IDA's interactive payslip: How to understand your payslip
AM contributions, ATP scheme and functional allowance.
When your payslip ticks into your inbox each month, there may be many abbreviations and terms that you are not familiar with. But don't worry. You are not alone. IDA can help you read your payslip and see what you need to pay attention to.
Understand your Danish payslip with IDA's interactive payslip
Payslips do not all look the same – they vary depending on whether you are employed in the private or public sector. They are also full of technical terms.
That is why IDA has developed a digital tool that can help you read your payslip, so you can be sure that you understand the various terms and that you are not being cheated out of money that should be yours.
IDA's interactive payslip guides you through the various items that typically appear on your payslip. You can select the most common types of payslips.
Once you have selected the type, you can click on the item you would like to have explained. The elements with commentary will be marked in a light blue and when you hover over them, you can read about each item.
Toggle the language in the right corner for English explanations. The pay slip will stay Danish, so you can compare to your own, but the explanations will translate.
What should I look for on my payslip?
Your payslip not only provides insight into your salary, but also contains information about your tax obligations, pension, and other important details.
Here are 7 things you should check on your payslip:
Personal information: Check that all the information on your payslip is correct. An incorrect national insurance number, an error in your address or a missing middle name can affect your tax calculations.
Period: Your payslip will describe the period covered by your salary. This is usually on a monthly basis, but for project work or other temporary assignments, it will be different. It is important that the period and hours are correct, as this affects when you have to pay tax, among other things.
Basic salary and supplements: Your basic salary and any supplements are the amount you have earned before tax or other deductions have been made - in other words, your gross salary. If you have overtime, bonuses or other types of supplements, these will also be shown here.
Tax and deductions: Your payslip will also show how much tax you have to pay in A-tax and what deductions you have. This includes both income tax and mandatory contributions such as AM (labour market contributions) and ATP (labour market supplementary pension).
Net salary: Your net salary is the amount that is transferred to your account after tax and various contributions and deductions have been deducted.
Pension: Most companies, both public and private, have a pension scheme. Your payslip will show how much your employer pays into your pension scheme each month. It is important to familiarise yourself with how the pension scheme works, as it can involve a lot of money in the long run.
Other benefits: Some payslips may also contain information about other benefits. These may include insurance, mileage reimbursement or allowances if you are away from work for several hours a day or perhaps have to stay overnight somewhere else.
Value of employee benefits: If you have health insurance, a free telephone or other employee benefits, the value of these will be stated on your payslip.
Holiday: Your payslip will often also show how much holiday you have earned and taken.
Who is responsible for ensuring that my payslip is correct?
In Denmark, the employer is responsible for ensuring that the payslip is correct.
The employer is obliged to deduct tax and other mandatory contributions from the employee's salary and report the information to the relevant authorities.
The Tax Agency actually supervises employers' compliance with their obligations. In this connection, they may carry out checks to ensure that employees receive the correct salary. If this is not the case, companies risk sanctions or fines.
So keep in mind that it is your right to receive a correctly completed payslip. And speak up if there is anything that puzzles you.
How do I check if my payslip is correct?
Pay particular attention to your first payslip in a new job, after a pay rise or if your pay suddenly changes.
A good way to ensure that your payslip is correct is to compare it with previous payslips.
What should I do if there is an error on my payslip?
If there is an error on your payslip, you must find it yourself. Neither your manager nor HR will ensure that your payslip is correct.
If you have the slightest doubt about the accuracy of your payslip, you can contact your manager, the payroll office or the HR division.
As a member of IDA, you can also contact IDA's legal advisors if you have any questions about your payslip or if there is a disagreement or dispute about your payslip.