Definition

Net salary

What does it mean?

Net salary (nettoløn) is gross salary minus AM-bidrag (8%), A-skat withholding, employee pension contributions and other deductions (union, insurance, cafeteria schemes).

Budget and lifestyle planning should use net figures. Approximate net from gross using tax calculators (skat.dk) with your tax card settings.

Higher gross does not scale linearly to net due to progressive taxation and top tax (topskat) above threshold. Pension contributions reduce taxable income but also cash in hand.

When comparing offers, calculate comparable net including pension structure — higher pension may mean lower cash but better long-term value.

Magnus Villumsen, Content Creator at Arbejd.com
Defined by Arbejd.com

Magnus Villumsen

Content Creator
Last updated
March 7, 2026