How will Denmark’s 2023 budget affect your finances?
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Loading... - Clarissa Gataki
- 27 Apr 2023
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Extra parental leave if you have twins and tax cuts for young people are among new rules to be introduced under Denmark’s 2023 budget.
The delayed 2023 budget was presented by the government and four opposition parties on Monday after they agreed on the final form of the annual finance plan.
Of the opposition parties who joined the budget, two are from the left wing (the Social Liberals and Socialist People’s Party) and two are from the right wing (Liberal Alliance and Danish People’s Party), resulting in a mix of policies.
Parents of twins (and triplets, quadruplets and so on) get extra parental leave under the terms of the budget for this year.
A full 26 weeks’ extra leave will be granted to parents of twins, who currently receive the same amount of leave as parents with a single newborn.
The additional leave does not come into effect immediately, however. Employment Minister Ane Halsboe-Jørgensen said in a government press statement that the model would be drafted in full “later this year”.
The budget sets aside funding to ensure that the additional leave is paid for. A total of 5 million kroner in 2023, 48 million kroner in 2024 and 95 million kroner annually from 2025 onwards has been secured.
Another key announcement arising from the budget agreement is a tax cut for people under 18, who will see the threshold for their tax-free earnings (bundfradrag in Danish) raised from 38,400 kroner per year to 48,000 kroner per year. The measure will cost the government 35 million kroner per year from 2023. Read More…
