The average pre-tax income in Denmark rose to 395,500 kroner in 2023, a 6.3 percent rise on the average in 2022, and the highest year-on-year percentage rise in real incomes seen in the country in 30 years.
The sharp rise was driven primarily by income from investments, with shares and funds which performed poorly in 2022 bouncing back strongly in 2023, leading to a near-doubling in the earnings booked by many Danes.
"The high increase in the average total income per person before tax in 2023 must be seen in the light of an extremely good year on the financial markets," Statistics Denmark wrote in a press release. The average pre-tax income from assets shot up 77 percent to 24,600 kroner in 2023, after the disappointing 29 percent decline in investment earnings received on average in 2022.
Income from salaries rose a very solid 4.1 percent, with the average pre-tax salary rising by 10,100 kroner to 255,900 kroner. Income from small businesses rose 3.8 percent from 265,500 kroner to 275,500 kroner, while income for the self-employed was flat compared to 2022 at an average of 18,600 kroner.
"It's hardly surprising that income is rising on average," Brian Friis Helmer, a private economist at Arbejdernes Landsbank, said in a comment. "Employment rose by more than 30,000 last year, and wages in the private sector, in particular, rose noticeably. With more Danes in work and more in the salary bag, it raises the average income."
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