The Danish Parliament has approved a salary increase for future politicians, a decision reached after years of debate regarding compensation and pension plans. While severance pay will be reduced and tax-free expense allowances abolished, the focus remains on the increased annual salary and pension benefits for members of parliament.

Future members of parliament will see their total annual income rise from 948,000 to 1,080,000 kroner, equivalent to a department head’s salary in a ministry. Ministers will experience a salary increase from 1,702,000 to 2,016,000 kroner.

Politicians will no longer receive the civil service pension, which has been criticized as overly generous. Berlingske’s political commentator, Bent Winther, believes this decision is a balance between attracting qualified candidates with a decent salary and avoiding excessive remuneration that is far removed from the average worker’s income.

The new regulations will apply to newly elected members of parliament, excluding current and re-elected politicians.

A remuneration commission was established in 2014 by several parties to recommend a new salary system for politicians. The commission’s recommendations in 2016 included higher salaries and lower pensions for politicians.

The agreement is projected to save the state 20 percent of current expenses for politicians’ remuneration, amounting to just over 30 million kroner annually. However, these savings will not be fully realized until 2090.