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Wage Index in Denmark

Is your salary keeping up with the market? See wage development and compare

What is wage index?

Standardized Wage Index (SBLON1) The wage index from Statistics Denmark measures average wage development across all industries in Denmark. It shows how much wages have generally increased since the base year 2016.

The Danish wage index rose 27% from 2016 to 2024 (base year 2016=100). Average annual wage growth is approx. 3%. Adjusted for inflation, real wage growth is +7% over the period.[↗]

A wage index of 127 means wages have on average increased 27% since 2016. It's an average - your industry may differ.

The difference between wage index and inflation

Wage index measures wage growth, inflation measures price growth. If the wage index rises more than inflation, you gain purchasing power (real wage increase).

Historical wage development

Wage development has been stable in recent years, with accelerating growth from 2022. In 2023-24 wages increased over 5% annually.

Since 2016, average wages have increased 27%, while inflation only increased 20%. That's a real wage increase of about 7%.

Are you keeping up with the market?

Use our calculator to see what your salary should be today if it kept pace with the market average.

Example

If you earned 40,000 DKK/month in 2016, you should be earning about 50,800 DKK/month today to keep up with the market (+27%).

If you're below market, you've effectively had a pay cut compared to other workers - even if your kroner amount has increased.

Wage growth calculator

Enter your salary from an earlier year and see what the market pays today.

Wage growth calculator

kr/md

Market value 2024

49.200 kr/md

Wage growth since 2016

+23.0%

If you earned 40.000 DKK/month in 2016, you should earn 49.200 DKK/month in 2024 to keep up with the market.

Compare with your current salary

kr/md

Career advice

Benchmark against the market

Use the wage index as an argument in salary negotiations. 'The market has increased X% since I was hired, but my salary only Y%.'

Job changes beat annual negotiations

Data shows that job changes typically give 10-20% salary increases, while internal negotiations give 2-4%.

Combine with inflation

The strongest argument combines wage index AND inflation. Show both that you're below market and that your purchasing power has fallen.

Job changes typically give 10-20% salary increase, while internal negotiations give 2-4%. Combine wage index and inflation data for the strongest negotiation argument.

How to do it

  • 1
    Know your starting point

    Find your salary from when you started the job

  • 2
    Calculate market value

    Use our calculator to see market level

  • 3
    Prepare arguments

    Document your results and market data

  • 4
    Negotiate or switch

    Choose the strategy that suits you best

  • FAQ

    The wage index (SBLON1) is Statistics Denmark's measure of average wage development across all industries in Denmark. It shows how much wages have generally increased compared to a base year (2016 = 100). A wage index of 127 means wages have on average increased 27% since 2016.

    Statistics Denmark uses 2016 as the base year for the current standardized wage index. This means all values are relative to the average wage in 2016 (index 100). Older wage data exists but uses different calculation methods that are not directly comparable.

    The wage index measures how much wages have generally increased. Inflation (CPI) measures how much prices have increased. If the wage index rises more than inflation, workers have gained purchasing power - also called real wage growth. Conversely, real wages decrease if inflation exceeds wage growth.

    Compare your salary development with the wage index. If you earned 40,000 DKK/month in 2016 and the wage index has increased by 27%, you should be earning around 50,800 DKK/month today to keep pace with the market. Use our calculator above to see your personal figure.

    The wage index covers all industries in Denmark, weighted by their share of total wages. It's an average - individual industries like IT, finance, or construction may deviate significantly from the average. DST also publishes industry-specific wage indices.

    If your salary is below the market average, you have effectively had a salary reduction compared to what you could have earned. This can be a good argument in salary negotiations, but remember that individual factors such as experience, performance, and geographic location also play a role.

    The wage index is an average, so some will be above and others below. Generally, it's easier to achieve wage growth above average by changing jobs than through annual negotiations with the same employer. In Denmark, salaries typically increase 2-4% annually in internal negotiations.

    In salary negotiations, you can use the wage index to show that your salary is not keeping up with the market. Prepare specific figures: "The wage index has increased X% since I was hired, but my salary has only increased Y%." Combine with inflation and your specific achievements for the strongest possible argument.