The Danish Parliament has approved a new salary and pension agreement that will significantly increase the annual income for newly elected members, although it reduces severance pay and abolishes tax-free expense allowances. The decision, reached after years of debate, is expected to draw criticism from opposition parties.

Under the new rules, future members of parliament will see their annual income rise from 948,000 to 1,080,000 kroner, aligning their salaries with those of department heads in government ministries. Ministers will receive a salary increase from 1,702,000 to 2,016,000 kroner.

The agreement also eliminates the civil service pension for politicians, a move aimed at addressing criticism regarding its generosity. Political commentator Bent Winther describes the situation as a difficult balance, stating that while politicians deserve adequate compensation to attract qualified candidates, their remuneration should not become excessive.

The Danish People’s Party, the Denmark Democrats, and The Red-Green Alliance opposed the agreement and are expected to leverage the issue to criticize what they perceive as politicians’ greed. The changes will only apply to newly elected members, sparing current and re-elected politicians.

The new system is projected to save the state 20 percent of current expenses for politicians’ remuneration, amounting to just over 30 million kroner annually, but these savings will not be fully realized until 2090. A remuneration committee formed in 2014 initially proposed the changes, including higher salaries and lower pensions, with the aim of creating a comprehensive salary system for politicians.