Danish government to increase tax break for trade union members

Ritzau/The Local
Ritzau/The Local - [email protected]
Danish government to increase tax break for trade union members
Denmark could increase the tax subsidy given for trade union membership fees. Photo: Philip Davali/Ritzau Scanpix

The Danish government says it wants trade union membership to be made cheaper by increasing tax subsidies given on membership fees.


The tax subsidy for trade union membership fees would be increased from 6,000 kroner to 7,000 kroner per year under the government plan.

“We are doing this to strengthen the Danish [labour] model and it obviously will also give a tax break to many Danes,” Social Demlcratic tax minister Jeppe Bruus told financial news outlet Finans.


“The Danish model depends on a high grade of membership for both trade unions and employer organisations. We are giving a helping hand in this regard,” he said.

Danish tax rules allow reductions on taxable income for membership fees paid to both trade unions and unemployment insurance providers termed A-kasser.

READ ALSO: Four ways to (legally) lower your tax bill in Denmark

A similar proposal was tabled in parliament by the previous, single-party Social Democratic government and had a majority backing, but was not adopted in time for last November’s election.

The Social Democrats have since supported their current partners in the coalition government, the Liberal (Venstre) and Moderate parties, to support the plan.

The Liberals were reported to oppose the move as recently as November 24th, when they were still in talks to form the government.

The new proposal to increase the tax break on trade union membership comes after the government successfully abolished the Great Prayer Day public holiday, effective from 2024.

The Great Prayer Day abolition was strongly opposed by trade unions, who accused it of being an attack on the Danish labour model.

But the new proposal will not soften the blow of losing the public holiday, the leader of trade union HK said in comments to Finans.

“If the government thought this, they certainly have a quite different target to me,” HK chairperson Anja C. Jensen told Finans.

Jensen meanwhile praised the proposal for being a “recognition of the role of trade unions in the Danish [labour] model”.


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