Conditions for employees under the §48E scheme

Qualification requirements

Employees who meet the applicable conditions in § 48E of the Danish withholding tax Act may be employed on an individual contract in accordance with the protocol. The central requirements include:

• Tax liability: The employee must not have been fully liable to tax in Denmark or limited tax liability to Denmark on his or her salary or business income within the last 10 years before employment.
  
  
• Management and control: The employee must not have, or within the last five years before his/her employment, have had, direct or indirect management, control or influence relations with the business.
  
  
• Minimum salary: The employee must meet the minimum salary applicable at any time, as stated in the tax legislation, after deduction of ATP. The salary is calculated as an average per month during the calendar year and must include all salary supplements.

Employment terms and conditions

Employees under §48E scheme are employed on the following terms:

• Individual contract: Employment is done on an individual contract.
  
  
• Pension: Pension plan is not set up. The bank's pension contributions are paid out instead as a salary supplement (pension supplement).
  
  
• Salary: Employees are paid in arrears.
  
  
• Salary adjustment: Employees with a salary below the limit for contract employment receive as minimum a salary adjustment each year corresponding to the collective salary increase for employees under collective agreements at Danske Bank.

The scheme allows for flexible employment conditions that support the individual needs of the employees within the framework of §48E.