A gross salary agreement is an agreement you can enter into with your employer. It means that you go down in salary by an amount equal to the cost of the education. This means that the employer pays for the training and subsequently deducts the amount from your gross salary and in this way you get a tax saving.
An example - you want a Business Practitioner education. It costs DKK 20,900. If you make the agreement over 12 months, you must go down approx. 1,742 in salary per. month.
Establishment of a gross salary agreement
A gross salary agreement is established by the employer and the employee entering into a new wage agreement or a supplement to an already existing wage agreement. The agreement will state that the employer makes one or more benefits available in exchange for the employee reducing their gross salary.
Requirements for gross salary agreement
According to practice, the following requirements must be met in connection with an agreement on gross salary reduction in order for the tax authorities to recognize the agreement for tax purposes:
Below is an example that illustrates the tax savings that come with a gross salary agreement.
The employee "avoids" paying DKK 9,748 for the education rather than DKK 20,900, as the tax finances the remaining part of DKK 11,152.
VAT is not included, as the company can deduct VAT.