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negotiating expat job contract

Last activity 23 August 2017 by billygilly

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abhinavs

Hi,

What should be important points to keep in mind while negotiating a job contract with a potential Danish employer?

Listing down few points which come to my mind. Please suggest

1. Gross Salary vs Net Salary
2. Taxation
3. relocation assistance
4. Housing contract advance?
5. International school fees?


Thanks

Nellie Berg

The salary will always be a gross salary.
Taxation? It's not up to the employer to decide how to taxate.

Other issues can always be negotiated. It will be relevant to negotiate relocation assistance, but do notice that it will be part of the salary and therefore taxated.

I am more pessimistic about the outcome of the negotiations when the talk is about housing contract advance and international school fees.

I just wonder why you don't list a pension scheme, but perhaps it is because you take it for granted?

/Nellie

abhinavs

Thanks Nellie,

Yes I have taken the pension scheme included by default.

How does the pension scheme work? I assume its some percentage of the salary which is deducted by the employer. Does it help in tax reduction? Also, when the employee quits, is the amount refunded?

for point #1, I meant if it is better to negotiate on the net salary or consider the gross package.

billygilly

Hi Abhinav,

Reg pension schemes, there is a scheme called 53A where you can opt for the pension fund to be taxed every month. That means when you leave denmark in few years you will take the nett amount.

On conventional pension schemes, when you decide to leave denmark your goal pension will  be taxed 60%.

If you decide to stay here on short term, people are suggested with option 1. Again, you can always switch between these 2 schemes.

Best Regards

abhinavs

Thanks.

What is the % cut in the scheme 53A?

Also, are there taxes when an expat moved out of Denmark?

Nellie Berg

http://ism.ku.dk/salary-tax-pension/Pension.pdf

I think KU explains this issue better than I can do.

When you move out, the tax authority will make a final settlement, but it's nothing to talk about.
The tax you pay every month is a provisional tax based on an estimate of your expected income in the calendar year. When the year is over, a final settlement will be made, and you either have to pay a your unpaid tax or get money back. If your income all comes from your monthly pay, the provisional tax and the unpaid tax are largely the same.

/Nellie

billygilly

I hope Nellie's reply would have clarified your doubts. If not, when  you opt for 53A scheme, your entire pension gets taxes every month and the nett amount is saved in pension account. The pension contribution depends on individuals and the company contributions

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