There’s a tool many Danish employers are familiar with but rarely use strategically. It costs nothing extra to offer, it’s highly appreciated by employees, and it strengthens your competitiveness in both recruitment and retention. Yet it often ends up at the bottom of the HR agenda.<\/p>\n\n\n\n
We’re talking about gross benefits, or bruttol\u00f8nsordning<\/em> as it’s known in Denmark. Here’s why it’s time for employers to take it seriously!<\/p>\n\n\n\n <\/p>\n\n\n\n Gross benefits, also known as bruttol\u00f8nsordning<\/em>, is an arrangement that allows employees to purchase certain benefits directly through their gross salary, before tax is calculated. Instead of receiving their full salary in cash and buying benefits with taxed money, employees can have the cost deducted at source, meaning they effectively pay less tax and get more value for the same gross salary \u2014 at no extra cost to the employer.<\/p>\n\n\n\n Common benefits that can be included are:<\/p>\n\n\n\n There are several strong reasons to use the gross benefits scheme as an active HR tool:<\/p>\n\n\n\n A stronger benefits offering at no extra cost. Because the employee takes a salary reduction, the arrangement essentially pays for itself. Employers can offer attractive benefits without increasing payroll costs.<\/p>\n\n\n\n Competitive edge in recruitment. A well-designed benefits package signals that you, as an employer, care about employees’ whole lives, not just their salary. That argument carries increasing weight in a tight labor market where the battle for talent intensifies.<\/p>\n\n\n\n Improved employee satisfaction and retention. Benefits that are actually used and feel valuable strengthen engagement. The bruttol\u00f8nsordning<\/em> gives employees the opportunity to choose benefits that fit their own life situation.<\/p>\n\n\n\n Reduced payroll costs. Because the gross salary is reduced, the employer’s l\u00f8nsumsafgift<\/em> (payroll tax) and, in some cases, pension contributions may also decrease, creating an indirect saving.<\/p>\n\n\n\n <\/p>\n\n\n\n For a gross benefits scheme to be valid from a tax perspective, a number of basic conditions must be met:<\/p>\n\n\n\n <\/p>\n\n\n\n There are a few mistakes HR should avoid:<\/p>\n\n\n\n It doesn’t have to be complicated to implement a gross benefits scheme. Here’s a suggestion on how to start:<\/p>\n\n\n\nBut first, what’s gross benefits?<\/strong><\/h4>\n\n\n\n
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<\/li>\n<\/ul>\n\n\n\nThe advantages for employers<\/strong><\/h4>\n\n\n\n
Rules HR needs to know<\/strong><\/h4>\n\n\n\n
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It’s also important to check that the arrangement is compatible with any collective agreements that apply to the employment relationship.<\/p>\n\n\n\nCommon pitfalls<\/strong><\/h4>\n\n\n\n
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<\/li>\n<\/ul>\n\n\n\nHow to get started<\/strong><\/h4>\n\n\n\n