Salary for Solution Architect 10 Years

Hi All,

I have been given a tentative offer by a renowned Danish Company which I need to confirm in next 2 days, they have given me 50K monthly salary and Phone with company connection Plus 5 weeks holiday as offer.

I am married with one kid and based on my findings in last few days through internet, I believe the tax would be around 35%. Thus, I would be getting around 32K DKK in hand.  As far as Rent is concerned I think to find a decent 2 room house (1 Bedroom + 1Hall + Kitchen) would cost me 12K DKK including Electricity Heating and Water. My office is neat Gentofte area but we would prefer to stay near Lyngby or Valby.

Calculating all other expenses (including child's one) and considering Copenhagen one of the most expensive cities,  I believe I would end up spending 24K a month out of 32K.

And in my opinion I think they are offering a salary on which I can just survive but not live. :(
FYI, I am currently staying in Singapore for past few years.

That's why I wanted to ask if I should negotiate my salary a bit to 55K monthly or 50K DKK monthly is good salary for 10+ years experienced IT Architect?

Please help me guys!! Its getting very difficult to decide here.... :-(

Thanks a ton in advance!
/C

Hi C

Most people in Denmark would wish they were offered such a salary, but you are in the IT area, and we all know that people are highly paid within this profession.

The salary is always open for negotiation, and I cannot see why you shouldn't try to get a better offer, e.g. 55,000 DKK a month, but as the company is a renowned Danish company they are not trying to underbid you. My guess is that the offer to you is an appropriate salary, but that you may get a little more by negotiating. 

However, I suggest that you ask the company for help in finding an apartment as the apartments are not easy to find. It will ease the project if you are willing to pay 12,000 DKK a month plus utilities. Still, you'll not be able to pick and choose.

Also ask the company for a relocation package as part of the negotiations.

Regarding taxation, the tax on an income of 660,000 DKK will amount to 252,000 DKK (as long as your wife doesn't work. The example is based on Lyngby-Taarbæk municipality's taxation rate this year.

Your own estimations are quite precise, but unlike you, I wouldn't be pessimistic about my living standard, but of course, this depends on your habits and expectations for life not mine.

A hard decision to make, but do remember that you'll find no better work/life balance in the world than in Denmark which I would personally rate very highly.

I have found a couple of links to you:
http://www.lonstatistik.dk/lonninger.as … itekt-5205http://xn--ln-lka.info/it-arkitekt-l%C3%B8nhttps://karriere.jobfinder.dk/da/loenst … t-arkitekt

/Nellie

Hej Nellie,

Tak for your response. :)

Actually, I have been working in a Danish company for 3+ years and I understand the work life balance part, which they even maintain in Asia (which is incredible). This is one of the reasons I am planning to accept the offer. I also understood your point about salary and seems its a good salary to avail out there, but being an expat you have many challenges like paying higher rent, for schools, or loosing your job at the very first edge when there is a downside in economy. :(

Anyways, I found your response really helpful and optimistic. I have been worried about myself & my wife as picking Danish would be a bit difficult. As far as my kid is concerned he can pick up Danish from beginning as he is very little and by going to Child Care or pre-schools one can easily learn the new language.

I will try to negotiate a bit but let's see if I get money or some extra leaves (which I believe quite in trend) :)

Special Thanks for clarifying on Tax part for spouse part but what about kid, will I get some tax rebate for my child? Or I will only be able to get some allowances from Government as mentioned below:

Quoting from Deloitte's Tax PDF:

Family (Child) allowance
Individuals covered by Danish social
security are entitled to child allowance
for every child younger than the age of
18. The basic annual allowance is
17,880 DKK per child up to the age of
3; 14,148 DKK per child aged 3 to 6
and 11,136 DKK per child aged 7 to 17.
Rates and brackets for 2016 are used.
Please note that starting 1 January 2013
individuals will only receive the full child
allowance if one of the parents has
been fully tax liable to Denmark or
working in Denmark for at least 2 years
within the last 10 years before receiving
the child allowance. After half a year in
Denmark individuals receive 25% of the
child allowance, after one year in Denmark individuals receive 50% of the
child allowance and after one and a half
year individuals receive 75% of the child
allowance.


Kind Regards,
C

Hi again

I agree with you. It is a big (and also risky) step to relocate from one part of the world to another and especially when you are responsible for a family.

One upon a time, you would have been entitled to a tax deduction if you had children, but this deduction has been replaced by the child allowance.

I did not mention anything about the child allowance as the government just now is negotiating next year's budget with the opposition, and it will be no surprise if they agree on retrenching the child allowance. It has been one of the issues in the air. Probably, it will be depend on your salary thus if your salary is above x DKK, it will gradually be reduced until nothing is left. As things are just now, I'll take it as a gift if I get nothing at all, but I wouldn't budget with it.

Today, everybody over 18 years gets a deduction in the taxes regarding green energy. If you don't pay tax because of no income, you'll get the amount cash (your wife e.g. will get 1,230 DKK a year). Your child will also be entitled to an amount of 220 DKK a year. You see, it isn't worth writing about, especially as it probably will be retrenched from next year.

http://www.demo.tastselv.skat.dk/fskbrg … ultat.aspx

Neither have I written about the housing benefits. In principle, you are entitled to this, but it will probably be much reduced from next year, and as the benefit depends on the size of the apartment, rooms, your income, the rent, I didn't mention it because of your high income.

You and your wife will be entitled to a Danish language course from the very beginning. A good offer because you'll be socially handicapped in society if you not master the Danish language. There are also international kindergartens if you want your child to speak English.

I don't know much about Valby, but Lyngby is in my opinion second to none and close to Gentofte. The pay for kindergartens vary from municipality to municipality. Therefore, a more expensive and cosy apartment in a 'cheap' municipality may be more advantageous to rent than a cheaper and not so cosy apartment in an 'expensive' municipality when you take everything into consideration.

/Nellie

Hi C,

I'm working as a IT solution architect in a big company.
The salary that you are offered is inside the normal range.
Consider that taxes are very high (in my experience more than 35%, perhaps around 40%, but I'm living in Copenhagen).
It is also true that cost of live is also very high... but the good news are that services are great and you don't need to spend money for school (if you use the public one), healthcare, etc. You can save lots of money if you decide not to have a car (it's quite 3 years that my family and me are moving only with bikes and public transport, and we have never had any problem).
When my wife and me moved to Copenhagen (with 2 children under 10 years), we were able to live well with less than 25000 DKK per month, paying 12000 DKK/month for renting our apartment.