The agreement increases the ordinary employment deduction (Da. “beskæftigelsesfradrag“) in the personal income for employed individuals and also increases the extra employment deduction for single parents resulting in yearly tax reductions for an individual for up to respectively DKK 3,000 and DKK 5,100.
Furthermore, a new additional employment deduction for seniors will be introduced. The employment deduction will be effective from two years before the state pension age and lapses at the state pension age.
The tax-exempt senior premium that can be obtained in the first and second year after the state pension age when still working will be increased both years.
Furthermore, funds are set aside for an employment bonus for vulnerable young people aged 25 to 29 who do not have an education, are not studying and have been unemployed for an extended period. The bonus is intended to encourage them to become part of the working community.