Employees at private companies about to get a better paycheck

An overall salary increase for private employees of approximately 5 percent in 2023 is in line with inflation, but as it falls, real wages could in fact rise

Broadly speaking, wages are rising in Denmark.

The first reports from the regional wage negotiations are in at Dansk Industri, the branch organisation for private companies in Denmark.

Every fifth company has completed salary negotiations, and the result is that hourly workers are getting 2.9 percent more and white collar workers 3.5 percent more.

In addition to the local wage adjustments, there are the centrally determined increases.

In 2023, there will be an increase in the employer’s pension contribution from 8 to 10 percent from June 1. Add to that the regional wage increases, and this adds up to an increase of almost 5 percent.

Hard to find employees
DI deputy head Steen Nielsen, who oversees salary statistics at the organisation, explains that the salary increases are solid compared to salary developments over the past 20 years.

“It’s not surprising when you consider the high inflation and how many companies are struggling to find employees. And it is realistic to expect we will have a real wage increase before too long, as these wage increases are in line with inflation, which according to forecasts is decreasing,” he said.

On a regional scale, the largest increase in wages for private employees can be seen at companies in the Capital Region and North Jutland.

In the Danish labour market, it is the management and union representatives of the companies who negotiate the regional wage increases.

They do so based on the collective agreement adopted in the spring for approximately 600,000 private employees, which applies for two years.

The remaining 80 percent of companies will conclude their regional wage negotiations later this year.