrally agreed allowance based on your job title (e.g. research assistant, PhD fellow, postdoc, associate professor, professor etc.)
Salary allowances
Alongside the base salary and the allowances linked to the job category, the collective agreement and the university’s salary policy make it possible to award additional allowances through local agreements and negotiations. The most common allowances are:
- Qualification allowance: based on academic and personal qualifications and the quality of the work, which is normally awarded as a permanent allowance
- Special function allowance: which is normally awarded for specific functions linked to particular tasks
- One-off payment: awarded as recognition for a special contribution.
Salary negotiations
You are entitled to a salary negotiation when you take up a position at CBS. In addition, all employees have the right to negotiate their salary once a year or when taking on a new position or function at CBS.
Since salaries are determined as part of the collective agreement, this means that the union representative negotiates salaries on behalf of the employees. This also applies to the annual negotiations regarding potential allowances.
The outcome will, however, depend on local circumstances, budgets and policies.
Working hours
Working hours are generally fixed by the collective agreement. Working hours are presently 37 hours a week at full-time employment. It is possible to obtain an agreement on part-time employment, but this will depend on the local planning in the organisation, and the decision lies with your Head of Department.
Tenure at CBS
You can find more information about Tenure at CBS here (pdf)
Trade unions and unemployment insurance funds
Trade unions
The trade unions negotiate wages and working conditions with employer associations on your behalf. They know the legislation and agreement very well. They stand by you and your interests, and will help you on these matters if you are faced with e.g. settling on agreements, contracts, salary negotiation or termination agreements.
Membership
You can find a relevant trade union through Akademikerne, which is the main organisation for a wide range of trade unions representing employees with academic qualifications in Denmark, at akademikerne.dk
Unemployment Insurance
The unemployment insurance provides security in case of unemployment. This insurance entitles you to a monthly benefit for a period of time in case you should find yourself without work and income.
A-kasse (Unemployment insurance funds)
In Denmark, unemployment insurance is voluntary. If you wish to be insured against unemployment, you must apply for admission to an unemployment insurance fund, A-kasse.
A-kasser are semi-public organisations based on solidarity contributions, and they are not affiliated with private insurance companies.
To be eligible for unemployment benefits, you must meet the so-called availability requirement. This means that, in the event of unemployment, you must be available to the labour market and able to accept work at short notice.
Membership and requirements
To be eligible for unemployment benefits, you must:
- have been a member of an unemployment insurance fund for at least one year
- have had a total income of at least DKK 254,328 within the past three years (2023 level)
Please note that only income earned during periods of membership is included in the calculation.
Most trade unions collaborate with a specific unemployment insurance fund, but you are free to choose which trade union and unemployment insurance fund you want to join.
You can find much more information about unemployment insurance on Life in Denmark > unemployment benefits
Trade union representative
What is a trade union representative?
A trade union representative speaks on behalf of employees in the dialogue with management. They raise concerns from colleagues and may negotiate local agreements on pay and working conditions.
There can be several trade union representatives at the same workplace. Each typically represents a specific professional group. You can find your representative in your letter of employment.
Represents the interest of colleagues
The main task of a trade union representative is to represent the interests of the colleagues who elected them. It is not a legal requirement to have a representative at a workplace – this is decided by the employer.
The trade union representative is elected
Trade union representatives are elected democratically for a two-year period. If colleagues lose confidence in their representative, they can call a meeting to decide whether the person should continue in the role. This rarely happens, but it means the representative needs to ensure support among colleagues for the agreements and compromises they enter into.
What does a trade union representative do?
You often meet your trade union representative in connection with collective agreements. But their role covers much more than that.
A trade union representative supports both the group and individual employees. They help ensure that the employer follows laws and agreements that apply to working conditions.
For example, a representative can:
- support you in a sick leave interview so you understand your rights and obligations
- join your salary negotiation if needed
- help you navigate rules, agreements and workplace processes
If you are a new employee, your trade union representative will usually contact you before you start.
Trade union representatives also have a duty of confidentiality. This means you can speak to them about workplace concerns – for example inappropriate behaviour – in confidence.
Because of this, your trade union representative can be a safe and trusted person to turn to when you need help or guidance.
Taxation
Ordinary taxation in Denmark (Panel content)
The principle behind the Danish tax system is progression. This means that the more you earn, the more tax you pay.
All individuals in Denmark pay a gross tax of 8 percent, called the Labour Market Contribution (AM tax/AM contribution), on earned income (also called A-income).
After AM tax, you pay municipal tax, church tax (optional), health contribution and state tax. In addition, as a taxpayer you may be entitled to various deductions such as interest expenses, travel expenses, contributions to certain charitable foundations and trade union membership fees.
If you are not eligible for the researcher taxation scheme, you must register with the Danish Tax Agency (“create a tax card”) once you have received your CPR number. If you do not have a tax card, you will be taxed 55 percent of your salary.
Tax rate
Since many personal circumstances influence the tax rate, it is impossible for CBS to assess your tax percentage in advance. The tax rate can vary from approximately 30 percent to approximately 56 percent. Most people fall between 35 and 42 percent. Please contact the Danish Tax Agency (SKAT) for more information about deductions etc.
Provisional tax and tax card
When arriving in Denmark – and every year thereafter – all ordinary taxpayers must register provisional tax with the Danish Tax Agency. Here you enter your expected/estimated income and expected deductions, and on that basis a provisional tax rate and a monthly tax-free allowance are calculated. A tax card containing information about your tax rate and monthly allowance is automatically sent to your employer, who then withholds tax from your salary.
You can register your provisional tax once you have received your CPR number. You can update your provisional tax assessment as many times as you like – either online at skat.dk or by contacting the Danish Tax Agency by phone.
If you do not register a correct tax card, you will either pay too little or too much tax during the year. You will then either receive a refund or have to pay outstanding tax the following year. This appears in the annual tax statement on skat.dk every March.
Annual tax statement
In mid-March taxpayers receive their annual tax statement in their tax folder on skat.dk, covering the previous year. Based on your provisional tax assessment, you will either receive a refund or have to pay outstanding tax.
It is the taxpayer’s own responsibility to ensure that the information in the annual tax statement is correct and complete – and to supplement it with additional information in a tax return if necessary.
If you do not receive an annual tax statement, you must contact the Danish Tax Agency and submit a tax return.
Researcher taxation scheme (Panel content)
If you are employed at CBS as a postdoc, assistant professor, associate professor or professor, you may be eligible for the researcher taxation scheme. This scheme provides a fixed tax rate, which is currently 32.84 percent for a period of 84 months. The researcher tax consists of an 8 percent Labour Market Contribution and a 27 percent tax. The 27 percent is calculated after the 8 percent Labour Market Contribution has been deducted.
The researcher taxation scheme applies only to income earned at CBS. Any other income is taxed according to the ordinary Danish tax rules. If you have additional income, you are liable for taxation under the same rules described above under ordinary taxation in Denmark.
Requirements
To qualify for the fixed tax rate of 32.84 percent, you must be employed in a postdoc position or higher, and you must not have been tax liable in Denmark during the ten years prior to your employment at CBS.
IMPORTANT: This also means that if you register in Denmark more than 30 days before your employment at CBS begins, you will NOT be eligible for the researcher taxation scheme. In addition, if you have a break in your employment of more than one month and keep your address in Denmark during that period, you may also lose the right to continue under the researcher taxation scheme.
Procedure
There is no need for a tax card for individuals covered by the researcher taxation scheme who have no other income or assets subject to taxation in Denmark.
Pension
As a member of faculty at CBS, you are covered by a mandatory pension scheme. CBS contributes a total pension payment currently corresponding to 17.1 percent of your pensionable salary.
In addition to saving for your retirement, you are also covered by an integrated insurance scheme that provides cover for you – and in some cases your family – in the event of disability and life insurance. The insurance cover linked to the ordinary pension contribution and the s. 53A pension contribution is flexible and can be adjusted to match your specific situation.
Your pension fund depends on your educational background, and information about the relevant pension fund will be stated in your employment contract.
For further information about insurance cover, and if you wish to have your pension paid out when leaving Denmark, you must contact your pension fund. You can find the name of your pension fund in your employment contract. If you already have a CPR number, you can also check your e-Boks for letters from your pension fund to find the contact details. Please note that it is only possible to have your pension savings paid out if you leave Denmark and are no longer employed at CBS (or in special cases if the pension amount is very low).
Pension for researchers at CBS
Ordinary pension contribution scheme
Under the ordinary pension scheme, pension contributions are exempt from taxation when they are paid into the pension fund.
The pension fund deducts 8 percent in Labour Market Contribution upon receipt and then places the remaining amount in your pension account.
Tax will only be charged when you request a payout of your pension savings. If you choose to withdraw your pension savings before reaching retirement age and leave Denmark, the current charge is 60 percent of the savings. Please note that this is referred to as a charge rather than a tax – this income is subject to double taxation.
If you choose to have your pension savings paid out at retirement age, the taxation will depend on your personal situation and the pension legislation in force at that time.
Please also note that a small monthly administration fee is deducted from the amount held in the pension fund.
Pension exemption
Some international researchers employed at CBS may be eligible for an exemption from pension contributions.
This means that an amount equivalent to the pension contribution will instead be paid out as part of your monthly salary.
This amount is taxed according to your tax scheme – either at the fixed rate of 32.84 percent under the researcher taxation scheme or under the ordinary Danish tax rules if you are not covered by the scheme.
To be eligible for pension exemption, the following requirements must be met:
• Employed as a researcher – for example as a research assistant, PhD fellow, postdoc, assistant professor, associate professor or professor
• Not a Danish citizen
• Fixed-term employment of no more than five years
• Recruited from abroad
If you choose pension exemption instead of the ordinary pension scheme or the § 53A scheme, please note that you will not be covered by the insurance package normally linked to the pension contribution. If you have questions regarding insurance cover, we recommend contacting a pension fund, as the coverage varies between providers.
§53A pension scheme
Under the § 53A pension scheme, CBS also pays a monthly pension contribution to the relevant pension fund. Unlike the ordinary pension scheme, the contribution under the s. 53A scheme is taxed immediately when it is transferred to your pension fund, in accordance with your applicable tax rate. This will appear on your monthly payslip.
If you are covered by the researcher taxation scheme, the contribution will be taxed at 32.84 percent. If you are not eligible for the scheme, the contribution is taxed under the ordinary income tax rules.
Under ordinary taxation, the tax rate can vary between 37 and 51 percent depending on your salary. Your pension contribution is taxed as “A-income”, just like your salary, and will therefore affect your progressive taxation.
Whether you choose to have your pension paid out when you leave Denmark or leave it in your Danish pension fund until retirement age, the vast majority of the tax on the pension earned from CBS will already have been paid.
Please note that returns (capital gains) on your pension savings are taxed annually and reported as capital income on your tax return. Please contact your pension provider or the Danish Tax Agency for more information.
If you leave CBS and Denmark before retirement age, you can receive the remaining amount without further taxation. However, an administration fee will be deducted from the amount held in the pension fund.
To be eligible for the § 53A pension scheme, you must be employed under the collective agreement for academics in the state sector, and the pension fund you are affiliated with must offer the § 53A scheme to its members (most Danish pension funds do).